Monday | 13 January 2025 | Reg No- 06
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Monday | 13 January 2025 | Epaper

In The Aftermath of Regime Change

Clients’ confidence in Mercantile Bank unshaken all time: Managing Director

Published : Wednesday, 9 October, 2024 at 12:00 AM  Count : 380
Shamsul Huda
Mercantile Bank PLC Managing Director Quamrul Islam Chowdhury expressed confidence in the bank's ability to navigate through economic challenges, emphasizing that liquidity strength, market-driven interest rates and cyber security that shows the bank's strength to maintain clients trust. 

Talking to the Daily Observer he asserted that, the bank's liquidity position is secure. "We maintain a high level of liquidity, allowing us to meet both short-term obligations and long-term goals," Quamrul pointed out. This, he argues, is very critical for ensuring stability of the bank in times of economic fluctuation. 

The focus on maintaining a robust liquidity buffer has enabled Mercantile Bank to be flexible, ensuring that it can manage financial shocks without compromising customer service and their trust when many failed to meet clients demand for cash.

He said deposit flow to the bank remained unaffected even during the critical period of liquidity crisis in many other banks. Our clients' confidence remains unshaken at all time. 

Quamrul stresses that interest rates should be determined by market forces. "Capping interest rates distorts normal functioning of market," he asserts adding. "In a free market economy, lending and deposit rates should reflect supply and demand." 

He believes that the current market-driven rates are conducive to greater financial sector stability. By allowing these rates to remain flexible, Mercantile Bank can adapt to more effective shifts in the financial landscape, avoiding inefficiencies in credit allocation.

The Managing Director also highlights the increasing importance of cyber security in banking. As the sector moves further into the digital platforms, Quamrul acknowledges that cyber threats are becoming more real and sophisticated. "We are investing heavily in our cyber security infrastructure to ensure that customer data remains secure," he says. 

Strengthening security protocols has been a priority, particularly as digital banking grows. The bank's approach aims to build trust with customers by ensuring that their transactions and information are truly protected.

Another key focus for Quamrul is the management of non-performing loans (NPLs). He reveals that the bank has already discontinued directive loans, a significant contributor to NPLs in the past. "By closing this source of bad debt, we are taking proactive steps to reduce our NPL ratio," he explains. 

He further underscores the role of the Artharin Adalat, the money lending court, in recovering bad loans. "The court must be more active in helping banks recover these loans to strengthen the overall financial health of the banking sector," he adds.

Quamrul also expressed optimism about the government's efforts to containing inflation. "The interim government's advisors are highly knowledgeable and we expect inflation to stabilize soon under their leadership," he says. 

Managing inflation is critical for the banking industry, as it directly impacts lending rates and deposit growth. He remains confident that the government's current strategy will create a more favorable economic environment for the bank to operate in.

In closing remarks Quamrul reaffirms that Mercantile Bank is positioned to thrive amid the economic shifts. 

By maintaining a strong liquidity position, embracing market-driven interest rates, and investing in both cyber security and NPL management, the bank is prepared for sustainable long term growth. 

Quamrul's leadership reflects a forward-looking approach that aims to balance operational resilience with market agility, ensuring the bank's continued success in a changing financial scenario.



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