Dhaka: Access to finance continues to be the most significant obstacle in Bangladesh’s business landscape, as it remains the lowest-scoring pillar among 11 assessed in the Bangladesh Business Index (BBX) 2024-25. Despite a 12-point improvement from the previous year, the score stands at 40.07 out of 100, highlighting persistent challenges even amidst ongoing reform efforts. Policymakers, bankers, and business leaders gathered at a round-table discussion on Monday, advocating for a more diversified, less bank-dependent financial system to bolster the private sector.
According to United News of Bangladesh, the event titled “Access to Finance in Bangladesh: Building a More Conducive Financial System for the Private Sector,” was jointly organized by Policy Exchange Bangladesh and the Metropolitan Chamber of Commerce and Industry, Dhaka (MCCI), with support from the Australian government’s Department of Foreign Affairs and Trade. The meeting took place at the MCCI Gulshan office.
In his keynote speech, Shams Zaman, Country Managing Partner of PricewaterhouseCoopers Bangladesh (PwC), emphasized the importance of credible resolution mechanisms to rebuild confidence and extend fresh credit. He suggested that Bangladesh’s guarantee window be transformed into an autonomous, professionally managed institution to support a diversified financial system.
A panel discussion moderated by Dr. M Masrur Reaz, Chairman and CEO of Policy Exchange Bangladesh, featured insights from various sectors. Participants included Shams Mahmud, Managing Director of Shasha Denims Ltd; Syed Mohammad Kamal, President of the American Chamber of Commerce in Bangladesh (AmCham); Syed Abdul Momen, Additional Managing Director and Head of SME Banking at BRAC Bank PLC; and Andalib Mirza, Head of Multinational Wholesale Banking at HSBC Bangladesh.
Mahmud highlighted the ongoing challenges manufacturers face due to financing and cash-flow pressures exacerbated by higher gas prices. Kamal pointed out that SMEs lack the institutional access available to larger firms and called for a coordinated approach involving the central bank, judiciary, and other stakeholders. Momen stressed the need for a robust digital ecosystem to expand SME financing, noting the inefficiency of the current manual model. Mirza identified limited digital data and weak financial verification as significant hurdles, especially for non-garment firms without export records.
Participants, including representatives from banks, non-bank financial institutions (NBFIs), and development partners, stressed that banks cannot finance new projects without a reliable energy supply, underscoring the necessity of advancing gas and LNG infrastructure. They noted, however, that microenterprise lending is expanding through multiple channels with relatively low non-performing loans.
Mohammed Nurul Amin, Chairman of Bangladesh Krishi Bank, speaking as a distinguished guest, highlighted the need for differentiated policies to address regional, gender, financial, and psychological inequalities among borrowers. MCCI President Kamran T Rahman chaired the session.
The roundtable’s recommendations aim to contribute to a more inclusive and growth-oriented financial system for the private sector, calling for coordinated action among Bangladesh Bank, financial institutions, policymakers, and the private sector to enhance credit access and financial inclusion.