Dhaka, Dec. 18 -- Syed Mahbubur Rahman, former chairman of the Association of Bankers, Bangladesh (ABB), has said banks are taking short-term deposits and providing long-term loans.

He noted that because the capital market is virtually non-existent, pressure on the banking sector is increasing.

Speaking on Thursday at a seminar titled "Banking Sector Reform: Challenges and Way Forward," organised by the Economic Reporters' Forum in Dhaka's Paltan, he said: "Banks now receive deposits for three to six months. Deposits for one year or longer are almost non-existent.

"We are having to provide long-term loans using these short-term deposits. The lack of an effective capital market is increasing the burden on the sector."

The managing dire...