Bangladesh Bank (BB) Governor Fakhruddin Ahmed has said lack of access to credit is considered one of the most serious impediments to the growth of the small-scale industry sector, which is vital for employment generation in the country.
"The main reasons for credit constraints are the complex and cumbersome lending procedures and collateral requirements," the central bank chief said while releasing late last week guidelines on small-scale industry financing.
He also blamed the inherent risk of non-performing loans in the absence of extensive, close supervision for lack of credit flow.
The central bank has asked all commercial banks to ensure proper utilisation of loans for small-and medium-sized enterprises (SMEs) to avoid any financial risk, official sources said.
It also directed the banks to develop their own mechanism for effective monitoring of the utilisation of loans, the sources added.
