Monthly import bill hits record $6.0b

The single-month import payments hit an all-time high of US$6.0 billion in December 2021 following higher purchase of textile items from the global market to build a satisfactory stock of the capital goods. Rise in import of capital machinery also pushed up the import payment obligations during the period under review. The settlement of letters of credit (LCs), generally known as actual import, in terms of value, rose by 8.32 per cent to about $6.0 billion in December 2021 from $5.54 billion in the previous month, according to the central bank’s latest statistics. It was $5.27 billion in October 2021. On the other hand, opening of LCs, generally known as import orders, increased by nearly 2.0 per cent to $6.17 billion in December from $6.06 billion a month before. It was $5.63 billion in October 2021. Imports of textile products under back-to-back LC settlement jumped more than 23 per cent to $758.33 million in December from $616.19 million in November. Imports of textile products under back-to-back LC settlement came down to $616.19 million in November 2021 from $622.64 million a month before. Imports of capital machinery or industrial equipment used for production increased by more than 67 per cent to $606.21 million in December 2021 against $361.59 million a month ago. On the other hand, actual imports for fuel-oils dropped significantly by over 37 per cent to $357.27 million in December 2021 from $568.52 million in the previous month.

Source: https://today.thefinancialexpress.com.bd/first-page/monthly-import-bill-hits-record-60b-1642440842

BB to tighten exposure to single owner of large loans

Bangladesh Bank (BB) has fixed banks’ single borrower and large exposure lending limit to within 25 per cent of its capital. The central bank issued the policy with a view to strengthening credit risk management of banks by limiting concentrated exposures and further improving the stability of the banking sector. It means no bank can lend more than 25 per cent of its capital to any company or group which will be applicable for both funded and non-funded loans. In this case a funded or direct loan will be 15 per cent. In the case of non-funded loans, in the case of export sector, the loan of Tk100 would be counted as Tk50 and in the case of power sector; the loan of Tk100 would be counted as Tk25. The BB has formulated this new policy in line with the Banking Companies Act approved in 2013. Along with this change, BB issued a notification for single customer and large loan limits, which will be effective from April 1, 2022. Before that, banks have to bring loans and credit facilities within the mentioned limits. According to the new notification, the bank will not be able to lend more than 15 percent of its capital (funded) to any group, which will be identified as a large loan. Earlier, the loan amount with interest was 15 percent. As a result, the bank will be able to lend more to a group than before.

Source: https://today.thefinancialexpress.com.bd/last-page/bb-to-tighten-exposure-to-single-owner-of-large-loans-1642441352

Md. Monzur Mofiz, New MD of ONE Bank

Md. Monzur Mofiz has taken over the charge of ONE Bank Limited as Managing Director for a tenure of 3 (three) years with effect from Sunday. He was the Managing Director (Current Charge) of the Bank prior to that. Before his joining at ONE Bank Limited, he was the DMD and Chief Business Officer of Dutch-Bangla Bank Limited. His long 28 years of work stint include the role of an Engineer in the Ministry of Education & Sonali Bank Limited. Later he served as a core Banker at AB Bank Limited, the City Bank Limited and Dutch-Bangla Bank Limited. He participated several training programs and workshops at home and abroad. He completed his B. Sc in Civil Engineering from Bangladesh University of Engineering & Technology (BUET) and obtained his MBA Degree from the Institute of Business Administration (IBA), University of Dhaka.

Source: https://today.thefinancialexpress.com.bd/stock-corporate/new-md-of-one-bank-1642431188