Finance Minister AMA Muhith on Saturday admitted that the government is also responsible for the increase in the amount of classified loans in banks and financial institutions, reports UNB.
"Classified loans are very much high in the country. Providing loans without verifying the refund capabilities of borrowers is behind the increase in such loans. We, the government, are also responsible for this," he said while inaugurating the annual conference of Sonali Bank Ltd at the Institution of Diploma Engineers, Bangladesh in the capital.
Underscoring the need for decreasing the default loans, Muhith said, "Before sanctioning any loan, we must verify the details of borrowers as well as projects where the loan money will be invested."
Mentioning that he took a plan in 2009 to turn Sonali Bank into an ideal bank, he said, "But it didn't happen. It won't be possible by 2019 either. However, I believe it is possible."
The minister also confessed that there are enough weaknesses in the country's banking sector.
Of the total 1,211 branches of Sonali Bank, 181 are loss-making which is not accepted, he said, stressing the need for relocating those branches.
State Minister of Finance MA Mannan and Bangladesh Bank Governor Fazle Kabir, among others, spoke at the conference with Sonali Bank governing body Chairman Ashraful Moqbul in the chair.