Banks should finance innovative agro products

Banks should extend financing to new products of the agro-based industrial sector as some entrepreneurs have recently created success stories by investing in it, according to a research.

Bank and non-bank financial institutions (NBFIs) should take steps to encourage the innovative entrepreneurs in both rural and urban areas for the sake of the country’s growth, it said.

The research paper titled “Impact of Bank Based Rural and Urban Financing on Economic Growth of Bangladesh” was presented at a seminar organised by the Bangladesh Institute of Bank Management (BIBM) at its office in the capital yesterday.

Some entrepreneurs have already got involved in producing and exporting unconventional items, such as those made from crocodiles, crabs, turtles, worms, ostriches, frogs and snakes.

“This is encouraging and lenders should offer financing to the products,” Mohammed Sohail Mustafa, associate professor of the BIBM, while presenting the paper.

Distribution of credit among different private sectors also has a significant impact upon economic growth, said SM Moniruzzaman, deputy governor of the central bank.

Several studies reveal that commercial banks’ lending activity helps improve efficiency and rational distribution of resources among various entities, he said.

The central bank has taken initiatives to give a boost to financial inclusion, which has already brought some positive impacts for the economy, he said.

Prof Barkat-e-Khuda of the BIBM said all stakeholders need to work together for getting expected results for the financial sector. 

Helal Ahmed Chowdhury, supernu-merary professor of the BIBM, Md Ali Hossain Prodhania, managing director of Bangladesh Krishi Bank, and Mahfuzul Hoque, a professor of the University of Dhaka, also spoke.