Staff Correspondent

Finance Adviser Dr. Salehuddin Ahmed on Thursday called on bank owners and management to conduct thorough scrutiny of loans before lending, urging caution to avoid past mistakes.

“I requested them [BAB] to approve loans after proper scrutiny under the current circumstances so that there is no deviation like in the past,” he told reporters after meeting with a delegation from the Bangladesh Association of Banks (BAB), led by newly elected chairman Abdul Hai Sarkar, at the Finance Division Conference Room in the Bangladesh Secretariat.

Dr. Salehuddin emphasized the need for banks to prioritize inclusive lending, especially to cottage, micro, small, and medium enterprises (CMSMEs), which often face difficulties in securing loans.

"Please also ensure good governance as well as transparency and accountability in your operations," he urged the BAB leaders, stressing the importance of maintaining integrity in banking practices.

During the meeting, the BAB delegation—comprising mainly private commercial bank representatives—discussed ongoing challenges and potential reforms in the banking sector. Dr. Salehuddin acknowledged that the sector is currently grappling with loan disbursement issues and liquidity shortages.

"We’ve assured them that we’ll talk with the Bangladesh Bank in this regard," he said, indicating the government's commitment to addressing these challenges.

The BAB leaders also requested that their input be considered in any future banking sector reform initiatives. In response, Dr. Salehuddin assured them, “We’ll do that in consultation with them,” underscoring the government's intention to work collaboratively with private banks on policy reforms.