Banks will have to focus on governance

Banks will have to focus on governance in lending as they may face pressure from influential political quarters for loans soon after the expiry of the moratorium period and a rebound of the economy.

Managements will have to be more professional and efficient to handle the critical crisis.

Bankers should now divide the existing defaulters into different categories e.g. ones who are willing to repay loans, ones who are genuinely defaulters, and ones who are habitual defaulters. They will treat their borrowers according to the category they fall under.

In the case of stimulus loans, banks should put heavy pressure on borrowers to pay back money soon after the end of the moratorium period.

The Bangladesh Bank has already provided regulatory forbearance till December this year, which can be extended to next year on a case-by-case basis instead of offering the facility to all.

Dr Salehuddin Ahmed, former Governor at the Bangladesh Bank