A majority of bankers considers late shipment to be the top constraint in financing in the country’s readymade garment sector, according to a survey.
The finding, by BIBM, was revealed at a workshop titled ‘Trade facilitations in RMG by banks: risks and mitigation techniques’ on Sunday.
The workshop was organised by Bangladesh Institute of Bank Management (BIBM) and was held at its auditorium in the city.
The findings said 66 per cent of the surveyed bankers considered late shipment as the most critical challenge in financing in the country’s RMG sector.
The BIBM survey also disclosed some 53 per cent and 42 per cent have been identified late presentation of documents and non re-partition of fund against contract as risks for the same.
“Late shipment and failure to export or late presentation are identified as the most critical challenges of the RMG sector of the country,” said BIBM professor and director (training) Shah Md Ahsan Habib while presenting the paper.
He suggested banks for developing skilled manpower in handing RMG sector, educating customer on trade regulations and enhancing due diligence for transferable letter of credits (L/Cs).
Mr Habib’s recommendations for traders included creating awareness and developing skills, developing negotiation skills in handling disputes, greater coordination among regional trade bodies.
BIBM director general Toufic Ahmad Choudhury presided over the workshop. Former professor of Dhaka University Barkat-e-Khuda, BIBM supernumerary professors Helal Ahmed Chowdhury and Md Yasin Ali, Association of Bankers, Bangladesh chairman and managing director and chief executive officer of Dhaka Bank Syed Mahbubur Rahman, managing director and chief executive officer of NRB Bank Mehmood Husain, vice president of Bangladesh Knitwear Manufacturers and Exporters Association Fazlee Shamim Ehsan, among others, were present.
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