Photo: Collected

DHAKA, Aug 24, 2026 (BSS) - A seminar on the role of commercial banks in financing start-ups was held today at the Bangladesh Institute of Bank Management (BIBM) Auditorium in the city with experts calling for innovative financing mechanisms and stronger institutional coordination to bridge the funding gap for emerging businesses.

The seminar, titled "Start-up Financing in Bangladesh: Can Commercial Banks Play a Significant Role?", was organised by BIBM to examine the challenges and opportunities in start-up financing and explore ways to enhance the role of commercial banks in supporting the country's emerging start-up ecosystem, said a press release.

Dr Md Habibur Rahman, Chairman of the BIBM Executive Committee and Deputy Governor of Bangladesh Bank, attended the seminar as the chief guest.

In his inaugural remarks, he stressed the importance of developing appropriate financing facilities for start-up projects and creating a supportive financial environment for innovative and emerging enterprises.

BIBM Professor and Director (Research, Development & Consultancy) Md Shihab Uddin Khan delivered the welcome address.

A keynote paper was jointly presented by a BIBM research team comprising Associate Professor Dr Md Mosharref Hossain, Associate Professor Dr Shamsun Nahar Momotaz, Assistant Professor Tahmina Rahman and Lecturer Benazir Ishaque, along with Md Mohsinur Rahman, EVP and Head of SME Banking at Prime Bank PLC.

The keynote presentation was followed by an open discussion.

The session was chaired by Dr Md Ezazul Islam, Director General of BIBM, who also delivered the concluding remarks.

Dr Islam said start-ups often require a different approach to financing as their value may not be adequately reflected in conventional collateral or current cash flows. Their potential could instead depend on ideas, technology, data, human capital, intellectual property and future growth prospects.

He, however, stressed that adopting a different approach to start-up financing should not mean compromising prudent banking practices.

"Banks need to strengthen their capacity to assess start-up businesses through better financial and transaction data, specialised appraisal expertise, relationship-based banking and a clearer understanding of different stages of the start-up life cycle," he said.

Dr Islam said appropriate risk-sharing mechanisms could enable commercial banks to play a greater role in start-up financing.

He identified credit guarantees, refinancing facilities and co-financing arrangements, along with stronger linkages among banks, incubators, investors and public-sector programmes, as important mechanisms to help promising start-ups bridge the gap between innovation and bankability.

He also emphasised that building a sustainable start-up financing ecosystem would require coordinated efforts by commercial banks, Bangladesh Bank, government agencies, investors and entrepreneurs.

"No single stakeholder can address the financing gap alone," he said.

The BIBM Director General said the ultimate objective should be to establish a financing pathway through which promising start-ups could gradually move from idea-stage support and risk capital to sustainable commercial financing as their business models mature.

Designated discussants included Dr Mohammad Tazul Islam, Professor and Director (Training), BIBM; Syed Abdul Momen, Additional Managing Director and Head of SME Banking, BRAC Bank PLC; Nawshad Mustafa, Director, SME & Special Programmes Department, Bangladesh Bank; Md Monjur Mohammad Shahriar, Project Director, Digital Entrepreneur and Innovation Eco-System Development Project, ICT Division, Ministry of Posts, Telecommunications and Information Technology; and A.K.M. Fahim Mashroor, Chief Executive Officer and Co-founder of bdjobs.com Ltd.