Covid-19: Non-bank financial institutions to help revive economy

Leaders of non-banks or non-bank financial institutions (NBFIs) on Tuesday (July 14) said they would come forward to revive the country's economy in the face of ongoing Covid-19 crisis by working on liquidity crisis, enhancing internal economic capacity and supporting the bond market.

They made the remarks at an online press conference with the newly-appointed committee members of Bangladesh Leasing and Finance Companies Association (BLFCA).

Highlighting the success of the financial institutions, BLFCA Chairman Mominul Islam, also managing director (MD) and CEO of IPDC Finance Limited, said, NBFIs have been contributing to the socio-economic development of the country for the past few years.

Currently 33 financial institutions with their 28 branches and 6,358 officers are serving 255,000 customers across the country.

“By now, we have provided 7.4 percent loans to the banking sector, 13.3 percent to SMEs, 12.3 percent to industries, 45.5 percent  to depositors, and 18.4 percent to general people,” he added.

He also mentioned that the capital capacity of the institutions is 16.9 percent while the capacity of the banking sector is 11.6 percent. NBFIs are also 1 percent ahead of them in terms of growth.

BLFCA Executive Member Arif Khan, also MD and CEO of IDLC Finance Limited, said nobody wants to invest in private financial institutions due to a high rate of government treasury bills.

“In order to enhance the bond market, the government has to pay more attention to mutual funds. If the bond market develops, the banking sector will also develop,” Arif khan added.

Golam Sarwar Bhuiyan, Abu Zafar Md Saleh, vice-chairmen of BLFCA, SM Shamsul Arefin, its executive member, among others, spoke at the occasion.