"We have to consider every segment of cost of production to compete in the global market, and if the current rate of bank interest continues, survival in export market would become difficult, particularly after phasing out of multi fibre arrangement (MFA) this year," he said while speaking at the opening session of a workshop.

The commerce minister said although the export in January 2004 was 28 percent higher than the export of January 2003, the country's export share in the global market stands at only 0.10 percent.

The workshop on the study report titled "The Efficiency and Effectiveness of Banking and Financial Service for Exporters" was organised jointly by Ministry of Commerce and Bangladesh Export Diversification Project (BDXDP) at a local hotel.

Director of BDXDP Mohammad Abdul Karim and Chief Technical Advisor of Coordination and Development Unit of the project David Holbourne also addressed the opening session.

Senior Research Fellow of Bangladesh Institute of Development Studies (BIDS) and consultant for the study Dr Atiur Rahman presented the report at the workshop.

The minister said the country's banking sector has been enjoying profit at a rate of 600 to 700 percent by utilising only a portion of total deposit with them.

Mentioning that there were a huge amount of idle money lying with the bank and financial institutions, he said if this money is utilised properly with minimum interest rate, the banks and financial institutions could earn more profit.

"A bank and financial institution must earn profit, but they should provide scope to their customers also to get such benefits," he said questioning the justification of huge profit margin in the banking sector.

Khosru referred to the problems faced by small and medium enterprises (SMEs) while taking financial support from banks. He identified the bank management system and collateral support as the main problems in this regard.