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Financial interoperability necessary for growth economy; Dr Atiur
Former Governor of Bangladesh Bank Dr Atiur Rahman said ‘financial interoperability’ is necessary for maximizing the benefits of financial inclusion.
Mobile money interoperability allows customers of different mobile financial services providers to interact with each other.
“This will impart dynamism in the economy and growth will be further strengthened,” he said.
Dr Atiur also noted that due to the rolling out of services like Mobile Financial Service (MFS) and agent banking, financial inclusion has been simplified in the country.
Read:IBBL reaches Tk 1.40 trillion deposits, 1.16 trillion investments: IBBL MD
He was addressing the inaugural session of a training programme titled “Financial Interoperability in Bangladesh: Challenges and Way Forward” as the chief guest, organized jointly by the Policy Research Institute (PRI) and the Economic Reporters’ Forum (ERF), at the ERF auditorium in the capital on Wednesday.
Presided over by ERF vice president and AFP Bureau Chief Shafiqul Alam, ERF general secretary SM Rashidul Islam delivered the welcome speech.
PRI Research Director Dr Abdur Razzaque, Dhaka University Economics Department Prof Dr Bazlul H Khondker and Bangladesh Bank executive director Debdulal Roy made deliberations in the technical sessions of the programme.
Financial interoperability is such a scope which could be utilized later on after exchanging information from one system to another or making transactions, speakers said at the function.
It is like the scope for holding direct transactions between the clients of two separate MFS companies as well as the scope for transferring amounts between the clients of two separate banks, they said.
Currently such kind of transaction is called interconnectivity. The Bangladesh Bank launched interoperability among the MFS companies in October 2020, but it was halted within hours of its launching. Since then, the service is yet to be restored, they added.
Dr Atiur also said financial interoperability is necessary to adapt with the evolving changes adding that measures should be taken so that the common people can make transactions in the normal shops through scanning QR codes.
“There is also a demand for this, but the government will have to develop necessary infrastructures in this regard, which also requires investment. The Indian government has invested a lot in introducing such a system. Bangladesh also needs to do the same,” he added.
Read:DCCI urges Rwanda to import more Bangladeshi products
He opined that if the private companies make the investment instead of the government, then they would charge the clients against their will. “It will create doubt about the sustainability of the system. For this, there is a need to make proper allocations in the budget,”
Debdulal Roy said whatever transaction and exchange of information are taking place in the country’s financial sector is not interoperability, rather it is interconnection.
“Now, time has come for going towards interoperability. It will make transactions multidimensional and thus will boost the strength of the economy,” he added.
IBBL reaches Tk 1.40 trillion deposits, 1.16 trillion investments: IBBL MD
Islami Bank Bangladesh Limited (IBBL) has reached a new height of Tk1.40 trillion (1 trillion= 1 lakh crore) and Tk1.16 trillion investment, the highest in the private sector of Bangladesh.
The IBBL, first Shariah-based bank in South and Southeast Asia has stepped into 40 years with the highest deposit and investment portfolio of the country.
“This bank mobilizes one-third of the country's foreign remittance. Over the last 39 years, IBBL has been the largest financier in the country's import-export trade and SME investment,” said Mohammed Monirul Moula, Managing Director & CEO of IBBL.
Read: IBBL holds discussion to mark Independence Day
Talking with the UNB he said that the bank is playing the role of a partner in national development through a wide network across the country with 6,000 plus units and state-of-the-art banking services.
“IBBL is one of the propellers of the national economy which has created 16 million clientele clients here. The client contributed to create about 8.4 million direct employment opportunities in the country,” he added.
The 38 per cent of the country's readymade garment and 60 percent of the textile sector has been running with the bank’s investment, he said.
He added that, more than 6,000 industries, 2,000 agro-based industries, 26 jute mills, 421 shipping, 50,000 plus transports, 50 cold storages and 1,000 auto rice mills are being operated with IBBL support.
The current deposit portfolio of IBBL is Taka 1.40 trillion which is highest among the private and nationalized banks, Moula said.
