United News of Bangladesh

Bangladesh Bank Governor Dr Ahsan H Mansur on Saturday said the new commercial bank, formed through the merger of five Shariah-based banks, is set to be officially launched this week. The Governor made the remarks while speaking as the chief guest at the ‘4th Economic Summit’ held at a city hotel on Saturday. Vernacular daily Bonik Barta organised the summit titled ‘Economies’ Future Trajectory and Political Commitment’. Dr Mansur emphasised the significant economic challenges facing the current government, noting that future elected governments must fully comprehend these ‘accumulated problems’. To ensure good governance, he said, the next elected government must guarantee the full independence of the central bank. Bangladesh Bank orders pay cuts for Sammilito Islami Bank’s employees The Governor also advocated for a separate salary structure for Bangladesh Bank employees to ensure effective governance, monitoring, and supervision, pointing out that approximately 130 countries have already adopted this global practice for their central bank staff. Dr Mansur highlighted the urgent need to develop the bond market and capital markets for sourcing long-term industrial investment. “Banks cannot be the only source for industrial investment. When it happens, defaulted loans will shoot up. In Bangladesh, it is happening now,” he warned. In a significant announcement for the business community, the Governor said Bangladesh Bank has withdrawn all restrictions and barriers on opening Letters of Credit (LCs). There are now enough US dollars in banks, allowing businesses to open LCs for any amount, he mentioned. Dr Mansur noted a curious trend: despite the removal of restrictions, the monetary volume of LC openings has decreased while the quantity of goods imported has increased. He attributed this change to the central bank's actions in stopping money laundering through over-invoicing of imported goods. The event also featured speeches from other prominent figures, including Director General of BIDS Professor Dr AK Enamul Haque, Chairman of Ha-Meem Group AK Azad, CEO of City Bank Masrur Arefin, and President of BSMA and Chairman of GPH Group Mohammad Jahangir Alam.  

The President of the Bangladesh Chamber of Industries (BCI), Anwar-ul-Alam Chowdhury Parvez, on Thursday strongly contested the narrative that primarily blames business owners for the staggering rise in Non-Performing Loans (NPLs), arguing that the entire responsibility should not be placed on them. Speaking at the Policy Research Institute (PRI)’s 'Monthly Macroeconomic Insights' seminar, Parvez stated, "The business environment is currently not entrepreneur-friendly. To pay off previous debts, entrepreneurs are being forced to take out new loans, which further increases the risk of default." He specifically pointed to a recent policy change in loan classification as a major factor contributing to the NPL spike. "Previously, the classification period for a loan was six months. Now, it has been reduced to three months. Consequently, any loan not repaid within three months is now immediately classified as non-performing," he said. The BCI President’s remarks came as the keynote paper, presented by PRI Chief Economist Dr. Ashikur Rahman, revealed the alarming scale of the financial crisis. Dr. Rahman reported that the country’s current volume of non-performing loans stands at Tk 6.44 lakh crore, which is approximately 36 percent of the total outstanding loans. Furthermore, he warned that the total volume of distressed assets in the banking sector could reach Tk 9.50 lakh crore, underscoring significant weaknesses in asset recovery mechanisms. Dr. Rahman cautioned that a high NPL volume could lead to a future "credit crunch" and negatively impact overall investment. To stem the rising tide of defaults, business leader Parvez urged the government to improve the country's business climate by focusing on key structural issues. He called for-improving the law-and-order situation, resolving the persistent energy crisis, stopping the 'mob culture and ensuring consistent policy support for entrepreneurs. He warned that "NPLs will increase further" if these fundamental issues are not solve immediately. The seminar, which brought together business leaders and economists, was chaired by PRI Chairman Dr. Zaidi Sattar. Dr. Zaidi Sattar, Chairman of PRI, chaired the event. In his remarks, Dr. Sattar highlighted that, “The rising REER index since May should be concerning to the exporter community as it indicates erosion of competitiveness. Bangladesh Bank can no longer purchase dollars from the market to depreciate the taka; therefore, loosening import restrictions is the only viable option. This would also benefit exporters. More vibrant imports would support better exchange-rate management under the current flexible regime and contribute to a more dynamic export environment.” The discussion featured insights from a distinguished panel comprising Dr. Nasiruddin Ahmed Former Chairman, National Board of Revenue (NBR), Dr. AKM Atiqur Rahman, Professor, North South University, Dr. Wasel Bin Shadat, Research Director, BUILD, and Amrita Makin Islam, DMD, Picard Bangladesh Limited, Director, LFMEAB. Dr. Wasel mentioned, “Compliant taxpayers are being penalized, which goes against the principle of tax justice. This is one of the main reasons why 85 percent of the economy remains informal.” Moreover, election manifestos across political parties fail to address the economic situation with sufficient seriousness, he said. Dr. Nasiruddin Ahmed argued that tax policy should be formulated by politicians and the business community rather than bureaucrats, some of whom he believes contribute to the problem. He also highlighted employment and the lack of quality, job-oriented education as major national concerns that the next government must address. Atiqur Rahman noted that without the July mass uprising, the true scale of rising NPLs would have remained hidden, raising doubts about the economy’s ability to sustain itself. He emphasized the urgent need for export diversification beyond RMG, warning that potential Trump-era tariffs and a Real Effective Exchange Rate (REER) above 6 percent are already weakening competitiveness.

