Access to finance remains the most severe bottleneck in Bangladesh's business environment, scoring lowest among 11 pillars assessed under the Bangladesh Business Index (BBX) 2024-25, policymakers, bankers and business leaders said at a round-table discussion here on Monday, calling for a diversified, less bank-dependent financial system to support the private sector.
The BBX 2024-25 recorded a score of 40.07 out of 100 for access to finance, despite a 12-point improvement over the previous year, underscoring that the problem persists even as reform efforts gain traction.
The event, titled "Access to Finance in Bangladesh: Building a More Conducive Financial System for the Private Sector," was jointly organised by Policy Exchange Bangladesh and the Metropolitan Chamber of Commerce and Industry, Dhaka (MCCI), with support from the Australian government's Department of Foreign Affairs and Trade, at the MCCI Gulshan office.
Delivering the keynote, Country Managing Partner of PricewaterhouseCoopers Bangladesh (PwC) Shams Zaman said credible resolution mechanisms form the foundation for rebuilding confidence and extending fresh credit, adding that Bangladesh needs long-term capital that does not rely solely on banks.
He proposed that the country's guarantee window be turned into an autonomous, professionally managed institution to support a more diversified financial system.
A panel discussion, moderated by Chairman and Chief Executive Officer of Policy Exchange Bangladesh Dr M Masrur Reaz, brought together voices from policy, banking and industry, including Managing Director of Shasha Denims Ltd Shams Mahmud, President of the American Chamber of Commerce in Bangladesh (AmCham) Syed Mohammad Kamal, Additional Managing Director and Head of SME Banking at BRAC Bank PLC Syed Abdul Momen and Head of Multinational Wholesale Banking at HSBC Bangladesh Andalib Mirza.
Mahmud said post-pandemic and political shocks remain insufficiently addressed, with manufacturers facing severe financing and cash-flow pressures worsened by higher gas prices.
Kamal said SMEs lack the institutional access enjoyed by large firms, calling for a coordinated approach involving the central bank, judiciary and other stakeholders.
Momen said expanding SME financing requires a strong digital ecosystem, noting the current model remains largely manual and inefficient.
Andalib pointed to limited digital data and weak financial verification as major hurdles, particularly for non-garment firms without export records.
Participants, including representatives of banks, non-bank financial institutions (NBFIs) and development partners, said banks cannot finance new projects without assured energy supply, making progress on gas and LNG infrastructure essential.
They noted, however, that microenterprise lending is expanding through multiple channels with relatively low non-performing loans.
Chairman of Bangladesh Krishi Bank Mohammed Nurul Amin, speaking as distinguished guest, said Bangladesh's regional, gender, financial and psychological inequalities require differentiated policies tailored to borrowers' circumstances.
MCCI President Kamran T Rahman chaired the session.
Participants called for coordinated action among Bangladesh Bank, financial institutions, policymakers and the private sector to expand credit access and strengthen financial inclusion.
The recommendations from the roundtable are expected to feed into a more inclusive and growth-oriented financial system for the private sector.