BB issues guidelines for treasury bonds buy-back

Bangladesh Bank (BB) has issued a 16-point guideline to undertake buy-back programme for the government treasury bonds or bills aiming to reduce the number of government securities, reports BSS. To keep pace with the other countries of the world, the government is going to take buy-back programme of the government securities for balancing the redemption profile and reducing the number of government securities, according to a BB circular issued on Tuesday. On behalf of the government, the central bank issued terms and conditions to implement the overall buy-back programme. As per auction calendar determined by the Finance Division, the buy-back programme will be operational through reverse auction or over the counter (OTC) transaction, the circular says. The buy-back of treasury bills or bonds will be accomplished in the face value of Tk one lakh or multiple of Tk one lakh and all banks and non-bank financial institutions (NBFIs), which maintain current accounts with Bangladesh Bank, can participate directly in the buy-back programme. All other resident or non-resident individuals and institutions, who have no current accounts with the central bank, can participate in the auction through the banks and NBFls, the BB circular says.

Source:
http://www.theindependentbd.com/post/132008
http://www.newagebd.net/article/32203/bb-takes-t-bonds-buyback-policy-amid-savings-tools-sales-surge

Secondary trading of T-bills, T-bonds drops by 45pc

Secondary trading of treasury bills and treasury bonds, two short-and long-term fixed income government securities, declined steeply last year. Latest statistics of the central bank showed that the total turnover of secondary trading of T-bills and T-bonds stood at Tk 282.91 billion in 2017 while the value was Tk 514.08 billion in 2016.

Source: http://today.thefinancialexpress.com.bd/last-page/secondary-trading-of-t-bills-t-bonds-drops-by-45pc-1515518184

Agent banking faring fine

Banks have started to reap benefit from agent banking just two years after the full-fledged rollout of the alternative financial service as it is increasingly getting popular among customers. Deposit collection rose 42 percent year-on-year to Tk 922 crore in the July-September quarter last year and it reached Tk 651 crore in the previous quarter, according to Bangladesh Bank data. Deposit collection totaled Tk 380.68 crore in the opening year of agent banking services in 2016. “Banks are gaining from agent banking as the service point is a great source of low-cost deposit,” said Humaira Azam, deputy managing director of Bank Asia, which runs one of the top agent banking operations in Bangladesh.

Source: http://www.thedailystar.net/city/agent-banking-faring-fine-1517656

Banks’ fund management comes under close watch

Scheduled banks’ fund management came under close supervision as the central bank issued Tuesday directives on wholesale borrowing (WB) and commitment for maintaining a sound asset-liability balance. Under the new provisions, the banks will have to submit their statements on WB and commitments to the Bangladesh Bank on fortnight and monthly basis. The first and second statements on WB have to be provided to the Department of Offsite Supervision (DOS) of the central bank in three working days after end of each fortnight to update the regulator on their financial health. On the other hand, the statement on commitments has to be submitted to the DOS of the BB by the fifth day of the following month, according to a circular issued by the Bangladesh Bank on Tuesday, in the wake of a plethora of not-so-healthy developments in the banking circles. The banks will have to submit both the accounts on their operational status in prescribed formats to the BB with the managing director and chief executive officer of the bank concerned undersigning these twin statements, it added. “We want to strengthen our monitoring and supervision regarding the asset-liability management of the banks,” a BB senior official told the FE while explaining the main objective of the directives. He also said: “It will be helpful for the banks to manage their funds properly.”

Source:
http://today.thefinancialexpress.com.bd/first-page/banks-fund-management-comes-under-close-watch-1515517703
http://www.newagebd.net/article/32206/bb-tightens-oversight

Govt’s bank borrowing now negative

The government’s debt servicing cost is increasing thanks to its growing leaning towards high-cost savings tools instead of bank borrowing. So much that in the first half of fiscal 2017-18, the government’s net borrowing from the banking sector was in the negative, according to data from the Bangladesh Bank. Between July and December last year, the government repaid Tk 3,980 crore to scheduled banks and Tk 3,896 crore to the central bank. On the other hand, between July and November last year, net sales of savings certificates edged up 4.19 percent year-on-year to Tk 21,172 crore.

Source: http://www.thedailystar.net/city/govts-bank-borrowing-now-negative-1517659

Farmers Bank gets new MD

Md. Ehsan Khasru has recently joined as Managing Director and CEO of The Farmers Bank Limited. He joined the bank on January 07. Before joining this bank, he was working as a consultant to the board of directors of Premier Bank Ltd, according to a statement. He has strong understanding of business, banking and risk management and provided leadership to large organisations like Eastern Bank, The City Bank and as Managing Director of Prime Bank.

Source:
http://today.thefinancialexpress.com.bd/trade-market/farmers-bank-gets-new-md-1515520215
http://www.theindependentbd.com/post/132010

HSBC, Nestlé sign supply chain solution agreement

The Hongkong and Shanghai Banking Corporation Limited and Nestlé in Bangladesh signed an agreement to offer “Buyer Approved Invoice Finance” (BAIF) for Nestlé’s suppliers. This is a new supply chain financing proposition that provides more efficient and cost-effective working capital solution for buyers and their suppliers, said a statement. This innovative proposition, a first by HSBC in Bangladesh, provides suppliers with access to more competitive financing. This solution also enhances visibility across the entire supply chain, which simplifies the management of trade payables and, in turn, helps to improve supply chain efficiency and agility. HSBC Bangladesh was mandated to operate the supplier financing program for Nestlé Bangladesh Limited (Nestlé).

Source: http://today.thefinancialexpress.com.bd/stock-corporate/hsbc-nestle-sign-supply-chain-solution-agreement-1515519714