Bangladesh Bank has ordered a reduction in the salaries of employees from the five banks that have been merged to form the new 'Sammilito Islami Bank' (Combined Islamic Bank). Sammilito Islami Bank’s Assistant Spokesperson Shahriar Siddiqui on Thursday said, "The decision to cut the salaries of employees of the five banks included in the new Sammilito Islami Bank was taken while allocating Tk350 crore in liquidity support." He explained that the salaries of the banks' employees depend on the depositors' funds, citing an example, "Last year, First Security's income was negative. Yet, they paid salaries amounting to Tk650 crore from depositors' funds. Employees of FSIB and SIBL are currently able to withdraw only a portion of their salaries." The Governor has instructed the swift implementation of this measure due to the banks' severe liquidity crisis and financial irregularities. The spokesperson, however, clarified that this decision is part of the restructuring process and is temporary. Once the situation normalises, the officials will receive market-based salaries, he added. Earlier, on November 5, Bangladesh Bank declared five financially troubled Shariah-based banks as ineffective and appointed administrators. The banks are: Exim Bank, Social Islami Bank, First Security Islami Bank, Union Bank and Global Islami Bank. Later, on November 9, the central bank's board, chaired by Governor Dr Ahsan H Mansur, granted a preliminary license during a special online meeting to the new Shariah-based state-owned bank, 'Sammilito Islami Bank,' to operate after merging the five weak banks.

