Published:  02:32 AM, 12 August 2017

Idle money rising in banks

Idle money is increasing tremendously in the country's banks and financial institutions. On the other hand, entrepreneurs are not taking loans as favo-urable environment of inv-estment is yet to be created. Due to absence of entrepreneurs, the bank and financial institutions are investing different bonds and getting nominal rate of interest.

In recent time a number of banks and financial institutions have invested more than two trillion taka for bonds purposes. But the banks and financial institutions are counting a huge amount of interest against idle money. Experts say, the entrepreneurs are creating new projects but do not implement those resulting in huge idle money at banks.

They also say, infrastructure problems and gas shortage are inducing unwillingness of investors. According to the central bank there is more than Tk 1.16 trillion totally unused in the country's banks and financial institutions which day by day is increasing. AB Mirza Azizul Islam, former adviser to caretaker government, said, now  country's political situation is stabled but the uncertainty among the traders is yet to cut. 

He further said for the lack of confidence, fresh investment is not increasing. Due to absence of new deal the local entrepreneurs are not taking credit. As a result, idle money is piling up at the country's banks and financial institutions.

Dr Salehuddin Ahmed, former governor of Bangladesh Bank (BB), said, the private sector entrepreneurs could not expand their new project. That's why the surplus liquidity is being deposited in banks. Against this money the banks are counting interest regularly. He said the entrepreneurs are not coming forward with fresh projects due to unfavourable investment environment. As a result, the banks are forced to invest in government bonds.

He further said if the businessmen can investment freely, the new projects will increase and idle money will reduce.Abdus Salam Murshedy, Managing Director of Envoy Group, said, for fresh investment land is not available. Now the biggest problem is gas crisis. Besides they are paying higher prices but not getting uninterrupted power.

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