In his budget speech for the fiscal year 2023-24, Finance Minister AHM Mustafa Kamal announced the launch of a digital bank. He said that the bank would be established to expand and accelerate efforts at financial inclusion.
A committee of Bangladesh Bank has been working on the establishment of the digital bank. The committee has completed the outline of the bank and the minister hopes to launch it in the next financial year.
The digital bank will be a fully online bank that will offer a variety of banking services, including savings accounts, loans, and investments. It will be open to all citizens of Bangladesh, regardless of their income or location.
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The launch of the digital bank is part of the government’s efforts to modernize the banking sector and make it more accessible to all Bangladeshis. The government believes that the digital bank will help to reduce the number of fake and anonymous loan in the banking sector and make it easier for businesses and individuals to access credit.
Credit Scoring System to be Introduced
The finance minister also announced the introduction of a credit scoring system. The system will use artificial intelligence and machine learning technology to assess the creditworthiness of borrowers. This will help to reduce the risk of lending to borrowers who are unable to repay their loans.
The credit scoring system will be voluntary for borrowers. However, the government expects that most borrowers will choose to participate in the system, as it will make it easier for them to obtain loans.
The finance minister also spoke about the issue of anonymous loan. Anonymous loan are loans that are taken out in the name of someone other than the true borrower. These loans are often used for illegal or fraudulent purposes.
The government is working to crack down on anonymous loan loans. The central bank has recently tightened the rules on loan approvals. The government is also working to improve the coordination between different government agencies to track down anonymous borrowers.
Digital Banking and Credit Scoring
The launch of the digital bank and the introduction of the credit scoring system are two important steps in the government’s efforts to modernize the banking sector. These initiatives will help to make the banking sector more accessible to all Bangladeshis and reduce the risk of lending to borrowers who are unable to repay their loans.