For Europe, money is as crucial to Ukraine’s survival as weapons and intelligence. But the EU’s most realistic funding solution relies on accessing billions of dollars in frozen Russian assets — the same assets U.S. President Donald Trump has suggested taking control of. An early draft of Trump’s 28-point peace proposal envisioned a reconstruction fund for Ukraine managed by the U.S., financed by $100 billion in frozen Russian assets and matched by another $100 billion from the European Union — with half of the profits flowing back to Washington. The idea caught European officials off guard, especially after years of internal arguments over what to do with Russia’s immobilized financial reserves. These assets form the backbone of European Commission President Ursula von der Leyen’s strategy to tighten pressure on Moscow and boost support for Ukraine, even as unexplained drone incidents and sabotage make governments across Europe uneasy. “I cannot imagine a future where European taxpayers foot this bill alone,” von der Leyen told lawmakers in Strasbourg on Wednesday, drawing applause. The EU has already committed close to $197 billion to Ukraine since Russia’s invasion in 2022. While countries remain divided on new funding, nearly all agree on tapping Russian assets to meet Kyiv’s projected $153 billion budget and defense needs for 2026–27. Most of those assets — worth about $225 billion — sit at Euroclear, a major financial clearinghouse in Brussels. A plan with perks — for Washington Trump’s assertive style has left many EU officials convinced the U.S. wants a fast settlement that leaves Europe to finance and facilitate it, while the U.S. benefits financially. Analysts describe the initial proposal as a U.S. attempt to seize control of the assets just as Washington and Brussels reopen trade talks. Agathe Demarais of the European Council on Foreign Relations compared the idea to a “signing bonus” for a peace deal leaning heavily in Moscow’s favor. Fabian Zuleeg of the European Policy Centre called the proposed U.S. takeover “outrageous,” though he noted Europeans might still accept it “if that’s the price of a genuinely good agreement.” Following high-level discussions among the U.S., Germany, France, the U.K. and the European Commission, the investment scheme was removed from the latest draft. Russia has already dismissed the new version outright. Kirill Dmitriev emerges as key figure in Russia’s Ukraine peace plan Belgium’s pivotal role Experts say the EU could strengthen its negotiating leverage by moving quickly to claim the frozen assets before Washington intervenes. “If the EU acts first, it may sharply reduce Trump’s appetite for a poor-quality deal,” Demarais argued. Von der Leyen’s Commission wants the EU to take legal ownership of the assets and issue Ukraine a loan to be repaid only if Russia pays war reparations. But much depends on Belgium. Euroclear — where most of the funds are held — is based there, and Belgian Prime Minister Bart De Wever has long refused to approve using the assets as collateral for major Ukraine loans, warning of potential Russian retaliation. “We are a small country, and retaliation could hit us hard,” he said in October. Belgium’s hesitation has also been tied to internal political disputes over high national debt. With a domestic compromise reached last week, EU officials from across the bloc hope De Wever may now soften his stance. After a meeting in Brussels on Wednesday, Sweden’s Foreign Minister Maria Malmer Stenergard stressed urgency: “Time is running out. This is the only realistic financing option that truly matters and the fairest for taxpayers.” EU foreign policy chief Kaja Kallas echoed that sentiment, noting strong support for Belgium. “It would send the clearest message to Moscow that it cannot wait us out. We must act quickly,” she said. EU leaders, including De Wever, will revisit the issue at a Dec. 18 summit in Brussels, where seizing Russia’s frozen assets will be a major topic of debate. Source: AP 

Alibaba Group reported a strong 34% rise in cloud business revenue for the July–September quarter, powered by soaring demand for artificial intelligence technologies. However, the company’s overall performance grew at a slower pace. Total revenue increased only 5% year-on-year to 247.8 billion yuan ($35 billion), while profit tumbled 52% as aggressive price competition in China’s e-commerce and food delivery markets weighed on short-term earnings. Rival JD.com also saw its net profit drop 55% over the same period. Once focused mainly on e-commerce, Alibaba has shifted heavily toward cloud services and AI. Earlier this year, it committed to investing at least 380 billion yuan ($53 billion) over three years to strengthen its AI and cloud infrastructure. CEO Eddie Wu said Tuesday that heavy investments in AI were a major factor behind the cloud division’s rapid growth, which outpaced the 26% increase recorded in the previous quarter. The company noted that AI demand continues to rise sharply and hinted that total AI investment may ultimately exceed its initial 380 billion yuan target. Alibaba also announced Monday that its upgraded AI chatbot, Qwen — pitched as a competitor to OpenAI’s ChatGPT — reached 10 million downloads within a week of its public release. China's Alibaba sees revenue surge on back of artificial intelligence, e-commerce Investor sentiment was positive: Alibaba’s Hong Kong-listed shares rose 2% on Tuesday, while its U.S.-listed shares climbed 2.4% before the New York trading session. The stock has surged more than 90% this year amid confidence in the company’s AI momentum. Across the broader tech sector, Chinese firms have been rapidly advancing in AI, especially since startup DeepSeek disrupted the landscape and challenged U.S. dominance. Recent earnings have varied: Tencent posted a robust 15% revenue increase, while Baidu saw a 7% decline compared with last year. Analysts, meanwhile, continue to warn of a potential AI bubble, though strong results from Nvidia last week provided some reassurance. Source: AP 

