Only 39 percent of rural loan is disbursed directly by banks while the rest is disbursed by NGOs and others at an interest rate of 25-120 percent, which does not give quality access to credit.
Ali Hossain Prodhania, managing director of Bangladesh Krishi Bank, made this statement in a seminar titled “Impact of Bank Based Rural and Urban Financing on Economic Growth of Bangladesh” organised by Bangladesh Institute of Bank Management (BIBM).
Speakers at the seminar acknowledged satisfactory positive impact of bank-based rural and urban finance on the economic growth of Bangladesh although it has had no or reverse impact in many countries.
"Positive impact is as expected, we need to see how much effective this impact is. Also, surveillance in qualitative access to the loan is as important as in the quantitative side," said SM Moniruzzaman, chairman of BIBM Executive Committee and deputy governor of Bangladesh Bank, in his inaugural speech as chief guest.
He also said, “Provide credit to the new rather than lending consecutively to the same recipients.”
Experts Barkat-e-Khudha, Md Nazimuddin, Helal Ahmed Chowdhury, among others, took part in the seminar.