Government Cautionary on Increasing Savings Certificate Interest Rates to Protect Bank Liquidity: Finance Advisor

Interim government's Finance Advisor, Dr. Salehuddin Ahmed, stated that increasing the interest rates on savings certificates could lead to a liquidity crisis in banks. He made this remark today, Saturday, in response to questions from journalists after a consultation meeting with government officials at the Nabinagar Upazila Parishad Auditorium in Brahmanbaria. In his view, higher profits would encourage people to withdraw money from banks and invest in savings certificates, posing a challenge to the banking sector.

Addressing the situation of struggling banks, Dr. Salehuddin Ahmed informed that Bangladesh Bank is working on their rehabilitation. He cited Islami Bank as a successful example, where depositor confidence has begun to return. For other weak banks, the 'Bank Resolution Act' has been introduced. The primary objective of this act is to ensure the government's firm commitment to returning depositors' money. He emphasized, "No one's money will be lost," though in some cases, it might take a bit longer to recover the funds due to illegal withdrawals by some individuals. He commented that such incidents are rare globally.

The Finance Advisor also mentioned that the government is active in resolving the ongoing issues at the National Board of Revenue (NBR). He stated that discussions are underway with the NBR, and the government will take all necessary steps to find a solution. A five-member strong committee has already been formed for this purpose.

To attract foreign investors, the government has undertaken a coordinated initiative. Dr. Salehuddin Ahmed said that the government is ensuring investors don't have to repeatedly visit various offices for business purposes. Efforts are being made to centralize the process of obtaining various clearances to make the investment process easier and faster.

During the event, Brahmanbaria Deputy Commissioner Mohammad Didarul Alam, Nabinagar Upazila Nirbahi Officer Rajib Chowdhury, Nabinagar Circle Additional Superintendent of Police Piyash Basak, and other local officials were present with the Finance Advisor.