Appoint Ombudsman for Banking Sector

With defaulters securing important positions in the government and corporate governance remaining extremely weak, it is not possible for the Banks to recover the huge volume of non-performing loans from defaulters, observed Economists, Bankers and Civil Society Members at a function in Dhaka Saturday. The government was not sincere in its efforts to recover classified loans. It is just playing an “arranged game” in the name of loan recovery. The classified loans in the Banking sector will never be realized with this kind of game being in place or played out, according to Prof. Dr Mainul Islam. According to the Former Director General of Bangladesh Institute of Bank Management, the actual volume of classified loans would be around Tk 3.0 trillion or 30 per cent of the total outstanding loans. Most Banks were given permission on political considerations. The directors are either politicians or they have links with politics. These people are making profits on depositors’ money. Most or all the loan defaulters are wilful defaulters and they have decided not to pay back to Banks due to their political connections. According to the economist, all political parties have an agreement on allowing misappropriation of Banks’ money. So, they have never used the Bankruptcy act.

Source: http://today.thefinancialexpress.com.bd/first-page/appoint-ombudsman-for-banking-sector-1570897673

ADB offers help to establish Dhaka-Cox’s Bazar Rail Link

Asian Development Bank [ADB] will help Bangladesh Railway [BR] in establishing direct rail link from Dhaka to Cox’s Bazar by converting the metre gauge track into a broad gauge line from Dhaka to Dohazari of Chattogram. At present, BR has a metre gauge railway line from Dhaka to Dohazari of Chattogram. With the financial assistance of ADB, a project is underway to set up single-line dual-gauge [both broad and metre gauge] rail link from Dohazari to Cox’s Bazar. Official sources said ADB has assured the BR authority of providing necessary support to conduct feasibility studies and investment fund to build the dual gauge railway line. Feasibility studies on 320-kilometre corridor are now being conducted in three phases–Tongi-Akhaura, Laksam- Chattogram and Chattogram-Dohazari. ADB has assured the BR authority of investing in the corridor phase by phase starting from 2020. At present, BR can operate maximum 50 trains on the existing double line metre gauge track. A single line broad gauge has been proposed from Chattogram to Dohazari due to having less rail traffic in the Chattogram hill tracts. BR has undertaken a project to construct 3rd and 4th dual gauge lines on Dhaka-Tongi section which is used to run trains both in eastern and western zones of the country. Dhaka-Chattogram is part of eastern zone.

Source: http://today.thefinancialexpress.com.bd/last-page/adb-offers-help-to-establish-dhaka-coxs-bazar-rail-link-1570897507

Digital Tech can help narrow Trade Finance gap

Digital, or financial technology – including mobile internet access, blockchain, artificial intelligence, and big data – can make international trade more efficient and support financing options. Trade finance provides exporters and importers with effective tools to manage working capital and reduce risks related to trading across borders. Around 40 percent of global international trade is financed by Banks through trade finance transactions such as letters of credit, loans, and guarantees. There are around $1.5 trillion of rejected trade finance applications globally in 2018, which is as much as 8 percent of global goods trade, according to the recent report, Trade Finance Gaps, Jobs, and Growth Survey. The Asia-Pacific region accounts for 40 percent of the total rejection. The lack of financing acts as a significant barrier to trade, particularly for small and medium-sized enterprises in developing economies. These businesses are most affected as they tend to have higher rejection rates relative to larger firms. Around half of the rejections originate from small and medium sized enterprises. The survey shows that around 44% of the firms with rejected trade finance applications were unable to find appropriate alternative financing.

Source: https://www.thedailystar.net/business/news/digital-tech-can-help-narrow-trade-finance-gap-1813042

96pc Samsung sets assembled locally

No Samsung mobile handsets will be imported to Bangladesh after March next year as its local plant is capable of meeting the domestic demand entirely. The plant in Narsingdi is currently assembling products that account for 96 percent of Samsung’s smartphone sales in the country. Samsung Bangladesh and its assembly partner Fair Electronics Ltd announced that the globally reputed mobile brand will start assembling its Galaxy-branded flagship products within next few months. They shared the info at a press conference at the Pan Pacific Sonargaon in Dhaka yesterday. In the last one year, the plant has assembled about 15 lakh units of smartphones, with prices ranging from Tk 7,500 to Tk 40,000. The garment sector, the tech industry has the potential to become the main driver of Bangladesh’s economy by way of assembling technologically sophisticated products. Fair Electronics is adding about 35 percent value to its products and within the next few years, the value addition will go up to 45 percent as it is planning to set up a PCBA motherboard manufacturing system. PCBA or printed circuit board assembly motherboard is the main component of products such as mobile phones, tablets, laptops, and computers.

Source: https://www.thedailystar.net/business/news/96pc-samsung-sets-assembled-locally-1813057