SDGs

Regional lending gap threatens SDGs: Study

MNA Business Desk: The big regional lending gap emerged one of the major barriers to the country’s financial institutions (FIs) in achieving SDGs (sustainable development goals), according to a study released on Sunday.

The study report of the Bangladesh Institute of Bank Management (BIBM) titled “Achieving SDGs in Bangladesh: The role of banking sector” found almost 85 per cent of the banks’ advances are concentrated only in Dhaka (66.18%) and Chattogram (18.80%) in 2017.

Six other regions are getting 0nly 20 per cent of the overall loans which experts term lending inequality, not suitable for achieving SDGs by 2030.

Of the regions, Barishal (1.27 %) received the lowest volume of loans while Khulna, Rajshahi, Rangpur, Mymensingh and Sylhet got 4.10 per cent, 4.03 per cent, 2.41 per cent, 1.62 per cent and 1.59 per cent respectively.

Other factors like the growing volume of NPL (non-performing loans) coupled with the declining trend of small and medium enterprise (SME) financing also pose a threat to establishing a sustainable financial sector in the country, reported news agency.

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