Cash-strapped banks turn to Sonali for costly fund
Gripped with a severe liquidity crisis triggered by irregularities and corruption, private sector lenders Islami Bank, Al-Arafah Islami Bank and National Bank are borrowing money from state-owned Sonali Bank at 9% interest – the highest commercial lending rate at present. It is a normal practice that when a bank faces a liquidity crisis it borrows from another bank via the interbank money market – where the borrowing cost is lower than the commercial rate. But the liquidity situation in three private sector banks is so critical that they are forced to borrow from another bank at the highest commercial lending rate. According to the Bangladesh Bank’s guidelines, banks can charge a maximum of 9% interest on all types of loans other than consumer loans such as auto loans and personal loans – in which case the highest lending rate ceiling is 12%.
World Bank a key partner of Bangladesh’s economic growth: Finance minister
Finance Minister AHM Mustafa Kamal on Sunday praised the World Bank for its continued support towards Bangladesh’s development. He said Bangladesh’s growth has increased by 74 times since 1972, and the World Bank had a role to play behind it. “After independence, the country’s GDP growth was only $6.3 billion, which has now increased to $465 billion,” he said. The finance minister came up with the statement while addressing a function as the chief guest marking the celebration of 50 years of partnership between Bangladesh and the World Bank held at the Bangabandhu International Conference Centre (BICC) in the capital, according to UNB and BSS. The finance minister also said that Bangladesh is currently the 35th largest economy, and the poverty rate has come down to 20 per cent, per capita income increased to $2,824 and average life expectancy increased to 73 years. Highlighting the future plans, the Finance Minister said, “Our next target will be to turn Bangladesh into an upper-middle income country by 2031, and a Smart Developed Bangladesh in 2041.” The finance minister reiterated his appeal to the development partners including the World Bank, to continue their support to Bangladesh to attain its various development goals. The finance minister noted that Prime Minister Sheikh Hasina has been the architect of modern Bangladesh. Visiting World Bank managing director (operations) Aaxel van Trotsenburg, Vice President for South Asia region Martin Raiser, World Bank country director Abdoulaye Seck and ERD Secretary Sharifa Khan spoke on the occasion. The World Bank managing director reaffirmed strong support for Bangladesh as he marked the 50thanniversary of fruitful partnership.
City Bank gets new DMD
City Bank has promoted a senior executive vice-president and head of credit risk management to the posts of deputy managing director and chief risk officer. The official, Mesbaul Asif Siddiqui, joined City Bank in 2015 as an executive vice-president in its corporate banking unit, said a press release. He started his career at Eastern Bank in 1999 as a management trainee officer and has also served at the Commercial Bank of Ceylon and HSBC Bank. He attained a Master of Business Administration degree in finance from the University of Dhaka and a Master of Business Management degree from the Bangladesh Institute of Bank Management.
Local and Global Stock Indices *
|Index Name||Close Value||Value Change||Percentage Change|
| ↑ 254.07||↑ 0.76%|
|FTSE100||$7,784.67||↑ 14.08 ||↑ 0.18%|
|Nikkei 225||$27,330.99 ||↑ 424.95||↑ 1.58%|
World Commodities *
|Commodity||Close Value||Value Change||Percentage Change|
|Crude Oil (WTI)||$81.61 ||↓ 0.01||↓ 0.01%|
|Crude Oil (Brent)||$88.06 || ↓ 0.13||↓ 0.15%|
|Gold Spot||$1,933.99 ||↑ 2.95||↑ 0.15%|
Major Currencies Exchange Rates Movement in Last Seven Days *
|USD 1||BDT 107.0000||BDT 107.0000|
*World Commodities & Local and Global Stock Indices data are taken from bloomberg.com<
* Exchange Rates are taken from BB website, as on latest update.<