BB directs banks to better SME loan services

Posted by BankInfo on Fri, Dec 21 2012 11:01 am

Bangladesh Bank has directed all the banks to better their SME service by taking steps such as skill development of the officials and displaying the SME credit policy at every branch across the country.

In a letter Thursday, the central bank’s SME and Special Programmes Department issued the directive to the banks’ managements.

The directive came after a Bangladesh Bank investigation found that the small and middle entrepreneurs were getting confused about SME credit policy as they were not receiving proper service from the banks’ officials concerned. Such situation was the result of lack of inefficiency among the officials in handling SME loans disbursement, the investigation observed.

In some banks, personal or consumer loan accounts were being logged with those of SME loans, leading the SME people to get confused, the central bank’s letter said.

Bangladesh Bank’s SME department said appropriate training, supervision and monitoring by respective banks’ managements could improve SME loan service.

It, however, said: “SMEs are getting momentum due to relentless endeavors of the central bank and the banks.”

The central bank department, in a separate letter to the branches of different banks, said that the banks could use several refinancing funds of Bangladesh Bank, JICA and ADB to promote SMEs.

News: The Daily Sun/Bangladesh/21th-Dec-12