BB may raise private sector credit growth
Bangladesh Bank is set to raise the private sector credit growth target to about 17 percent for the second half of the fiscal year as it looks to help the government achieve 7.4 percent GDP growth. The target for the first half of fiscal 2017-18 was 16.2 percent and it was expected that the target will be raised slightly to 16.30 percent in the second half’s monetary policy, due to be announced today. At the end of last month, private sector credit growth stood at 18.13 percent — way past the target set for the period. Subsequently, for the next six months, the central bank has decided to raise the target a little more to 17 percent in keeping with the higher demand for money supply in the market, a BB official told The Daily Star yesterday. In another development, the central bank is likely to bring down the loan-deposit ratio ceiling to rein in the runaway loan growth rate, much to the disappointment of banks. The loan-deposit ratio will be 83 percent for conventional banks and 89 percent for Shariah-based banks, according to the BB official.
More banks likely as 57 in operation
The Financial Institutions Division has recommended the Bangladesh Bank to review a petition for licence for Citizen Bank Limited despite a central bank veto as intense lobbying for licences for new banks continues although the ailing banking sector is already overcrowded with 57 banks. Officials said that Mohammed Iqbal, owner of export oriented BHIS Apparels Limited, applied to the central bank for the licence on November 8, 2017 and persuaded finance minister AMA Muhith to get the proposal approved issued at the earliest.
Muhith warns banks of black money in election year
Finance Minister AMA Muhith yesterday said black money may come into the market in the election year and has subsequently advised banks to be cautious when granting loans. “Money will be in circulation a bit more this year, especially black money, as it is the election year. So you have to be cautious,” Muhith said at Rupali Bank’s annual general meeting held at the capital’s Osmani Memorial Auditorium. In a parallel development, the Bangladesh Bank is likely to announce a lower ceiling for loan-deposit ratio of banks with a view to reining in the runaway loan growth rate in today’s monetary policy statement.
HSBC BD tops Euromoney trade finance survey
The Hongkong and Shanghai Banking Corporation Limited in Bangladesh has won the title of ‘Number 1 Trade Finance Bank in Bangladesh’ and ‘Best in Service for Trade Finance in Bangladesh’ in Euromoney Trade Finance Survey 2018, one of the premier accolades in financial services, said a statement. For the first time, the Bank has also been chosen by its customers as the world’s number 1 global trade finance bank. The survey also announced HSBC to be the leading trade bank in Latin America and the Middle East. Along with Bangladesh the bank also won country awards in Argentina, Hong Kong, India, Mexico, Qatar, Singapore, UAE, UK, US and Vietnam. Commenting on the wins, Francois de Maricourt, Chief Executive Officer, HSBC Bangladesh said, “We are pleased to be recognised by our clients as the country’s number one trade finance bank. The recognition will inspire us to do even better and continue to put clients at the forefront of everything we do.”
Diversify exports, bring in more FDI
Bangladesh must put serious effort in finding ways to diversify exports and attract more foreign direct investment to sustain its “very admirable and amazing” economic growth, says the European Union (EU). Bangladesh has maintained 7 percent growth over the last couple of years, it said. “It’s still a challenge and progress in these areas will depend on domestic reforms agenda,” EU Ambassador in Dhaka Rensje Teerink said. In an interview with the news agency, she said Bangladesh really needs to look at how it can attract businesses and give confidence to investors that there would be ease of doing business.
Japan offers assistance in energy sector
Japan is keen to continue cooperation with Bangladesh in various sectors, including power and energy. Visiting Special Advisor of the Prime Minister Japan said that the Prime Minister Sinzo Abe desires to continue cooperation with Bangladesh in various sectors. Sonoura said Matarbari 1200 MW Ultra Super Critical Coal-Fired Power Plant is a flagship project on cooperation between the two countries in the power sector.
Work begins on 1200 MW Matarbari plant
Prime Minister Sheikh Hasina laid on Sunday the foundation of the 1200 MW Matarbari plant, regarded as a flagship project for being an “ultra super critical coal-fired power” plant to be installed at a cost of Taka 360 billion (36,000 crore), reports BSS. “Our goal is to light up every house of Bangladesh as we want to build Bangladesh as a hunger and poverty-free nation by 2021 and a developed one by 2041,” Sheikh Hasina said marking the event. The premier laid the foundation in a video conference from her Gonobhaban residence. The plant will be constructed at Matarbari of Moheshkhali upazila in Cox’s Bazar with Japan government’s financial and technical cooperation.
Growing fast, pushing up exports
Described as a backward-integration of the Readymade Garment (RMG) sector and other export-oriented industries, the Garments Accessories and Packaging (GAP) sector in Bangladesh is growing fast to push up export earnings and meet the demand of the apparel sector. “For the past 7 years, around 100 new factories have been set-up every year, raising the total number to around 1,600. The net export earnings of the (GAP) sector was $6.70 billion during the 2016–17 financial year (FY), which was only $3.07 billion in the fiscal year 2011–12,” president of the Bangladesh Garments Accessories and Packaging Manufacturers and Exporters Association (BGAPMEA) Abdul Kader Khan told The Independent. “More units are being established as we have to meet a growing demand for accessories created primarily by the RMG sector’s expansion. The accessory-makers and packagers supply about 30 types of products to the RMG sector,” he said.
Chittagong Port to have new multi-purpose terminal
The Chittagong Port Authority (CPA) is going to build a mega container terminal named Laldia Multi-purpose Terminal at a cost of BDT 30 billion on 52 acres of land for enhancing capacity of the country’s premier maritime port. The project is going to be implemented on the Public-Private Partnership (PPP) basis and will be funded by the five members of a consortium with the help of the Asian Development Bank (ADB). The meeting was also told that the project involves the construction of a bulk cargo and container handling terminal including berths, storage facilities, loading and unloading facilities, an administrative space and the installation of equipment with safety and security systems.
Local and Global Stock Indices *
|Index Name||Close Value||Value Change||Percentage Change|
World Commodities *
|Commodity||Close Value||Value Change||Percentage Change|
|Crude Oil (WTI)||$ 66.32||↑0.18||↑0.27%|
|Crude Oil (Brent)||$ 70.43||↓0.09||↓0.13%|
|Gold Spot||$ 1,348.69||↓0.43||↓0.03%|
Major Currencies Exchange Rates Movement in Last Seven Days *
|USD 1||BDT 83.09|
|GBP 1||BDT 117.35|
|EUR 1||BDT 103.05|
|INR 1||BDT 1.31|
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