Dhaka, Oct 8 (UNB) - International Chamber of Commerce, Bangladesh (ICCB) President Mahbubur Rahman has said non-performing loans (NPL) are impacting capital adequacy of the banking sector.
He noted that the capital adequacy ratio (CAR) of banks, as of June, stood at 10 percent, down from 10.11 percent a quarter earlier.
The ICCB leader said capital adequacy is the primary indicator of the banks’ financial fitness and stability. “Banks are required to keep at least 11.81% capital adequacy ratio (CAR) which determines the adequacy of banks’ capital keeping in their risk exposures.”
Rahman was addressing at the closing ceremony of ICC workshop on Importance of Compliance in Trade Finance at a city hotel on Sunday, said a press release on Monday.
NPL is one of the issues that is impacting capital adequacy of the industry specially the eight state-owned commercial and specialized banks.
For decades, state-owned banks have been the prime leader to the large corporate borrowers particularly in the industrial sector of the economy, mentioned Rahman.
Since 2009, the government has injected Tk 14,505 crore into the state owned banks but they are yet to show any sign of strengthening their capital base.
On top of this of the total loan banking sector loan amounted to Tk 7,527.30 billion, of which Tk 803.07 billion or 10.67 per cent was bad debt.
And if restructured or rescheduled loans were included, NPL in the banking sector goes up to 17 percent of total outstanding loans, he added.
Rahman observed that until now, only limited action has been taken to penalise defaulters, improve risk management and strengthen bank management.
To tackle the sector's deep-rooted problems of corruption and poor risk practices further efforts needed. Bangladesh Bank must ensure following of regulatory measures by the commercial banks, he urged.
ICC Bangladesh Banking Commission Chairman & CEO, Bangladesh International Arbitration Centre (BIAC) Muhammad A. (Rumee) Ali said the non-compliance in trade financing risk is having an impact in Bangladesh’s overall risk rating.
In fact, in Bangladesh it raises the cost of accessing trade finance product in International Market.
Therefore training like this must increase the efficiency of the concerned bank officials, he added.
Helal Ahmed Chowdhury, Supernumerary Professor, BIBM & Former Managing Director, Pubali Bank Ltd thanked ICC Bangladesh for continuously arranging workshops for the bankers both at home and abroad.
Such programme allows the bankers to interact with their colleagues and learn from the experienced speakers on various issues related to banking operations, in particular international trade finance.
He opined that all the banks including the Bangladesh Bank should have appropriate yearly allocations for training their officials so that they can attend such workshop/training of international standard.
He said risk management and compliance are more important in the financial industry than ever before. For us, they are also part of building genuine relationships with our customers.
ICC Bangladesh Secretary General Ataur Rahman also spoke on the occasion. Sudhakar Sanjeevi, Senior Officer, Internal Control Department, Rakbank, UAE conducted the workshop.
A total of 103 participants attended the workshop from 30 banks.
Beijing, Oct 8 (AP/UNB) — Asian stocks declined Monday after China injected extra money into its cooling economy.
KEEPING SCORE: The Shanghai Composite Index lost 3.0 percent to 2,738.04 and Hong Kong's Hang Seng was off 0.9 percent at 26,345.90. Seoul's Kospi lost 0.4 percent 2,258.72 and Sydney's S&P-ASX 200 shed 1.2 percent to 6,113.60. Japanese markets were closed for a holiday. Benchmarks in New Zealand and Singapore gained while Jakarta declined.
WALL STREET: Prices fell amid uncertainty about U.S. interest rates. Federal Reserve chairman Jerome Powell's comment that interest rates are a "long way" from holding back economic growth prompted speculation the Fed will raise rates further. The Standard & Poor's Index lost 0.6 percent to 2,885.57. The Dow Jones Industrial Average dipped 0.7 percent to 26,447.05. The Nasdaq composite skidded 1.2 percent to 7,788.45. The yield on the 10-year Treasury note jumped to 3.23 percent, its highest since May 2011, from 3.19 percent.
CHINA RATE CUT: Beijing injected money into its cooling economy by reducing bank reserve levels. Economists say the change would free up some 1.2 trillion yuan ($175 billion) for additional lending. The central bank told banks to lend more to entrepreneurs. Chinese leaders are trying to shore up economic growth that began to cool after Beijing tightened lending controls last year to rein in a debt boom. A tariff fight with U.S. President Donald Trump has added to downward pressure on growth.
ANALYST'S TAKE: "The markets remain incredibly fragile," said Stephen Innes of currency trader OANDA in a report. "The negative equities view" applies across the board, driven by "the toxic combination of higher U.S. yields and risk aversion," he said. A boost to sentiment from China's reserve ratio cut "has given way to the reality check" of higher U.S. Treasury yields.
