The developmental central banking helped Bangladesh overcome both global financial crisis and the ongoing pandemic as it tried to pursue multiple targets with multiple instruments.
Dr Atiur Rahman, former governor of Bangladesh Bank said this at a special discussion meeting organised by the Nepal Rastra Bank at the hotel Marriot in Kathmandu on Friday, according to a press release.
Chaired by NRB Governor Maha Prasad Adhikari the programme was also participated by Dr D Subbarao, former governor of Reserve Bank of India.
This programme was organised by Nepal Rastra Bank to share knowledge on central banking with its high officials including Deputy Governors, Board Members, Executive Directors and Directors, the press statement added.
Atiur Rahman further said that the central banking in Bangladesh is well known for its innovative programmes like financial inclusion, promotion of agriculture and SMEs, women empowerment through refinance, green finance and supporting the government with enough money by expanding its own balance.
Its environment, social and governance risk management policy has been pioneering in the world to address climate change, added the former banker.
While doing all this, he continued, it never forgot its main job of inflation control as well.
"The digital financial services through mobile financial services and agent banking proved critical in the early recovery of Bangladesh from the pandemic."
The sustainable finance policy of Bangladesh's central bank will surely reinforce longer-term climate-friendly initiatives of the government, said Atiur Rahman.
He said the central banking in Bangladesh has proved that developing countries must avoid the policy of 'one size fits all' and broaden its focus beyond inflation targeting to support broad-based development processes. For that matter the drive for digitisation must continue along with remaining committed to 'learning by doing approach' which has been paying Bangladesh so well
Dr Subbarao said that Bangladesh central banking has been led by its leadership with heart and not only head in promoting innovations. While talking about his own experiences, Dr Subbarao emphasised on credible, down to earth and precise communication by the central bankers to give the right signal to the markets. He also favored financial inclusion and making the central bank a knowledge institution.
The Nepalese Central Bank Governor welcomed knowledge sharing among the central bankers particularly in the wake of the pandemic which has created so many challenges for the economy. He also called for more connectivity and bilateral cooperation in the subregion.