Published:  01:51 AM, 10 January 2019

Banking Company Act to be amended to revive the sector

Banking Company Act to be amended to revive the sector AHM Mustafa Kamal

Finance Minister AHM Mustafa Kamal yesterday said the government will amend the 'Banking Company Act' for reviving the banking sector to empower the sector to play more roles for developing the country.

"We are providing special attention to the banking sector for enabling it secure a strong position. So, we took a decision to amend banking law for solving different problems of the sector," he told journalists after exchanging views with the officials of the Financial Institutions Division at the Finance Ministry in the city.

The finance minister said non-performing loan (NPL) in the banking sector is increasing day by day since there are some difficulties in the existing law. "Borrowers will have to repay their borrowing money. We have already identified the difficulties of the banking law. If we can perfectly implement the law, the amount of NPL will reduce rapidly," he added. Kamal said the meeting also discussed about forming a strong committee to verify all classified loans in the banking sector.

 "We are working to ensure repayment of the borrowing money in time. We believe that we can put the banking sector into a strong position," he added.

He said they will also strengthen the training institutions of the sector as the officials concerned can get time befitting training and play role to strengthen the country's banking industry. Kamal said more manpower is essential in the Financial Institutions Division to expedite its monitoring activities and ensure accountability among the officials of the banking sector.

Responding to a question, he said the existing interest rate and spread in the banking are very high not beneficial for industrialization and employment generation. Senior officials of the Financial Institutions Division were present at the meeting.

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