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Bank branches should be geographically, evenly distributed: Experts


Bangladeshpost
Published : 30 Sep 2019 08:48 PM | Updated : 06 Sep 2020 01:25 AM

Staff Correspondent

"The network of the branches should be geographically as diversified and evenly distributed as possible keeping in mind the viability of the branches for promoting financial inclusion and reducing rural –urban disparity and to achieve SDG", experts opined in a BIBM seminar recently.

The seminar was held at the Bangladesh Institute of Bank Management (BIBM) on September 24 at BIBM auditorium. 

Dr. Prashanta Kumar Banerjee, Professor & Director (RD&C) of BIBM delivered welcome address with Md. Nazimuddin, Executive Director of Bangladesh Bank and Director General of BIBM in the chair. A paper titled “Opening New Branches of Banks: Rationality and Reality” was presented in the seminar by Md. Mohiuddin Siddique, Professor and Director (Dhaka School of Bank Management) of BIBM on behalf of research team. 

S.M. Moniruzzaman,  Chairman of BIBM Executive Committee and Deputy Governor of Bangladesh Bank was present in the seminar as the chief guest while Barkat-e-Khuda, Dr.  Muzzafer Ahmed Chair Professor of BIBM & Former  Professor of Dhaka University; Helal Ahmed Chowdhury, Supernumerary Professor of BIBM & Former Managing Director of Pubali Bank Limited; Md. Yasin Ali, Former Supernumerary Professor of BIBM;  Md. Maksudur Rahman Sarker, Professor of Dhaka University spoke among others at the event.

Deputy Governor said, Bangladesh Bank has already undertaken a few initiatives (Such as guidelines and directives) to streamline the branch opening practices of banks. Opening a bank branch is mainly a profit-centered issue for a bank but it is more than that for the regulatory body. Bangladesh Bank ensures a prudent combination between the rural and urban ratio of branches to promote balanced economic development in the country. 

He also said, Bangladesh bank also regularly instructs banks to keep the cost of opening bank branch or business centers at low level. If the set-up cost of a branch is low, it helps to reach break-even point earlier. Besides, Bangladesh bank conducts on-sight inspection of branches on a regular basis. 

But, ultimately, the success of a new branch depends on the proper analysis of a bank before launching a new branch including the capacity of a bank to manage a large network of branches, he added

Barkat-e-Khuda, Dr.Muzaffer Ahmed Chair Professor of BIBM & Former  Professor of Dhaka University said, national economic point of view, the network of the branches should be geographically as diversified and evenly distributed as possible keeping in mind the viability of the branches for promoting financial inclusion and reducing rural –urban disparity and to achieve SDG.

In the concluding speech, Director General of BIBM said, output of the study along with opinions and observations made today will help BB to take future actions.