BB unveils guideline on non-banking assets
The Bangladesh Bank yesterday unveiled a guideline on non-banking assets to allow lenders to deal with the properties put up as collateral after borrowers default. When clients fail to pay back loans, banks can take over the assets through legal channels. These assets are called non-banking assets.The guidelines asked banks to complete the registration and mutation of the assets, ensure the physical possession within the quickest possible time, and include the assets in the balance sheet after adjusting the dues.The assessment also has to be carried out by valuation firms or professional bodies, according to the BB. The lower value among the prices determined by the valuation committee and the valuation firms has to be considered as the market price of the assets.The central bank has ordered banks not to hold the non-banking assets beyond the permitted time. Banks have to move to sell them as soon as possible. They, however, can use the assets to run banking operations.
BB relaxes forex rules in export, import
The Bangladesh Bank (BB) has brought relaxation in foreign-exchange regulations in export, import, remittance and other trade services to overcome economic challenges of the Covid-19 pandemic, said BB deputy governor Ahmed Jamal on Monday. He also said the central bank has taken a number of initiatives in the areas of trade payment and finance to keep the country’s economy going throughout the pandemic.The BIBM director general said findings of the study along with opinions and observations made at the programme would help the BB to take future actions.
IFC to invest $2.5m in Truck Lagbe
International Finance Corporation (IFC) is going to invest $2.5 million in online platform Truck Lagbe to connect people and corporate customers with truck owners and drivers through an app and a website in Bangladesh.The platform has registered over 43,000 shippers alongside 20,000 trucks of different carrying capacities for short and long hauls.The company said it offers price transparency, real-time tracking of shipments through GPS technology and maximises truck utilisation, driving efficiencies across the logistics value chain, which reduces greenhouse gas emissions.The IFC is also providing the company knowledge and innovative support by leveraging insights from previous investments and will be connecting it to more prospective clients.
Dhaka Bank holds business review meeting in Chattogram
The Business Review Meeting-2021 of Dhaka Bank Limited for Chattogram City branches was held on Monday at a hotel in Chattogram. Abdul Hai Sarker, Chairman of the board of directors of Dhaka Bank, was present as the chief guest while EmranulHuq, Managing Director & CEO of Dhaka Bank, presided over the meeting. Among others, Vice Chairman Jashim Uddin, Founder Vice Chairman A.T.M. Hayatuzzaman Khan, Chairperson of Executive Committee Rokshana Zaman, Directors MessersAltaf Hossain Sarker, Mohammed Hanif, Tahidul Hossain Chowdhury, Md. Amirullah, Abdullah Al Ahsan, Mirza Yasser Abbas, ManoaraKhandaker, Additional Managing Director Mohammad Abu Jafar; Deputy Managing Directors A K M Shahnawaj, A M MMoyen Uddin and Chief Financial Officer SahabubAlam Khan were also present on the occasion. Branch Managers of Chattogram City branches attended the programme. The Meeting reviewed budget till August, 2021 and chalked out future plans and programs for achieving the yearly target.
ADB to give $250m loan for Bangladesh CMSMEs
The Asian Development Bank (ADB) would provide US$ 250 million policy-based loan to Bangladesh for facilitating economic recovery of the CMSMEs amid the Covid-19 pandemic, officials said on Monday. The board of directors of the Manila-based lender is likely to approve the loan for Bangladesh on Friday, a senior official of the Economic Relations Division (ERD) told the FE.It would also help rapid economic and social recovery from Covid-19 by increasing the tax-GDP ratio to 12.3 per cent in fiscal year (FY) 2025 from 8.9 per cent in FY 2019, increasing the public investment-GDP ratio to 9.24 per cent in FY 2025 from 8.03 per cent in FY 2019, and reforming the state-owned enterprises (SoEs) to minimise subsidies that drain the public exchequer.The ERD official said since Bangladesh’s economy was severely affected by the coronavirus pandemic, the ADB’s $250 million policy-based loan would help the country to recover from the massive losses.The CMSMEs with weak access to formal credit, including those run by women, are facing increased liquidity problem with loan disbursements declining by 27.60 per cent in the third quarter of 2020 compared to the same period in 2019.Earlier, the ADB had confirmed another $250 million policy-based loan to Bangladesh for facilitating reforms in improving social safety-net programmes amid the Covid-19.