Make banking data available for clients

Banks and non-bank financial institutions (NBFIs) should make their data available for clients so that they can verify the actual performance of every lender, analysts said yesterday.

Weak lenders are showing reluctance to provide their financial data to clients, which is not a good practice at all.

These remarks came at a webinar during the launching of the third edition of "Banking Almanac: Banks and Financial Institutions of Bangladesh 2018 and 2019".

The banking almanac on banks and other financial institutions in Bangladesh has been compiled and published since 2016.

The almanac is a research project of the weekly Shikkha Bichitra.

Hossain Zillur Rahman, a former Adviser to a caretaker government, said transparency was highly important for the banking sector as it usually plays a vital role in keeping the economic wheels of the country turning.

There are many dimensions of corporate governance and one of them is to ensure available financial data for commoners.

"Many lenders typically show less interest in providing their data to the common people," Rahman said.

But the almanac will help investors, both local and foreign, and researchers know the actual picture of respective lenders in the country.

Besides, the book will also create pressure on banks and NBFIs to release their data accurately, he added.

Salehuddin Ahmed, a former Bangladesh Bank governor, chaired the event.

Although the central bank often issues banking policies in line with global standards, it faces pressure from different quarters to revise its initiatives, according to Ahmed.

"So, Bangladesh Bank should maintain its stance, strictly ignoring the pressure in order to make the banking sector vibrant," said Ahmed, also chairman of the board of editors of the banking almanac.

"The present edition of the almanac is a rich updated source, in one volume, with information on our banks and financial institutions, which are contributing to a wide range of economic activities -- trade, commerce and CSR practices," he added.

Ahmed also lambasted some banks due to their reluctant attitude towards the book.

Md Nazrul Huda, a director of Bangladesh Bank, said production of such an almanac was a regular occurrence in many other countries. However, local lenders are yet to perceive the book's importance.

"The book depicts the information of every bank, which will be helpful for individuals, foreigners and investors," he said.

Researchers can also take their required information from the almanac as well, added Huda, also a former deputy governor of the central bank.

Mohammed Nurul Amin, former managing director of Meghna Bank; Mominul Islam, managing director of IPDC Finance; and Jamaluddin Ahmed, a former chairman of Janata Bank, also addressed the event.