Bangladesh Bank (BB) Governor Dr Ahsan H Mansur has assured depositors that their funds in weak banks will be returned in phases.
Speaking as the chief guest at a workshop on microfinance held at the CIRDAP auditorium in Dhaka, Dr. Mansur stated, "I assure you that you will get your money or bonds back gradually."
The governor also reflected on his decade-long warnings about certain banks. "For the past ten years, I have advised against depositing money in S Alam's banks, yet many opted to do so for an extra two percent profit," he noted.
Dr. Mansur highlighted the increasing challenges facing microfinance institutions over the next five years. He pointed out that while microfinance institutions currently operate 24,000 branches across the country, banks have an equal number of agent banking outlets. He projected that banks would expand their agent banking outlets to around 60,000 within the next five years, intensifying competition.
He also emphasized the growing competition posed by mobile financial service (MFS) providers, which now offer loans and accept deposits. Furthermore, he mentioned the potential impact of digital banks, which are likely to present new challenges for the microfinance sector.
The governor shared that during the 2023-24 fiscal year, microfinance institutions disbursed loans amounting to Tk 3 lakh crore, a 5.26% increase from the previous year.
