BB governor urges banks, FIs to spend more on CSR

Bangladesh Bank Governor Dr Atiur Rahman Saturday called upon the banks and financial institutions to expand their CSR practices to contribute more towards the country’s socio-economic development.

He also said proper human resources development is key to the country’s social, economic and technological development.

“Proper education is needed to develop human resources,” he added.

Dr Atiur Rahman said the present government considers the human resources development as an integral part for building a knowledge-based “Digital Bangladesh”.

The BB governor made the remarks while speaking at a function arranged to distribute scholarships among a number of students at Institute of Diploma Engineers, Bangladesh (IDEB) at Kakrail in the city.

National Credit and Commerce (NCC) Bank is funding the scholarship scheme for the SSC and HSC level students.

During the function, some 250 students received scholarships from NCC Bank as part of a CSR initiative by the bank.

While addressing the function, Dr Atiur said such initiatives for granting scholarships to the poor and meritorious students from across the country will play an important role for building a knowledge-based nation.

Praising the banks’ corporate social responsibility (CSR) activities across the country, the BB governor said the importance of CSR initiatives is increasing day by day.

As a social commitment, it is a pre-condition for the development of trade and commerce of the country, he added.

Since the banks are making profits from people’s contribution, the banks also should do something for the development of the unprivileged people of the society with a small portion of their profit, Atiur observed.

Bangladesh Bank is laying more emphasis on CSR activities by the banks and financial institutions, the governor said.

He said Bangladesh Bank is pledged-bound to establish itself as a “human central bank”. “We’re trying to move forward the country’s banking sector with a human face.”

Atiur said though the CSR is not mandatory for the banks, such activities are being scrutinized to determine their position as per ‘CAMEL Rating’ in order to create a competition among the banks.

He also suggested the banks to take CSR schemes under specific and well designed plan, saying that CSR activities would yield a good result for banks at the end.

The BB governor also pointed out that a major portion of brilliant students across the country are being deprived from pursuing higher education due to lack of financial solvency.

The central bank introduced a CSR rating for the country’s banking sector in 2008 to encourage the banks to contribute more to different social activities.

Banks’ CSR spending increased to Tk 3.05 billion in 2012 from Tk 410 million in 2008.

News source:

Daily Sun Bangladesh

Dated:- 4-Mar-2013