BB Governor Reflects on Progress and Challenges in Finance

Bangladesh Bank Governor Dr. Ahsan H. Mansur

Dr. Mansur highlighted significant strides in the development of Bangladesh's banking sector, noting that it has made considerable progress over the years. However, he also emphasized the need for a candid self-assessment of the sector’s shortcomings. "While the banking sector has undeniably advanced, we must also recognize the areas where we have fallen short in terms of progress. There is more to be done to elevate the entire financial system," he stated.

The Governor made it clear that no single entity or group could be blamed for these challenges. "All of us have contributed to the sector’s development from our respective positions, with integrity and commitment. Still, there may have been deviations along the way, and it’s time for a thorough self-analysis," he added.

A key point in Dr. Mansur’s address was the reluctance of banks to invest in emerging and non-traditional sectors, such as Small and Medium Enterprises (SMEs), climate financing, and green financing. "There is capital available, but it is not being deployed effectively. Financial institutions often lack the enthusiasm or willingness to take risks in these sectors," he explained. "We must change our mindset to unlock the potential of these new areas."

He expressed optimism about the future, calling on financial institutions to play a more active role in funding these vital and evolving sectors. "The financial institutions must step up to support the emerging industries that will shape the future of our economy," he added.

Dr. Mansur, who also serves as the Chairman of the BIBM Governing Board, urged BIBM to focus on the emerging challenges facing the banking sector, including climate financing, green financing, and the impact of technological innovation. "Such institutions are vital for the development of our banking sector. BIBM has already made significant contributions to the development of human resources in this field, which is essential for the sector's continued growth," he noted.

In his remarks, the Governor also encouraged BIBM to expand its influence internationally. "To further enhance the financial sector, BIBM should look to attract foreign students and broaden its reputation on the global stage," he said.

BIBM Director General Dr. Md Akhtaruzzaman presided over the inaugural session, while key figures from the banking sector, including Association of Bankers Bangladesh (ABB) Vice Chairman and City Bank Managing Director SM Mashrur Arefin, Organizing Committee Chair Dr. Shah Md Ahsan Habib, and Member Secretary Dr. Mohammad Tazul Islam, also spoke at the event.

Founded in 1974, BIBM has played a crucial role in training and educating bank officials, particularly focusing on improving the leadership and management capabilities within Bangladesh’s banking sector. Over the years, it has expanded its scope to include specialized training for mid- and senior-level executives, strengthening the human capital of the financial sector.