The financial services sector of Bangladesh is yet to reach its full potential despite the significant advancements seen so far, according to Ahsan H Mansur, governor of the Bangladesh Bank.

"There is no single entity behind this failure. Maybe we could have worked with more dedication. Maybe there was a deviation. But nonetheless, we should self-analyse our failures," he said.

Mansur was speaking as chief guest at the golden jubilee of the Bangladesh Institute of Bank Management (BIBM) in the Mirpur area of Dhaka yesterday.

The event, presided over by BIBM Director General Md Akhtaruzzaman, opened with a discussion on the challenges and potential for financial services in the country.

The inaugural session was moderated by Shah Md Ahsan Habib, a professor at the BIBM.

Mansur said no institution can stand alone and must cooperate with others in order to succeed, with the same being applicable for financial service providers.

He also said the financial services sector is by no means small, as subsets like the banking industry are a major part of it.

Against this backdrop, he warned that the financial services sector may eventually be brought to the brink of destruction if the interests of depositors and investors are not properly protected.

Regarding opportunities in the banking industry, he said it could increase contributions towards addressing both new and existing challenges through initiatives to finance sustainable and environmental projects.

Mansur informed that while all the banks have predetermined goals in terms of investing in various sectors, most bank officials do not know how the money will actually be spent.

"Therefore, the BIBM can work to increase the understanding of bank officials on these issues," he said, adding that innovative ideas like green bonds should also be brought forward.

The Bangladesh Bank governor further said small and medium enterprises as well as emerging and unconventional industries, such as those focusing green and climate finance, are not well suited for availing financing from banks.

"Funds are being given to numerous sectors, but they are not being transferred. The people in charge of banks and other financial institutions are either not very excited about these industries or are not willing to take chances," he said.

"Here, we must adopt a new perspective," Mansur added, conveying his hope that the country's financial institutions will play a stronger role in funding the non-conventional and new sectors.

Mansur, also chairman of the BIBM governing board, urged for addressing new challenges in the banking sector, such as that involving climate financing, green financing, developments in financial services and technological innovations.

Noting that such institutions are much needed for developing the banking industry, he said the BIBM has been able to play an important role in building human resources for this segment.

Furthermore, Mansur asked the BIBM to focus on attracting foreign students and spreading its name in the international arena.

Masrur Arefin, vice chairman of the Association of Bankers Bangladesh, said the banking industry must move forward with the times.

"We need to increase our understanding on various topics, such as artificial intelligence, machine learning and blockchain," he added.

Arefin, also the managing director of City Bank, further said the country's digital banking services have reached a certain threshold, as every bank now provides digital support to their customers.

He expressed hope that Bangladesh Bank will look into the extent of digital lending services provided by banks.