Bangladesh is the best place i the world for farming. the national economy can be radically updated by short time only depanding the farming .A good news for Bangladesh from the Banking policy for farming :Source : (Reuters)

Bangladesh presses foreign banks to lend to farmers :Source : (Reuters)

Bangladesh’s central bank is planning to take “punitive” measures against several foreign banks in the country for ignoring directives to lend money to farmers, a senior official said on Tuesday.

Bangladesh’s central bank asked banks last year to provide up to 95 billion taka ($1.4 billion) in farm loans in the 2008/09 fiscal year, 14.5 percent higher than the previous year’s level, following sharp rises in global food prices. The aim was to reduce dependence on food imports.

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The central bank official, who asked not to be identified, said a warning letter had now been served on banks that had not made any loans to farmers.

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“Several foreign banks did not disburse any credit for farming during the first six months of the current fiscal year to December 2008,” the official told Reuters.

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“Those banks will have to show reasons why they have failed to comply with the directive on mandatory disbursement of farm credit. If the explanation is not satisfactory they will have to face punitive measures,” he added. “The banks may be fined or may be asked to deposit a certain amount with the central bank.”

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The official said foreign banks had lent only 1.4 billion taka ($21 million) to the farm sector during the period.

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The nine foreign banks operating in Bangladesh are Standard Chartered Bank, Citi Bank NA, Commercial Bank of Ceylon, National Bank of Pakistan, Hong Kong and Shanghai Banking Corporation (HSBC), Bank Al-Falah, Habib Bank, State Bank of India and Woori Bank.

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One official of a foreign bank confirmed it had received a warning but said it had not been able to make such loans because it had no rural branch.

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“Limited presence significantly constrains the ability to reach the beneficiaries of the agricultural credit scheme,” the official said, adding the bank respected the central bank’s instructions and would try to comply with them.

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The central bank official said banks without rural branches could lend to farmers in collaboration with other banks and non-government organisations operating in rural areas.

news http://in.reuters.com/article/southAsiaNews/idINIndia-38185620090224

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