Banks asked to help flood-hit people

Bangladesh Bank on Wednesday requested all banks and non-bank financial institutions to extend their assistance for rehabilitation of the flood affected people under the corporate social responsibility programme. The BB issued a circular to managing directors and chief executive officers of all banks and NBFIs requesting them to extend their help to flood affected people in northern zone and other parts of the country under the CSR programme. The BB asked the banks and NBFIs to provide food, cloths, drinkable water and emergency drugs for the flood affected people. The central bank also advised the banks to distribute improved cooking stoves, portable solar lanterns and small solar home systems under 20 watt among the flood affected people.

Source:
http://www.newagebd.net/article/19651/banks-asked-to-help-flood-hit-people
http://www.thedailystar.net/business/banking/bangladesh-bank-advises-banks-help-flood-victims-1432198

BB may raise pvt sector growth target in MPS

Bangladesh Bank may increase the private sector growth target slightly in the coming monetary policy statement (MPS) for July-December of 2017 with a view to achieving the GDP growth of 7.40 per cent set by the government for this fiscal year.The central bank will unveil the MPS on July 25, a BB official told New Age on Wednesday. The central bank, however, feared that the country would face an inflationary pressure due to higher amount of money supply than that of the January-June period of this year.He said that the recent flood in different parts of the country had already damaged the crops that would increase the price of food commodities in the local market. Besides, the food and non-food inflation is now maintaining an upward trend in the global market which would also fuel the inflationary pressure in the months to come, he said. The government, on the other hand, would make hefty amount of borrowing from the banking sources this fiscal year to implement its large mega projects ahead of national election which is scheduled to be held in the beginning period of 2019, he said. ‘Against the backdrop, the BB is facing a tough situation to draft the monetary policy targeting to contain the inflation while ensuring an uninterrupted credit flow to the government’, he said.He said the BB would not increase the ceiling of the private sector credit growth much even it might keep unchanged the target of 16.50 per cent, which was set for the January-June period of FY17. The central bank may increase maximum 0.50 per cent credit growth in the private sector for the July-December period of FY18.

Source: http://www.newagebd.net/article/19646/bb-may-raise-pvt-sector-growth-target-in-mps

BB takes initiative to make DIBOR vibrant

Bangladesh Bank has taken an initiative to make vibrant the Dhaka Interbank Offered Rate (DIBOR) to fix a uniform interbank interest rate for short-term loan within this year. Like London Interbank Offered Rate, which is popularly known as LIBOR, a benchmark rate that some of the world’s leading banks charge each other for short-term loans, the BB wants to activate the DIBOR. The BB hopes that once the DIBOR is established full-fledged, the country’s commercial banks and businesspeople will be able to use the rate as a benchmark to set the interest rate for short-term loans, a BB official told New Age on Wednesday. The central bank issued a letter to managing directors and chief executive officers of 15 commercial banks including 12 primary dealers on June 14 asking them to place their opinion before the BB in the shortest possible time on how to make the DIBOR vibrant. The official said that the central bank had recently taken a number of measures to activate the DIBOR with a view to establishing a uniform rate for the banks, corporate bodies and individuals. The central bank asked Bangladesh Foreign Exchange Dealers Association, an organisation of the country’s scheduled banks, in June 2016 to draw up a code of conduct over the DIBOR after which the BFEDA has recently placed a draft proposal in this regard.

Source: http://www.newagebd.net/article/19645/bb-takes-initiative-to-make-dibor-vibrant

Southeast Bank donates Tk 1.5m to DMP Shikkhabritti

Southeast Bank Limited has donated Tk. 1.5 million to “DMP Shikkhabritti 2017” fund of Dhaka Metropolitan Police. Md. Asaduzzaman Mia BPM (Bar), PPM, Commissioner, Dhaka Metropolitan Police received the cheque from M. Kamal Hossain, Managing Director of Southeast Bank Limited at a ceremony held at DMP Headquarters, Dhaka Wednesday as a part of Bank’s Corporate Social Responsibility (CSR) activities. Other high officials of Dhaka Metropolitan Police and Southeast Bank were also present at the ceremony .This scholarship amount will be helpful for meritorious students of insolvent Dhaka Metropolitan Police members for continue their education.

