BB developing collateral database to stop forgery

The central bank is developing a collateral information system incorporating data on immovable properties which are used for getting loans aiming to prevent document forgery, officials said. The Bangladesh Bank has taken the initiative as dishonest people nowadays increasingly use forged documents and re-use collateral to get loans. In many cases, the banks later could not recover the loan amount when the borrower defaults loans or flees, they added.The information on moveable properties will also be included in the database, when such properties like goods, documents of title, security, instrument, money or any other intangible assets including goodwill will be recognised as collateral of loans. The government recently drafted a law in this regard.

Source: http://print.thefinancialexpress-bd.com/2017/08/16/180736

Deposits in street children’s bank accounts drop sharply

Deposit in the street children’s accounts with the banks decreased significantly in the first three months of this year as the country’s commercial banks are unwilling to extend their services to them.The banks also showed a reluctant attitude to open accounts for the street children and child workers as the number of accounts stood only 3,675 as of March 31, 2017, according to the latest Bangladesh Bank data.The BB data showed that the total deposits in the street children’s accounts decreased to Tk 21.56 lakh at the end of March 2017 from Tk 24.42 lakh as of December 31, 2016.Seventeen of the 57 banks have so far opened these accounts. The banks are : Sonali Bank, Janata Bank, Rupali Bank, Agrani Bank, Bangladesh Krishi Bank, Bangladesh Development Bank, Bank Asia, Mercantile Bank, Mutual Trust Bank, National Bank, Social Islami Bank, One Bank, Pubali Bank, The City Bank, Trust Bank, Al-Arafah Islami Bank, and Uttara Bank.As per BB guidelines, street children’s accounts should be operated by the non-government organisations nominated by the central bank.

Source: http://www.newagebd.net/article/22037/deposits-in-street-childrens-bank-accounts-drop-sharply

Current account balance turns negative after 4yrs

The country’s current account balance registered a deficit of $ 1.48 billion in the recently concluded fiscal year 2016-17 for the first time in last five years due to a negative growth of inward remittance, trade balance, services and primary income.The current account balance, the gap between export receipts and net earnings, including remittances, and import payments and profit repatriation by multinational companies and local people, earlier registered its all-time high surplus at $4.26 billion in the previous fiscal year of 2015-16.Bangladesh Bank officials and an expert said that it was an unusual phenomenon for a country that the record surplus in the current account balance had just plunge into a large gap within one month.The country’s current account balance stood at $2.87 billion in FY15, $1.40 billion in FY14, $2.38 billion in FY13 and a deficit amount of $447 million in FY12.In the latest monetary policy for July-December of 2017, the central bank projected that the deficit in the current account balance would widen further to $2.72 billion this fiscal year.The BB also forecasted that the country’s trade deficit would cross $11 billion this fiscal year 2017-18 due to recent pressures on the economy’s external sector strength.It would be a tough job for the government to achieve 7.40 per cent gross domestic product growth this fiscal year due to the large volume of trade deficit and gap in current account balance.

Source: http://www.newagebd.net/article/21971/current-account-balance-turns-negative-after-4yrs

City Bank issues Tk 500cr bonds

City Bank has recently completed the process of issuing coupon bearing subordinated bonds worth Tk 500 crore in Bangladesh, the bank yesterday said in a statement.RSA Capital Ltd and City Bank Capital Resources Ltd are the prime arrangers of the issuance process of these bonds.The issue of bonds has enhanced City Bank’s Tier II capital as per Bangladesh Bank’s requirement.As a result, this has also led to the increase of the bank’s Capital Adequacy Ratio.The participating banks and institutions which have subscribed to the bonds are One Bank, Rupali Bank, Janata Bank, Sonali Bank, Pubali Bank, Mercantile Bank, Uttara Bank, Agrani Bank, Dhaka Bank, Standard Bank and Dhaka Stock Exchange.In a ceremony organised at the bank’s head office in Dhaka, Sohail R K Hussain, CEO of City Bank, has expressed sincere gratitude towards the subscribers and parties who were involved in the issuance process, according to the statement.

Source: http://www.thedailystar.net/business/banking/city-bank-issues-tk-500cr-bonds-1448725

Leading by example: EBL

Bangladesh has an excess number of banks at present, which has given rise to unhealthy competition, said Ali Reza Iftekhar, managing director of Eastern Bank Limited.“Time has come to merge the banks as the financial health of many of them is very weak,” he told The Daily Star in an interview recently.Some banks are making losses year after year, he said.“They have no right to do it, putting public money at risk. If any international rating agency rated the banks neutrally, many banks will have to be merged.”Eastern Bank, which marks 25 years of operation tomorrow, though is seeing all its financial indicators improve consistently.In 2016, the bank registered the lowest default loan rate among banks: 2.69 percent against the industry average of more than 9 percent. Its net profit in 2016 was Tk 265 crore, up 19.37 percent from a year earlier.For the second straight year, EBL was awarded the ‘Best Bank of Bangladesh’ by Euromoney, a London-based monthly magazine focused on business and finance, in a ceremony held in Hong Kong on July 13.

Source: http://www.thedailystar.net/business/banking/leading-example-ebl-1448701

Grameen Bank’s profit rises, interest declines

Grameen Bank has earned good profit in recent months despite the lending rate cut by the present management, according to the latest data available from the bank.The bank for the poor made a profit of Tk 1.02 billion (102 crore) in the first six months of this year as against the yearly profit of Tk 1.39 billion in 2016, reports BSS.

Source: http://print.thefinancialexpress-bd.com/2017/08/16/180696

Al-Arafah Islami Bank Limited has become the Title Sponsor of 3rd Bangladesh Junior Science Olympiad 2017

Al-Arafah Islami Bank Limited has become the Title Sponsor of 3rd Bangladesh Junior Science Olympiad 2017. Chairman of the Bank Alhajj Abdus Samad Labu handed over the sponsorship cheque for Tk 1.0 million to convener of the Olympiad Munir Hasan recently at Al-Arafah Tower, Dhaka. Managing Director Md. Habibur Rahman presided over the ceremony. Director Badiur Rahman seen, among others.

Source: http://print.thefinancialexpress-bd.com/2017/08/16/180719