"In a country like Bangladesh, creation of employment is more important and SMEs hold the potential to generate job opportunities," he said at a roundtable at the Bangladesh Bank conference room yesterday.

SME Cell of the industries ministry organised the roundtable on "SME Access to Finance" with the chairman of SME advisory panel Abdul Muyeed Chowdhury in the chair.

Deputy Governor of Bangladesh Bank Mohammad A Rumi Ali was the special guest at the roundtable, where senior bankers, businessmen and officials of the industries ministry were also present.

Salehuddin said the process of access to finance should be quick. "If project preparation takes six months and sanctioning of loan another six months, then the SMEs could not afford the lengthy procedural system," he added.

The central bank governor urged the banks and other financial institutions to provide the SMEs with financial support "not evaluating the balance sheet, rather evaluating the cash flow and income index."

"You may also evaluate four things -- employment generation, profitability, market linkage and sustainability -- before sanctioning loans to the SMEs," he said.

Salehuddin said the policy makers of the country are also concerned over the poor funding to the SMEs.

There are 49 commercial banks and 28 other financial institutions in the country, he said, alleging some of them respond to funding the SMEs while others do not.

He underscored the need for creating more employment opportunities to achieve the targets set in the Poverty Reduction Strategy Paper (PRSP).

Abdul Muyeed Chowdhury alleged financing is not reaching the actual fund-hungry SMEs where it is most needed.