ENERGY: Benchmark U.S. crude tumbled 65 cents to $73.69 per barrel in electronic trading on the New York Mercantile Exchange. The contract shed 1 cent to $74.34 on Friday. Brent crude, used to price international oils, dropped 90 cents to $83.26. It lost 42 cents the previous session to $84.16.
CURRENCY: The dollar gained to 113.85 yen from Friday's 113.71 yen. The euro declined to $1.1515 from $1.1523.
Dhaka, Oct 7 (UNB) - The number 1 network of friends in Bangladesh, Airtel, has given an open invitation to all mobile users to join the largest 4G+ network with 7,300 4G+ network sites with a promise to offer the country’s best call-rate to any operator and exciting internet offers without changing their numbers through Mobile Number Portability (MNP).
As per the Government directive, Airtel had started offering the MNP service from the 1st day of October. With this service, customers can now switch to any operator without changing their 11-digit mobile phone number.
Airtel appreciates this long awaited initiative and welcomes all the customers who are in search of a strong network experience with reasonably priced voice and internet packs and other offers.
In order to switch to Airtel, the customers need to visit Airtel Experience Centres or biometric SIM sale outlets with their NID information.
Customers of other operators may also dial 01644112233 to enquire about the MNP process for switching to Airtel.
Dhaka, Oct 7 (UNB)- Islami Bank Bangladesh Limited recently inaugurated its Agent Banking outlet in Loharpool Bazar of Hathazari upazila in Chattogram.
Hathazari Upazila Nirbahi Officer, Mohammad Ruhul Amin was chief guest of the program while JQM Habibullah, FCS, Deputy Managing Director and Company Secretary of the Bank addressed the program as guest of honor.
Presided over by Md Saleh Iqbal, Senior Executive, Vice President and head of Chattogram north zone of the Bank, the program was also attended by Mawlana Mohammad Nasir Uddin Munir, Vice Chairman of Hathazari Upazila, Mohammad Sarwar Morshed Talukder, Chairman of Garduara Union Parishad, Mohammad Elias Talukder, former chairman of Garduara Union Parishad, Shimul Kanti Mahajan, Head Master of Dr. Shahidullah Academy and Sirajul Islam, social organisers.
Md Zahurul Islam, Vice President and Head of Hathazari Branch addressed the welcome speech in the program.
Local businesspersons, professionals and dignitaries were present on the occasion.
Dhaka, Oct 7 (UNB) - Finance Minister AMA Muhith on Sunday said Bangladesh will reach a greater height on economic front if Sheikh Hasina remains in power for another five years.
“If we can bring back Sheikh Hasina to power for another five years, Bangladesh will reach such a position from where it’ll turn into a prosperous country within 10-15 years,” he said while inaugurating the celebrations of the World Investor Week 2018 in the city.
Bangladesh Securities and Exchange Commission (BSEC) arranged a number of programmes, including discussions and seminars at Krishibid Institution, marking the Week from October 7 to 11. The weeklong celebration focuses on financial literacy, protection of investors particularly retail investors and awareness of investors.
The Finance Minister said he thinks that the next five years are important as different targets, including SDGs, will be achieved by and large by the time.
“If we can do so (bringing Hasina to power for another five years), the dream of making Bangladesh as a prosperous country by 2041, which is always shown by our Prime Minister, will truly be fulfilled. It’s my belief,” he said.
Mentioning that Bangladesh marked a remarkable economic development in the last 10 years, Muhith said Sheikh Hasina’s government has been in power for 10 years in a row, which is good for the nation.
About investment, the Finance Minister said the government has taken the country’s overall investment to more than 30 percent of GDP.
The private sector can play an important role in increasing the investment but the government has also some responsibilities in this regard. The government increased the public investment largely in the last 10 years, he said.
Though the investment of Bangladesh is lower compared to that of other neighbouring countries, it is expected that the investment of Bangladesh will go up to some extent further, he added.
Turning to the capital market, Muhith said it experienced major crashes on two occasions, which made all worried about the capital market. This worry led the Securities and Exchange Commission to carry out efforts to revamp the capital market in the last eight years, he added.
“I don’t say we could build a (strong) capital market in the 25 years after formation the Securities and Exchange Commission, but we could set up a foundation so that the capital market can thrive,” the minister said.
Delivering the welcome speech, BSEC Chairman Dr M Khairul Hossain said the knowledge of investors is the main element for the protection of their own investment.
Creating a congenial environment and brining good companies in the capital market are also two important elements for protecting the interest of investors, he said.
Financial Institutions Division Secretary Md Ashadul Islam also spoke on the occasion.
The World Investor Week is a global campaign promoted by the International Organisation of Securities Commissions (IOSCO) to raise awareness about the importance of investor education and protection.
This year, the Week is being celebrated for the second time across the world.