Source: http://print.thefinancialexpress-bd.com/2017/07/13/177648

Govt’s net bank borrowing turns negative last fiscal

The government borrowing from the banking system turned negative in net terms during the just concluded fiscal year (FY17) as the repayments of loans were more than what it borrowed.Higher sales of savings instruments and slow implementation of development projects had helped the government refrain from borrowing much from the banks, according to officials. The government paid back Tk 180.29 billion to the banks in the FY 2016-17 as against its borrowing of Tk 48.07 billion in the FY 2015-16, according to provisional data of Bangladesh Bank obtained by the FE Tuesday. The government’s borrowing from the banking system stood at Tk 906.60 billion at the end of June 30 this year, declining from Tk 1,086.89 billion on the same day of the previous year, showing a negative balance in net terms.

Source: http://print.thefinancialexpress-bd.com/2017/07/13/177677

WB to assess progress in VAT digitization

A World Bank mission is expected to visit Dhaka next week to assess the progress in digitisation and modernisation of the VAT system in light of the government move to shelve the implementation of the new law for two years. The team will also assess the implications for deferred implementation of the much-talked-about law that seeks to impose a uniform 15 percent VAT across the board, doing away with the multiple VAT rates under the existing VAT Act 1991.The mission led by Raul Felix Junquera Varela, the Washington-based lender’s lead public sector specialist and global lead on domestic revenue mobilisation, is expected to meet with the senior officials of the National Board of Revenue and the economic relations division. The team will hold meetings between July 16 and July 20 to assess the situation. Officials said the appraisal by the mission would be instrumental in the WB’s future financing for the VAT Online Project, which was taken by the government to improve revenue mobilisation and transparency in the VAT administration.The multilateral lender in May 2014 approved $60 million interest-free credit to help modernise Bangladesh’s VAT administration system and increase tax revenue. The project aims to increase the VAT-GDP ratio to 4.7 percent by June 30, 2020 from 3.7 percent in March 2014.

Source: http://www.thedailystar.net/business/banking/wb-assess-progress-vat-digitisation-1432231

Rupali issues show-cause notice to 3 CBA leaders

State-owned Rupali Bank has issued a show-cause notice to its three CBA leaders on charge of physically assaulting the general manager, deputy and assistant general managers of the bank’s local office. Rupali authorities asked the CBA leaders to explain why they would not be sacked from their job due to the charge. Rupali Bank managing director on Tuesday issued the notice to the three employees — CBA president Mustak Ahmed, general secretary Md Kabil Hossain Kazi and Md Arman Mollah. A Rupali Bank official told New Age on Wednesday that the three CBA leaders assaulted the local office’s GM, DGM and AGM on December 5, 2016.The bank also sent one employee into forced retirement and demoted four staff and transferred them outside Dhaka due to their connection with the case.

Source: http://www.newagebd.net/article/19649/rupali-issues-show-cause-notice-to-3-cba-leaders

12 DMDs appointed at 7 state-owned banks

The government has appointed 12 deputy managing directors at seven state-run banks and Investment Corporation of Bangladesh. The finance ministry issued a circular on Tuesday in this regard giving promotion to the 12 officials from their earlier posts of general manager. According to the circular, the ministry gave promotion to Abdul Mazid Sheikh and Bishnu Pada Choudhury for the DMD post of Rupali Bank, Syed Ashraful Alam, Yusuf Ali, Shawkat Islam for Sonali Bank, Foroz Ali for Janata Bank while Tazrina Ferdous and Nruzzaman for Bangladesh Krishi Bank, Kazi Alamgir for Karmasangsthan Bank, Mosaddek-ul- Alam for ICB, and Pankaj Roy Chowdhury and AKM Hamidur Rahman were appointed for BDBL. The newly appointed five DMDs were posted at their same banks and seven were re-assigned to other banks.

Source: http://www.newagebd.net/article/19650/12-dmds-appointed-at-7-state-owned-banks

World Bank (WB) to assess progress in VAT digitization

A World Bank mission is expected to visit Dhaka next week to assess the progress in digitization and modernization of the VAT system in light of the government move to shelve the implementation of the new law for two years. The team will also assess the implications for deferred implementation of the much-talked-about law that seeks to impose a uniform 15% VAT across the board, doing away with the multiple VAT rates under the existing VAT Act 1991. The mission led by Raul Felix Junquera Varela, the Washington-based lender’s lead public sector specialist and global lead on domestic revenue mobilization, is expected to meet with the senior officials of the National Board of Revenue and the economic relations division.

Source: http://www.thedailystar.net/business/banking/wb-assess-progress-vat-digitisation-1432231