Banks’ liquidity squeezes as financial deepening declines

Access of people and businesses to funds squeezes as Bangladesh’s “financial deepening” is on the decline with its domino effect on the economy. In such a tight situation, people are not having wider choice of financial services, he says about fallout from the contraction in financial deepening, a major financial-sector indicator, which can be defined as increased provision of financial services to the people, with wider choice of services channelled to all levels of society. This financial terminology generally implies more liquidity. This is based on the premise that the more liquid money is accessible in an economy, the more is the financial deepening and opportunities for continuous growth and expansion. The indicator, measured as a ratio of broad money and GDP, should have been in Bangladesh now at 84, if the progress continued. Citing parables, he said the financial deepening is at 90 in India having an almost similar economy as Bangladesh. And the indicator in East Asia is between 110 and 129 while over 200 in China.

Source: https://today.thefinancialexpress.com.bd/first-page/banks-liquidity-squeezes-as-financial-deepening-declines-1720890586

Chinese clothing industry High Hope Zhongtian Corp plans to set up office in Dhaka

Chinese clothing industry High Hope Zhongtian Corporation, a core affiliate of Jiangsu SOHO Holdings Group, plans to open an office in Dhaka to explore investment opportunities in the textile and apparel sector in Bangladesh. Bao Zhenxing, chairman of the corporation, recently visited Dhaka for the first time as part of the investment plan. In an interview with The Business Standard during the visit, Zhenxing said that they are looking at two options: collaboration with a local textile factory and setting up their own factory. He said they have a strong fabric business with which they can support local garment factories in manufacturing high-value apparel. Founded in 1973, the state-owned enterprise operates in the textile and clothing industry in China. In 2020, the export value of its textile and clothing products was $140 million, according to the company. The company manufactures fabric, garments, home textiles, kids’ garments, fashion accessories, and bags. The group exports fabric to global markets, including the USA, Europe, Japan, Southeast Asia, South America, and Australia. For instance, in China, the monthly labour wage rose to $1,000 when the cost in Bangladesh was between $100 and $115, which is very cost-effective.

Source: https://www.tbsnews.net/economy/rmg/chinese-clothing-industry-high-hope-zhongtian-corp-plans-set-office-dhaka-898086

Construction material industry faces meltdown as sales plunge

Already hit by tighter state investment, real estate inflation, and sluggish industrialisation since the Ukraine War, the country’s construction material industries were dealt a severe blow in the just concluded fiscal year with an even faster slump in consumption of key materials. The steadily rising volume curve of construction rods bent down in 2023-24 fiscal year as the rate of decline quadrupled while mega projects and large building constructions tapered off. Cement sales continued in its third straight year of lower sales, while tiles, fittings and paints consumption followed the trend over the last two years, raising industry concern about capacity utilisation, essential for achieving economies of scale. The rate of decline more than quadrupled in the past fiscal year ending in June as national consumption fell to around 52 lakh tonnes to post a 17% drop year on year. The decade-long 8% plus compound annual growth of demand for cement, the most consumed construction material, had reversed in FY22 and the slump continued for the third straight year. Sales data compiled by the Bangladesh Cement Manufacturers Association (BCMA) suggest annual demand for cement peaked to nearly four crore tonnes in 2021 from 1.5 crore tonnes in 2011 and fell to around 3.8 crore tonnes in FY24.

Source: https://www.tbsnews.net/economy/industry/construction-material-industry-faces-meltdown-sales-plunge-898066

 Digital activities to be included in census for first time

Bangladesh is set to include online economic activities of firms and households in its new census this year to cover all sectors of the country, a move that is expected to present data about the size of the expanding digital economy. On July 7, the Bangladesh Bureau of Statistics (BBS) rolled out the Fourth Economic Census 2023 Project. Its enumerators will enroll economic establishments and households until July 26. The move reflects the increasing economic activities carried out virtually in Bangladesh. In recent years, e-commerce, f-commerce, e-trade and freelancing have boomed in the country, in keeping with global trends. In Bangladesh, the first economic census was conducted in 1986. The second national survey came in 2001-2003 while the third one was done in 2013. Census is usually carried out every 10 years, and it is a costly exercise for the country as well. Therefore, the economist urged the government to think about surveys every two years to update information.

Source: https://www.thedailystar.net/business/economy/news/digital-activities-be-included-census-first-time-3656201

 Mr. Ahsan Zaman new MD of Trust Bank

Mr. Ahsan Zaman Chowdhury has been appointed as managing director of Trust Bank, effective from July 10, 2024, according to a press statement. Prior to his new role, he served Trust Bank as deputy managing director & chief business officer from November 2020. He joined Trust Bank as senior executive vice president in August 2016. He is credited for establishing a business culture taking customers’ vision and converting it into a functional business model. Mr Chowdhury started his career with AB Bank Ltd in 1986 and later joined Eastern Bank Ltd in 1998 where he held senior positions in different capacities.

Source: https://today.thefinancialexpress.com.bd/stock-corporate/ahsan-zaman-new-md-of-trust-bank-1720888358