The central bank on Sunday unveiled its first ever long-term action plan for vigorous reforms in the country’s financial sector.
The plan, a guideline for the next five years, aims at a stable monetary policy, speedy automation and skilled development in the banking sector.
It also addresses development of agriculture, small and medium enterprises (SMEs) and financial inclusion of rural majority to attain inclusive growth for establishing social parity.
Capacity building of the banking sector and developing an effective credit policy are also two major areas of attention of the plan.
“We should go far from our present position for ensuring a sound banking sector,” Bangladesh Bank (BB) Governor Dr Atiur Rahman said while unveiling the plan in the city.
He said Bangladesh banking sector showed resilience to the recent global recession, but the central bank prepared the strategic plan as a contingency policy to make this sector stronger.
The central bank prepared the plan after detail discussions with all banks and financial institutions, World Bank and International Monetary Fund and with leading chambers and trade- bodies.
The plan will assist boosting the capacity and efficiency of the banking sector through consistently endeavoring automation programme, stable monetary policy, skilled development, capacity building and a prudent credit policy.
In the past few years the banking sector had been modernised to some extent, but majority of bank branches were still running on a combination of old and modern system, leaving the vast majority out of efficient banking services.
The strategic plan will support banks to expand their automation programme to bring more people under institutional financial facilities with new and innovative products.
It underlines the importance of continuing support to the agriculture sector and increase assistance to the small and medium enterprises (SME) by two to three times of the present rate.
The overall investment will get more attention in the plan, but it will encourage more investment in the agriculture and SME sectors.
Human resource development will be another area of major development under the strategic plan.
The central bank will review the plan once a year to update it with new measures.
A monitoring team of the central bank, however, will oversee the implementation process regularly and will have meetings in every three or six months.