Bangladesh does not need funds from the International Monetary Fund (IMF) if it can generate adequate revenue, Bangladesh Bank Governor Ahsan H Mansur said today. 

"The country's financial position is strong. The only weak area is the revenue budget, and the solution lies in improving revenue generation," he said.

He made the remarks at a roundtable titled "Path to Recovery for the Banking Sector", organised by The Business Standard at its premises in the capital. 

This fiscal year, Bangladesh has received nearly $29 billion in remittances and $50 billion in export earnings, said the governor.  

Read more

Are rising exports, remittance the cure?

From these two sources alone, the total stands at around $80 billion. After deducting payments for letters of credit (LCs), the country still has $10 billion in hand, he said. 

"Why should I have to go and beg for money?" he asked. 

"I still say publicly that we don't need IMF money, but the right policies. If our policies are correct, we won't need foreign funds; we can manage with our resources." 

The governor said Bangladesh has a good relationship with the IMF, which will continue. "I am an IMF product," he added. 

He also addressed concerns over the low deposit growth in the country. "Deposits are not increasing despite the rise in interest rates. The ultimate solution for the banking sector lies in deposit growth," he said. 

"To solve the issue of non-performing loans (NPLs), deposit growth needs to be high. When there is an adequate inflow of deposits in the banking sector, it will help resolve other problems." 

Bangladesh Bank will conduct fit and proper tests for bank directors to assess their suitability. Those found unfit will be asked to resign, he said. 

Read more

Why consolidation is crucial for Bangladesh’s banking future

"We don't want to see housewives, daughters, and sons in the board who have no proper experience," he added. 

The central bank will also prepare a panel of independent directors so that banks can include them on their boards.

The government has sought recommendations from the Association of Bankers, Bangladesh (ABB) regarding the criteria for bank directors, he said.