Bangladesh Bank Governor Dr. Atiur Rahman awarded ‘Central Banker of the Year 2015’

Congratulation to Bangladesh Bank Governor Dr. Atiur Rahman for awarded ‘Central Banker of the Year 2015’ from the Asia-Pacific region for stimulating growth and stabilising economy.


From The Banker’s website:
The Banker's Central Banker of the Year 2015 awards celebrates the officials that have best managed to stimulate growth and stabilise their economy.


Central Banker of the Year, Asia-Pacific
Dr. Atiur Rahman, Bangladesh


Dr. Atiur Rahman’s work exemplifies how central banks can play essential roles in providing capital for environmentally and socially aware development without compromising on growth or macroeconomic stability.

“Initially it was not easy. Central bankers are a bit of a conservative, sceptical bunch. They thought it was going to be a disaster,” says Mr Rahman.

He believes that supporting agriculture and small and medium-sized enterprises could avert financial crises. “In many developed countries central banks only create money [and] liquidity in the air. They don’t do much on the ground, which could stop speculative financing and increase liquidity with small deposits. Financial systems would be more stable and have diversified loan portfolios [if this happened],” he says.

One of his initiatives supports tenant farmers with no access to financial services or collateral. Bangladesh Bank lent Tk5bn ($64.7m) at bank rate to non-governmental organisation (NGO) BRAC in exchange for a guarantee, and BRAC in turn organised farmers’ loans. Some 1 million tenant farmers received loans as a result of this invitation, 55% of which are women. The project has a 99% recovery rate.

Bangladesh Bank also established a project to assist street children in June 2014. This was particularly important as without guardians, these children tend to be excluded from the financial sector. Bangladesh Bank set up a Tk2bn refinancing fund for banks to lend to NGOs, including Save the Children, which in turn set up savings accounts for the children for as little as Tk10. Some 14 million such accounts have now been opened. “When they turn 18, they will have money, and they can start small businesses,” says Mr Rahman.

Bangladesh Bank is also promoting and undertaking green financing and bank operational management. Such efforts have not distracted the bank from its core duties, however. Inflation in Bangladesh dropped from 7.5% in 2013, to 6.5% in 2014, while the central bank’s reserves have tripled to Tk22bn during Mr Rahman’s mandate.

Also, Bangladesh gross domestic product has grown by at least 6% per year in the past five years, with a standard deviation of only 0.22%.