Middle East conflict may hit remittance if prolonged, says bank owners' forum

Remittance inflows to Bangladesh may suffer if the ongoing conflict between the US, Israel and Iran drags on for a prolonged period, the Bangladesh Association of Banks (BAB) said today.

“If the conflict continues for a long time and affects employment conditions in the Middle East, remittance inflows may be affected,” said BAB Chairman Abdul Hai Sarker after a meeting between BAB and the governor of Bangladesh Bank (BB) at the BB headquarters in Dhaka.

He said the extent of the impact would depend on how long the conflict persists.

The war began on February 28 after a US-Israel attack on Iran. It has widened across the Middle Eastern region over the last 10 days.

Regarding the meeting with the new BB governor, Sarker said they discussed various issues, including the development of the banking sector, policy coordination and areas of future cooperation.

The meeting also touched on the issue of reviving weak banks and further strengthening the overall banking system, he added.

“The governor’s attitude towards private banks is positive, and he is sincere about improving the banking sector,” Sarker said.

Responding to a question about the newly introduced provisioning guidelines, he said the internationally practised framework would be implemented in a way that aligns with Bangladesh’s infrastructure and economic realities.

During the meeting, participants also said the banking sector’s support would be essential in helping implement the government’s target of 1 crore jobs within 18 months. Banks could play a crucial role by financing sustainable and viable projects to help achieve the goal, they added.

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