BB cuts margin for banks as interest rate soars

With the interest rate on loans soaring, Bangladesh Bank (BB) yesterday reduced the margin that banks use to fix the lending rates in a bid to contain the cost of borrowing and ease pressure confronting businesses. In a notice, the central bank said banks will be able to charge a maximum margin of 3 percent on the top of the benchmark rate — the Six Months Moving Average Rate of Treasury Bill (SMART). It was down from 3.5 percent. In July last year, the BB introduced the SMART to allow the interest rate to become more market-based, ending the 9 percent lending rate ceiling, with a view to making funds costlier and rein in the skyrocketing inflation. In June 2023, the weighted average interest rate of deposits and loans was 4.38 percent and 7.31 percent, respectively. The rates rose to 4.92 percent and 9.75 percent, respectively, in January.

Source: https://www.thedailystar.net/business/economy/news/bb-cuts-margin-banks-interest-rate-soars-3579186

Banks offer hefty discounts in cashless shopping on card payment

Cashless payments are adding to the joys of Eid shopping, traveling, Iftar and Sehri meals. Thanks to the hefty discounts offered by banks and mobile financial services (MFS), credit card holders are making best use of the facilities. Banks keeping in mind the demand of different types of their customers, provide up to 80 per cent discount, cashback, and buy one get one offers in purchasing products and services using credit and debit cards during this Eid festival. Some banks are offering discounts on the purchase of various products including Eid clothes, shoes, and jewellery. In addition, iftar prices are discounted throughout the month of Ramadan. There are also many ‘Eid gifts’ including buy one get one offers. as many as 300 lifestyle stores offer up to 60 per cent and more than 50 jewelery establishments offer up to 80 per cent discount for City Bank cardholders. currently, StanChart provides up to 60 per cent discount, which is convenient to the customers in the use of seven types of credit cards to make Eid more enjoyable.

Source: https://today.thefinancialexpress.com.bd/stock-corporate/banks-offer-hefty-discounts-in-cashless-shopping-on-card-payment-1711902806

More CEOs expect economic improvement this year

A higher number of chief executive officers (CEOs) working in firms in Bangladesh expect that the economy is likely to improve in the next one year compared to that a year earlier. About 36 percent of the CEOs are expecting the economic growth rate to improve, compared to 31 percent in a similar survey conducted last year. The PwC surveyed 52 local CEOs as a part of its global survey among CEOs across 105 countries and territories from October 2 through November 10 of 2023. Thriving in the era of continuous reinvention reflects the sentiment of business leaders in Bangladesh amid ongoing economic changes, technological evolution, and environmental concerns. Around 72 percent stated that they made progress in their energy efficiency improvement programmes and expressed an optimistic view about the impact of artificial intelligence (AI) in their organisations. Around 79 percent expect generative AI to increase efficiencies in their own work time, and 74 percent expect it to improve their employees’ efficiency in the next 12 months.

Source: https://www.thedailystar.net/business/economy/news/more-ceos-expect-economic-improvement-year-3579216