Appoint Ombudsman for Banking Sector
With defaulters securing important positions in the government and corporate governance remaining extremely weak, it is not possible for the Banks to recover the huge volume of non-performing loans from defaulters, observed Economists, Bankers and Civil Society Members at a function in Dhaka Saturday. The government was not sincere in its efforts to recover classified loans. It is just playing an “arranged game” in the name of loan recovery. The classified loans in the Banking sector will never be realized with this kind of game being in place or played out, according to Prof. Dr Mainul Islam. According to the Former Director General of Bangladesh Institute of Bank Management, the actual volume of classified loans would be around Tk 3.0 trillion or 30 per cent of the total outstanding loans. Most Banks were given permission on political considerations. The directors are either politicians or they have links with politics. These people are making profits on depositors’ money. Most or all the loan defaulters are wilful defaulters and they have decided not to pay back to Banks due to their political connections. According to the economist, all political parties have an agreement on allowing misappropriation of Banks’ money. So, they have never used the Bankruptcy act.
ADB offers help to establish Dhaka-Cox’s Bazar Rail Link
Asian Development Bank [ADB] will help Bangladesh Railway [BR] in establishing direct rail link from Dhaka to Cox’s Bazar by converting the metre gauge track into a broad gauge line from Dhaka to Dohazari of Chattogram. At present, BR has a metre gauge railway line from Dhaka to Dohazari of Chattogram. With the financial assistance of ADB, a project is underway to set up single-line dual-gauge [both broad and metre gauge] rail link from Dohazari to Cox’s Bazar. Official sources said ADB has assured the BR authority of providing necessary support to conduct feasibility studies and investment fund to build the dual gauge railway line. Feasibility studies on 320-kilometre corridor are now being conducted in three phases–Tongi-Akhaura, Laksam- Chattogram and Chattogram-Dohazari. ADB has assured the BR authority of investing in the corridor phase by phase starting from 2020. At present, BR can operate maximum 50 trains on the existing double line metre gauge track. A single line broad gauge has been proposed from Chattogram to Dohazari due to having less rail traffic in the Chattogram hill tracts. BR has undertaken a project to construct 3rd and 4th dual gauge lines on Dhaka-Tongi section which is used to run trains both in eastern and western zones of the country. Dhaka-Chattogram is part of eastern zone.
Digital Tech can help narrow Trade Finance gap
Digital, or financial technology – including mobile internet access, blockchain, artificial intelligence, and big data – can make international trade more efficient and support financing options. Trade finance provides exporters and importers with effective tools to manage working capital and reduce risks related to trading across borders. Around 40 percent of global international trade is financed by Banks through trade finance transactions such as letters of credit, loans, and guarantees. There are around $1.5 trillion of rejected trade finance applications globally in 2018, which is as much as 8 percent of global goods trade, according to the recent report, Trade Finance Gaps, Jobs, and Growth Survey. The Asia-Pacific region accounts for 40 percent of the total rejection. The lack of financing acts as a significant barrier to trade, particularly for small and medium-sized enterprises in developing economies. These businesses are most affected as they tend to have higher rejection rates relative to larger firms. Around half of the rejections originate from small and medium sized enterprises. The survey shows that around 44% of the firms with rejected trade finance applications were unable to find appropriate alternative financing.
96pc Samsung sets assembled locally
No Samsung mobile handsets will be imported to Bangladesh after March next year as its local plant is capable of meeting the domestic demand entirely. The plant in Narsingdi is currently assembling products that account for 96 percent of Samsung’s smartphone sales in the country. Samsung Bangladesh and its assembly partner Fair Electronics Ltd announced that the globally reputed mobile brand will start assembling its Galaxy-branded flagship products within next few months. They shared the info at a press conference at the Pan Pacific Sonargaon in Dhaka yesterday. In the last one year, the plant has assembled about 15 lakh units of smartphones, with prices ranging from Tk 7,500 to Tk 40,000. The garment sector, the tech industry has the potential to become the main driver of Bangladesh’s economy by way of assembling technologically sophisticated products. Fair Electronics is adding about 35 percent value to its products and within the next few years, the value addition will go up to 45 percent as it is planning to set up a PCBA motherboard manufacturing system. PCBA or printed circuit board assembly motherboard is the main component of products such as mobile phones, tablets, laptops, and computers.