After opening on a positive note, the Dhaka Stock Exchange (DSE) closed Tuesday’s session in the red, while the Chittagong Stock Exchange (CSE) managed to maintain its upward momentum. At the DSE, the key index DSEX dropped by 6 points at the end of the day, though the other two indices advanced — the DSES gained 2 points and the DS30 rose by 6 points. Most issues saw price declines, with 227 companies losing value against 129 gainers, while 30 issues remained unchanged. The turnover inched up slightly to Tk 636 crore, compared to Tk 635 crore the previous day. In the block market, shares worth Tk 16 crore were traded across 25 companies, with Simtex Industries PLC alone offloading shares worth Tk 5 crore. Simtex Industries PLC topped the DSE gainers’ list with a 10% price rise, while People’s Leasing and Financial Services Ltd hit the bottom, falling 9%. Meanwhile, the CSE closed higher, with its all-share price index CASPI advancing by 114 points. DSE rebounds; index tops 5,000 after 20-day dip The port-city bourse saw 125 issues gain, 53 decline, and 15 remain unchanged. The turnover at the CSE stood at Tk 21 crore, up from Tk 19 crore in the previous session. New Line Clothings Ltd led the CSE gainers with a 10% jump, while United Power Generation & Distribution Company Ltd ended as the biggest loser, slipping nearly 10%.

Bangladesh Bank (BB) has further expanded the scope of policy support available to classified loan borrowers. All loans classified as adverse (defaulted) on upcoming November 30 will now be eligible for rescheduling under a special facility. This new concession aims to help restructure the business and financial framework of distressed institutions. The central bank's Banking Regulations and Policy Department (BRPD) issued a circular in this regard on Monday, November 24. Extended Tenure and Grace Period: The new directive states that classified loans as of November 30, 2025, can be rescheduled for a maximum term of ten (10) years, with the provision to include a maximum two-year grace period. This means that borrowers with loans classified within the specified timeframe will be eligible for the new policy's rescheduling benefits. Relaxation for Unclassified and Restructuring Loans: Special Restructuring: Concessions have also been extended for unclassified term loans. These loans, including those previously rescheduled, can now be restructured by setting an additional maximum maturity period of two (02) years beyond the term described in the BRPD Circular No. 16/2022. Special Exit Facility Changes New flexibility has been introduced for the special exit facility as well: Extended Period: Alongside taking the down payment as per previous instructions (BRPD Circular No.-13/2024), the duration of the exit facility can be extended by an additional one (01) year. Repayment Obligation: While the rule for monthly or quarterly installment payments remains, the total annual repayment must not be less than 20% of the total loan amount. Classification: During this period, the loans must be displayed as 'Exit (SMA)' (Special Mention Account), and the required General Provision must be maintained. Provisions: Specific Provision maintained previously cannot be transferred to the bank's income account without actual realization, although a part of it can be transferred for maintaining General Provision. Restrictions on New Loans: No new loan facilities can be granted to the institution until the entire loan is fully paid off. Failure to Pay: If the borrower fails to pay three monthly or one quarterly installment, the loan must be classified in the usual manner.

