State-run banks asked to cut operating costs

The finance ministry has ordered state-run banks and financial institutions to lower non-compulsory expenditures as a way of increasing liquidity through loan distribution in coronavirus-affected businesses.

It has also ordered them to take preparations for implementing the government's coronavirus stimulus packages.

It has asked state-run banks and financial organisations to temporarily stop buying movable assets, and going for office space rents and decorations in order to decrease non-compulsory expenses.

At the same time, it has recommended saving on car usage and decreasing expenses on board meetings and other meetings and programmes, annual general meetings, hospitality and other sectors.

Orders have been given for banks to use conference rooms for meetings and to not rent venues. 

The ministry has asked banks' chairmen and executives to not go on foreign travel that is not necessary, and reduce expenses on workers' travel and transportation, hospitality, stationery and development.

Additionally, expenses for yearly calendars, diaries and similar kinds of promotional activities have to be curtailed.

The government has announced Tk95,000 crore stimulus packages for industry, service and agriculture sectors. The banks will implement almost all these programmes through loan distribution.