BB sets target to achieve inclusive growth

The central bank yesterday unveiled a new five-year strategy aiming to achieve inclusive growth and price stability, fortify supervision and push for sustainable development.

Bangladesh Bank Governor Atiur Rahman disclosed the plan for 2015-2019 at a programme at Bangladesh Bank Training Academy in Dhaka yesterday, the banking regulator said in a statement.

“We have formulated the plan with importance on monetary policy.”

This is the second time the central bank published this kind of strategic paper. In 2009, it published the first strategic paper for 2010-2014. Despite various challenges, the central bank has achieved 94 percent of the targets set in the first paper, according to the statement.

The areas the new plan has prioritised are: balanced and coordinated monetary policy; supervision and regulation for ensuring financial stability, and optimisation of human capital.

It also prioritised promoting more liberalised foreign exchange regime; socially responsible financing and inclusive growth; and enterprise resource management, effective communication and image building. The plan is the result of the evaluation by non-bank financial institutions, heads of various domestic and international organisations and ordinary bankers of Bangladesh Bank activities in the last five years and their expectation from the central bank in the next five years.

Besides, it has taken into consideration the sustainable, eco-friendly and inclusive economic growth, capacity building of the financial sector to withstand shocks and keeping active financial intermediation process.

The new plan has 14 goals. Some 105 objectives, 310 action plans and 395 key performance indicators have been fixed to achieve the strategic goals, the governor said.

The first strategic plan had set a target to transform Bangladesh Bank into a modern, far-sighted and humane central bank. “It is high time to assess how much we have succeeded and failed in this effort,” Rahman said.

He said the central bank formulated participatory monetary policies, modernised payment system and enhanced digitisation and strengthened supervision.

Besides, financial inclusion programmes have been taken to include the low-income people in the financial sector.

Financing has increased in the agriculture, SME and environment-friendly sectors. People got the chance to open bank account at Tk 10, sharecroppers have got credit.

“The economy has already started to benefit from these initiatives. Positive changes are being seen in all indicators in the financial sector.”

He said there is no scope for complacency. “We have to accept policy plans to maintain and advance the progress further.”

Deputy governors Nazneen Sultana, Abu Hena Mohd Razee Hassan and Shitangshu Kumar Sur Chowdhury also spoke at the event.