Banks to get policy support, regulatory relaxations for mergers

The banking companies merging with weak banks will enjoy regulatory relaxations from the Bangladesh Bank and policy support from the government. The central bank issued a circular on Thursday introducing guidelines for mergers, both voluntary and compulsory. Under the guidelines, one or multiple banks can merge, and non-bank financial institutions can also merge with banks. Banks can seek policy support from the government by applying to the Bangladesh Bank, according to the guidelines that come into immediate effect. Such incentives were offered because the health indicators of transferee banks may deteriorate after merging with weak banks, as stated in the guideline. Individual depositors of the transferor bank will be given the highest priority in retrieving their money from transferee banks when a new payment schedule is prepared for institutional depositors.

Source: https://www.tbsnews.net/economy/banking/banks-get-policy-support-regulatory-relaxations-mergers-824796

 Cashless transactions soar as Eid shopping goes digital

Shoppers are increasingly making purchases through using cards and mobile financial services (MFS) ahead of the Eid-ul-Fitr, with officials from different brands, fashion houses, and banks reporting that around 40%-60% of transactions are now cashless at high-end outlets. The trend is being driven by a number of factors, including the convenience and security of cashless payments, as well as the growing availability of discounts and offers from banks and MFS providers, the officials say. According to Bangladesh Bank data, in July, the first month of the current fiscal year 2023-24, transactions based on ATM, POS, CRM, and e-commerce amounted to Tk37,669 crore. But the transaction amount increased to Tk46,448 crore in January, registering a 23.30% jump over six months. On the other hand, transactions through mobile financial services amounted to Tk98,306 crore in July 2023. However, within a span of six months, the transaction amount rose by 31.67% to reach Tk1,29,445 crore. Banks are now offering discounts of up to 70-80% on various products including clothing, shoes, and jewellery during Eid shopping through credit cards. Besides, discounts are being offered even on purchase of food for iftar and sehri, along with various Eid gifts such as buy-one-get-one offers.

Source: https://www.tbsnews.net/economy/banking/cashless-transactions-soar-eid-shopping-goes-digital-824331

Gold price to break all-time record

The price of gold in Bangladesh is set to break all previous records tomorrow as jewellers in the country today decided to further increase their rates for precious metal. As such, each bhori (11.66 grams) of 22-carat gold will cost Tk 115,823, up 1.5 percent from the previous rate. Gold has been sold at Tk 114,074 per bhori since March 22 this year. In a press release issued today, the Bangladesh Jeweller’s Association said they decided to raise the rate as the price of pure gold has increased in the local market. Bangladesh saw gold prices rise above Tk 1 lakh per bhori for the first time on July 20 last year.

Source: https://www.thedailystar.net/business/news/gold-price-break-all-time-record-3583521