50 Bangladesh Entrepreneurs to join PAMEX
More than 50 entrepreneurs from Bangladesh are going to join the PAMEX 2020, an international exhibition on printing and allied machinery industry in India. All India Federation of Master Printers in association with Print-Packaging Pvt Ltd is hosting the 13th edition of the biennial show from January 06-09 at Bombay Exhibition Centre in Mumbai. The exhibition is expected to witness more than 400 exhibitors and 40,000 visitors from all over India and the neighboring countries. This was announced at a press conference held at Bashundhara International Convention City in Dhaka on Saturday, according to a press release. Around 50 entrepreneurs from Bangladesh would join the expo. The size of the domestic printing industry is worth Tk 17,000 crore and it is growing steadily. Apart from traditional offset and post press technologies, PAMEX 2020 will showcase emerging technologies in various fields. The fields include 3D, robotics, RFID printing, multi-wave LED technology, which can cure conventional and LED UV inks, making UV printing more green and convenient to adopt.
MNCs not spared from bearish onslaught
Most of the listed Multinational Companies [MNCs] lost share prices ranging between 1.0 percent and 5.4 percent in last week amid the price correction witnessed by most of the local companies. The Dhaka Stock Exchange [DSE] continued declining trend in all sessions executed in last week following investors’ panic sales. As a result, the DSE broad index DSEX witnessed moderate correction and hit 35-month low. The impact of the declining market trend was also reflected in the prices of the shares of listed MNCs. Of the listed MNCs, Heidelberg Cement Bangladesh witnessed the highest price correction on the premier bourse DSE. The company’s share price declined 5.4 per cent in four sessions to close at Tk 196.40 each. The share price of RAK Ceramics [Bangladesh] declined 3.9 per cent to close at Tk 29.60 each. Grameenphone declined 3.5 per cent to close at Tk 333 each. The share price of British American Tobacco Bangladesh Company [BATBC] declined 2.9 per cent to close at Tk 1108.3 each.
Apple’s stock sets new Record
Apple shares are currently trading above the $234 mark on the intraday market, setting a new all-time high for the company. As noted by CNBC, the stock’s previous all-time high was $233.47 in October 2018. AAPL has surged nearly 10 per cent over the past month, fueled in part by multiple reports indicating that iPhone 11 and iPhone 11 Pro sales have been better than expected so far in several countries, including the United States, China, and India, something that Apple CEO Tim Cook alluded to in a recent interview. Apple is set to report its fourth quarter earnings results on Wednesday, October 30 after the stock market closes.
Local and Global Stock Indices *
|Index Name||Close Value||Value Change||Percentage Change|
|DSEX||4810.21941||↓ 52.03||↓ 1.07|
|↑ 319.92 ||↑ 1.21% |
|FTSE100|| 7,247.08 ||↑ 60.72||↑ 0.84% |
|Nikkei 225||21,798.87 ||↑ 246.89 ||↑ 1.15%|
World Commodities *
|Commodity||Close Value||Value Change||Percentage Change|
|Crude Oil (WTI)||$ 54.70 ||↑ 1.15|| ↑ 2.15%|
|Crude Oil (Brent)||$ 60.51||↑ 1.41 ||↑ 2.39%|
|Gold Spot||$ 1,489.01 || ↓ 4.98 ||↓ 0.33% |
Major Currencies Exchange Rates Movement in Last Seven Days *
|USD 1||BDT 83.0559|
|GBP 1||BDT 104.993|
|EUR 1||BDT 91.6464|
|INR 1||BDT 1.17264|
*CURRENCIES AND COMMODITIES ARE TAKEN FROM BLOOMBERG.<