Bangladesh's export sector has officially opened its doors to major global online marketplaces for selling their products with simplified documentation and revenue collection. In a significant move, Bangladesh Bank has granted permission for local exporters to sell goods directly overseas through platforms like Amazon and eBay, creating a vast new opportunity for the country's exporters. The central bank's Foreign Exchange Policy Department issued a circular to this effect on Monday (November 24). The central bank stated that this new policy initiative is designed to boost Bangladesh's participation in the global online marketplace. To make cross-border e-commerce more streamlined and effective, the bank has authorized exports under a Business-to-Business-to-Consumer (B2B2C) framework. According to the circular, Authorized Dealer (AD) banks can now process export transactions where the foreign consignee acts not as the final buyer, but as an intermediary platform or marketplace. This means Bangladeshi goods can now be exported through major international platforms, including Amazon, eBay, Alibaba, Etsy, or any international subsidiary or third-party warehouse. The new structure also simplifies the necessary documentation and revenue collection, such as: Registration Proof: Exporters engaging in this activity must submit proof of their registration with the relevant global platform or warehouse to their AD bank. Pricing: Since the B2B2C model typically lacks a conventional sales contract, the fair value of the exported goods can be declared based on a Proforma Invoice. Shipping Documents: If the consignee is solely a service provider, the bank may also accept shipping documents prepared in their name. The policy also eases rules for realizing export income. Funds earned from these exports are now acceptable not only through standard banking channels but also via international payment service operators. Recognizing that payments for multiple shipments may arrive collectively in platform-based exports, banks are advised to reconcile the export income using a 'First-In, First-Out' (FIFO) principle. Sector Sees Growth Potential: Industry experts believe the Bangladesh Bank's decision will significantly revitalize cross-border e-commerce. "This policy will unlock new markets for small and medium-sized exporters and strengthen Bangladesh's position in the global online marketplace," said Mohammad Hatem, President of BKMEA. The new framework is expected to play a crucial role in diversifying exports and increasing the volume of Bangladeshi products sold through international digital retail channels, he said.

The board of directors of Islami Bank Bangladesh on Monday underscored the importance of ensuring uninterrupted customer services and accelerating the collection of outstanding loans. The board, in its meeting at Islami Bank Tower, also emphasised the opening of Letters of Credit (LCs) for essential goods in line with central bank guidelines ahead of Ramadan, according to a press release. Professor Dr. M. Zubaidur Rahman, chairman of the bank, presided over the meeting. Other participants included Mohammad Khurshid Wahab, chairman of the executive committee; Md. Abdus Salam, FCA, FCS, chairman of the audit committee; Professor Dr. M. Masud Rahman, chairman of the risk management committee; Md. Abdul Jalil, independent director; Md. Omar Faruk Khan, managing director; Professor Dr. Mohammad Abdus Samad, member secretary of the shari’ah supervisory council; and Md. Habibur Rahman, company secretary.

Bangladesh Bank has set a target to establish a fully interoperable digital transaction system by July 2027, linking banks, Mobile Financial Services (MFS), insurance firms and other financial institutions, said Governor Dr Ahsan H Mansur. The Governor made the announcement at a programme titled ‘Instant Payment in Bangladesh: Unveiling Inclusion Opportunities’ held at a hotel in Dhaka on Monday. Addressing the current state of digital payments, the governor admitted that Bangladesh Bank's existing interoperable payment system, launched on November 1, has not been successful so far. "Although the interoperable system has been launched, it has not been successful because many institutions are not conducting transactions through it," said Dr Mansur. To overcome this hurdle and accelerate the shift toward a cashless economy, the central bank has signed an agreement with the ‘Gates Foundation’s Mojaloop’ to establish a new Instant Payment Platform. The agreement was virtually signed for security reasons. Introducing IIPS The new Mojaloop-based platform will be named the Inclusive Instant Payment System (IIPS). Governor Mansur highlighted the key feature of the new system: it will eliminate the need for cash-out transactions, facilitating seamless digital transfers across the entire financial ecosystem. The Governor emphasised the mandatory nature and benefits of this digital transformation, saying, “We must transform our entire transaction ecosystem into a cashless one. Banks, MFS operators, agent banking and financial institutions everyone must be brought under a single channel. The plan is to launch it by July 2027.” He pointed out that this shift to the IIPS is vital for macroeconomic stability. “In the future, there will be no alternative but to move towards this system. It will increase transparency, reduce corruption, and boost revenue collection.”