Telcos can’t hold shares in mobile banking companies: Bangladesh Bank

Bangladesh Bank will not allow mobile network operators to hold any shares in the companies which run mobile financial service, according to the BB’s latest draft guidelines on the MFS. The draft guidelines said that the MNOs would just provide networking services to settle clients’ transaction through the MFS. The MNOs have been demanding for long to allow their investment in the MFS operation, but the BB high-ups are openly opposing their (MNOs) demand at different seminars and events as the central bank has decided to follow a bank-led model in this regard. In 2015, Trust Bank decided to form a subsidiary with Malaysia’s Axiata Group to provide the MFS, but the BB did not entertain their initiative. Axiata Group is now holding the majority of shares of Robi Axiata Ltd, one of the MNOs operating in Bangladesh. If approved, Trust Bank would have held the subsidiary company’s 51.0% shares while Axiata would have owned the rest.

Source: http://www.newagebd.net/article/15651/telcos-cant-hold-shares-in-mobile-banking-cos

Banks asked to impose condition on loans against 11 more item

Bangladesh Bank on Monday asked banks to impose condition for using mandatorily jute bags in packaging 11 more commodities when they (banks) will approve loans to manufacturers and supplier companies of the products. The 11 commodities are onion, ginger, garlic, pulses, potato, flour, chilli, turmeric, coriander seeds and husks of rice and wheat. The BB issued a circular to managing directors and chief executive officers of all banks asking them to follow the directive in line with an inter-ministerial meeting decision taken on April 9, 2017. On October 12, 2015, the central bank had asked banks to impose condition for using jute bags mandatorily in packaging six commodities during loan approval to the manufacturers and supplier companies of the products.

Source: http://www.newagebd.net/article/15657/banks-asked-to-impose-condition-on-loans-against-11-more-items

Four state banks’ BDT 277.0 billion caught in legal tussle

The credit amounts of the four state banks that are stuck in lawsuits pending with the money loan court rose BDT 56.0 billion in 2016. Sonali, Janata, Agrani and Rupali had a combined BDT 277.0 billion caught in unresolved cases with the money loan court as of December 2016, up 2.54% on 2015 when it was BDT 220.0 billion, according to Bangladesh Bank data. The huge amount of loans remain stuck with the courts because of a tendency among clients to file writs so they are not declared defaulters, said Md Obayed Ullah Al Masud, managing director of Sonali Bank.

Source: http://www.thedailystar.net/business/four-state-banks-tk-27700cr-loans-caught-legal-tussle-1405840

Exporters can repay foreign loans using ERQ fund

Bangladesh Bank on Monday said that the exporters would be allowed to pay instalments of foreign loans from their respective export retention quota accounts. The BB issued a circular to authorized dealer branches of all banks saying that from now on an exporter would be allowed to pay his or her company or subsidiary companies’ foreign loan from the ERQ fund. The exporters earlier paid the instalments of foreign loan converting the local currency Taka to the US Dollar. ERQ account is the portion of export earnings that an exporter saves as foreign currency. With this account balance, exporters were earlier allowed to promote their businesses abroad, open liaison office, and cover import cost of raw materials and machineries without needing prior approval of the BB. A BB official told New Age on Monday that the central bank had taken the initiative to liberalize the country’s foreign exchange regime so that the businesspeople would be able to settle foreign exchange transactions easily.

Source: http://www.newagebd.net/article/15655/exporters-can-repay-foreign-loans-using-erq-fund#sthash.jrDhDrLW.dpu