Bangladesh Bank Deputy Governor Abu Farah Md Nasser said that despite a Tk 2,000 crore credit guarantee scheme for Small, Small and Medium Enterprises (CMSME), loans of only Tk 192 crore has been disbursed so far under the facility, which he said was “disappointing”.
He said that the proper use of this credit guarantee system is crucial for the revival of CMSMEs.
Nasser said this while speaking as a keynote guest at a workshop titled “Issues and Opportunities of CMSME Loans”, organized by the Dhaka Chamber of Commerce and Industry on Saturday in the capital Dhaka.
“Although the CMSME sector is called the engine of our economy and CMSME financing is the fuel for this engine, financing in this sector is disappointing despite the various initiatives taken by the central bank,” he said. added.
Nasser also said that to achieve CMSMEs, banks should consider establishing more sub-branches across the country rather than creating bank agents, as establishing sub-branches helps reduce additional administrative costs.
“We are going through a difficult period due to the war between Ukraine and Russia and right now if we try to control interest rates by force, it could create a recession,” he said. -he adds.
The manufacturing and services sector should be given priority in obtaining loans at this time to control inflation, given the global scenario, he said.
The BB Deputy Governor urged experts to think about developing an online marketplace and blockchain as alternatives to the traditional lending system.
Bangladesh Bank has identified a total of 19 clusters, and Nasser urged all banks to lend to CMSMEs under these clusters.
Later, he said that establishing a digital bank (special focus on CMSMEs) was in the planning of Bangladesh Bank.
DCCI President Rizwan Rahman said, “The CMSME sector plays an important role in the growth of our economy, but due to the lack of political support and financial support, we cannot fully utilize this sector. Commercial banks and financial institutions sometimes perceive risks in lending to MSMEs.’
He also said that regulators should give CMSMEs better access to information and communication technology and financial assistance so that they can have the capacity to boost manufacturing and be competitive in the process of the supply chain.
Md Jaker Hossain, Director, SME and Special Programs Department, Bangladesh Bank, gave a keynote presentation.
Md Nazeem Satter, Managing Director of the SME Foundation, in his separate keynote address, pointed out that there are over 7.8 million CMSMEs across the country.
He said that banks alone are not enough to guarantee loans to CMSMEs, but alternative capacities of MFIs, NGO Foundation, Karmasangsthan Bank, BSCIC, SME Foundation should be used to disburse. loans between CMSMEs.