BB spurs banks on CSR

Bangladesh Bank Governor Atiur Rahman speaks at a programme on CSR Presentation Meeting, organised by Management and Resources Development Initiative (MRDI), at Dhaka Sheraton Hotel yesterday. Chairman of Association of Bankers Bangladesh K Mahmood Sattar, extreme right, is also seen.Photo: STAR

Banks and other corporate entities should not look out for returns for their corporate social responsibility (CSR) activities, as government facilities to reward them are already in place, the central bank governor said yesterday.
“We, from the central bank, give extra marks for the management component of the CAMEL rating, which increases their ranks. Besides, while giving permission to open new branches, we also look at their CSR activities and give priority to those with commendable records,” said Atiur Rahman.
“So, the banks should not wait for tax rebate for their CSR activities. You have to continue your work for development of the society even if you don't receive any returns, as such activities bring many other benefits apart from tax rebate."
The Bangladesh Bank (BB) gover-nor was speaking at the 'CSR Presentation Meeting' at Dhaka Sheraton Hotel in Dhaka. Management and Resources Development Initiative (MRDI), an advocacy group, organised the meeting.
K Mahmood Sattar, chairman of Association of Bankers Bangladesh Ltd (ABBL), said some banks are making CSR contributions in structured forms for years now, while others in not-so-structured manners.
“We are spending money for society's welfare and the amount spent is increasing every year. But we need to spend in a constructive and focused way to make the contribution effective.” He said the corporate houses should be given more incentives.
Mohammed Nurul Amin, chief executive officer of NCC Bank, agreed. He said banks should be given more incentives like tax rebates to encourage them to undertake more CSR activities.
Md Aminur Rahman, member of National Board of Revenue (NBR), said CSR is never a one-way issue. By spending on the welfare of society, the banks and other corporate houses are helping to build a society and develop skill manpower that will in turn help them in the long run.
The central bank governor said the government has widened the scope for CSR activities by selecting 22 areas for interventions.
He said CSR increases market share for the banks by creating a positive image, widening their clientele base, bolstering employee moral and reducing enterprise risk. “It's a new branding technique.”
The governor said there are many areas in Bangladesh where state intervention does not reach out, giving the banks an area where they can extend their hands. “There are also areas where markets have failed. So, you can tap those areas."
He said CSR could be a way to help the country achieve inclusive growth, reduce poverty, bridge market failure and lift the deprived and under-developed segment of the country.
The government will play the role of a coordinator, as it strives to make banks more humane, he said.
Bankers also pointed out some flaws in the NBR circular on CSR, and corrective measures.
Moazzem Hossain, editor of The Financial Express, moderated the event, while Shitangshu Kumar Sur Chowdhury, executive director of BB, also spoke.
MRDI Executive Director Hasibur Rahman made presentations on six potential areas where CSR interventions could be enforced.