Commercial banks need specialised appraisal expertise, relationship-based banking, and risk-sharing mechanisms to finance startups effectively without compromising prudent banking practices, experts said at a seminar on Monday.
The seminar, titled “Start-up Financing in Bangladesh: Can Commercial Banks Play a Significant Role?”, was organised by the Bangladesh Institute of Bank Management (BIBM) at its auditorium in Mirpur.
Chairman of the BIBM Executive Committee and Deputy Governor of Bangladesh Bank Dr Md Habibur Rahman attended the event as the chief guest.
In his inaugural speech, Habibur stressed the importance of formulating appropriate financing facilities and maintaining a supportive environment for emerging enterprises.
Presenting the keynote paper, a joint BIBM research team – comprising Dr Md Mosharref Hossain, Dr Shamsun Nahar Momotaz, Tahmina Rahman, and Benazir Ishaque – alongside Prime Bank EVP & Head of SME Banking Md Mohsinur Rahman highlighted the key challenges and opportunities in integrating banks into the startup ecosystem.
Chairing the session, BIBM Director General Dr Md Ezazul Islam noted that early-stage startups often lack conventional collateral or established cash flows, requiring valuation based on intellectual property, technology, and future growth prospects.
"Adopting a different approach to startup financing should not mean compromising prudent banking practices," he said.
Ezazul added that tools like credit guarantees, refinancing facilities, co-financing models, and stronger linkages among banks, incubators, and venture funds are essential to bridge the gap between startup innovation and bankability.
The seminar included open discussions featuring insights from BIBM Director (Training) Dr Mohammad Tazul Islam, BRAC Bank Additional Managing Director Syed Abdul Momen, Bangladesh Bank Director (SME) Nawshad Mustafa, ICT Division Project Director Md Monjur Mohammad Shahriar, and bdjobs.com CEO AKM Fahim Mashroor.
BIBM Director (Research, Development & Consultancy) Prof Md Shihab Uddin Khan also spoke at the event.