Bangladesh Bank Issues Directive for Referendum Support
Bangladesh Bank has instructed all banks to display two banners at each branch to promote public awareness and encourage a “yes” vote in the upcoming referendum. This initiative is part of wider efforts to enhance stability in the banking sector and foster public trust.
The decision came during a meeting led by Governor Ahsan H. Mansoor at the Bangladesh Bank on January 11. Attendees included vice presidents and four managing directors from various private banks.
An individual present at the meeting mentioned that the Office of the Chief of Staff has already provided guidance on the banners. Alongside this, the bank suggested that institutions allocate part of their Corporate Social Responsibility (CSR) funds to support NGO-led campaigns aimed at raising awareness about the referendum.
Governor Mansoor also stressed the importance of managing risks proactively as microloans and digital nanoloans expand, urging banks to ensure that new loans do not lead to future defaults.
Additionally, there are plans to enhance school banking initiatives, requiring branch managers to visit schools at least twice a year to promote account opening for students.
The meeting also noted an increase in foreign exchange reserves and anticipated remittance flows in light of Ramadan and Eid al-Adha, attributing this to ongoing efforts to attract foreign investment and streamline approval processes for overseas offices.
There is also work underway to amend the Foreign Exchange Regulation Act.
Regarding interest rates, Bangladesh Bank stated that while a reduction isn’t feasible at this moment due to persistent inflation, they are exploring options for lowering rates in the near future.
After the meeting, Citi Bank Managing Director Mashrul Arifin emphasized the importance of stability in the banking sector and public confidence as the referendum approaches. He noted, “Bangladesh Bank has provided clear directives to continue reducing non-performing loans and mitigate new risks. We are fully committed to these measures.”
