DHAKA: Bangladesh’s banking system was not at risk from the global credit crisis but a prolonged world-wide downturn could reduce demand for the country’s exports and slow the pace of aid, the central bank governor said.

Salehuddin Ahmed said the commercial banks in Bangladesh have limited exposure to the banks and investment firms in the United States and Europe.

“Therefore, the ripples of financial shock into the (local) financial systems will be less likely in the short run,” he said. He was speaking on the sidelines of the IMF-World Bank Meetings in Washington D C on Friday, a government statement said on Monday.

“If the global crisis is prolonged and deepened in the developed countries, it may have adverse effects on Bangladesh’s exports.”

“If the official development assistance and bilateral fund flow slows down, pressures on government budget will be strong,” he added.

Salehuddin said that commercial banks were taking appropriate measures so that funds kept in foreign banks were not adversely affected.