“IBBL is a pioneer in foreign remittance mobilization and financing RMG industry, the two main pillars of the national economy. Presently, the investment portfolio of IBBL is Taka 1.16 trillion which is the highest in the banking sector, he added.
The IBBL CEO said that the bank has become a unique institution of trust and confidence of all people of the country irrespective of class, caste and religion.
IBBL’s market share in the country's import and export trade is 11.4 percent and 8 percent respectively.
“The Rural Development Scheme (RDS) of IBBL, a pioneer of Islamic microfinance in the world, has made 1.3 million marginalized families self-reliant. The country's top taxpayer bank has been the only bank from Bangladesh listed among the Top 1000 Banks in the world since 2012,” Moula said.
The bank has been awarded the World's Best Islamic Bank by the General Council for Islamic Banks and Financial Institutions (CIBAFI).
The IBBL MD and CEO said that the bank has been working to bring financially disadvantaged people under financial services using FinTech.
Read: IBBL Dhaka East, Central, corporate branches hold business development conference
He called upon all to avail all the financial services of IBBL including modern technology rich services, CellFin app and iBanking.
On the occasion 40th founding anniversary the IBBL organized a discussion meeting on Wednesday at Islami Bank Tower in Motijheel, Dhaka.
Mohammed Monirul Moula, MD & CEO of the bank addressed the program as chief guest. Muhammad Qaisar Ali, Additional Managing Director addressed as special guest.
Md. Omar Faruk Khan, Additional Managing Director presided over the program while Md. Mostafizur Rahman Siddiquee, Md. Altaf Hossain & Md. Nayer Azam, Deputy Managing Directors and Md. Maksudur Rahman, Senior Executive Vice President of the bank addressed.
Top executives, Head of Zones, Branch Incumbents, In-charge of Sub-Branches, clients and well-wishers joined the event through virtual platforms.
IBBL holds discussion to mark Independence Day
Islami Bank Bangladesh Limited (IBBL) organised a discussion and prayer ceremony online on Independence and National Day Saturday.
Professor Md Nazmul Hassan, chairman of the bank, addressed the programme as the chief guest.
Professor Md Salim Uddin, chairman of the executive committee, Mohammad Solaiman, chairman of the audit committee, Major General (Retd) Abdul Matin, chairman of the risk management committee of the bank, spoke as special guests.
Also read: IBBL Cumilla holds business development conference
Mohammed Monirul Moula, managing director and chief executive officer of the bank, presided over the programme.
IBBL directors Md Joynal Abedin, Professor Dr Qazi Shahidul Alam, Professor Dr Md Fashiul Alam; Shariah Supervisory Committee Chairman Professor Mohammad Gias Uddin Talukder also spoke.
IBBL directors Professor Md Kamal Uddin, Syed Abu Asad, Mohammad Quamrul Hasan, Khurshid-Ul-Alam, Mohammed Nasir Uddin, and Md Kamal Hossain Gazi were present at the programme.
Additional managing directors Muhammad Qaisar Ali, Md Omar Faruk Khan; deputy managing directors JQM Habibullah, Md Mostafizur Rahman Siddiquee, Md Altaf Hossain, Md Nayer Azam; Chief Risk Officer Mohammad Ali, and IBTRA Principal SM Rabiul Hasan also joined it.
Uzbekistan keen to invest in Bangladesh’s oil, gas exploration sector
Uzbekistan has expressed its interest to invest in oil and gas exploration sector of Bangladesh.
Uzbek energy minister’s advisor Jumaev Jasur Khudaykulovich expressed his country’s interest when he met State Minister for Power, Energy and Mineral Resources Nasrul Hamid at his office in the Power and Energy Ministry on Thursday.
Read: Hong Kong based company Campvalley to invest $ 54 million in BEPZA Economic Zone
Jumaev Jasur Khudaykulovich was leading an 8-member delegation of Uzbekistan when he met Nasrul Hamid.
The Uzbek energy minister’s advisor said that his country has vast experience in working in the petrochemical and hydrocarbon sector. It has experience to drill wells to the depth of 700 metres in the underground.
He also informed that Uzbekistan has 75 drilling rigs now working across the world of which one is now engaged in Bangladesh as well.
The advisor showed interest to work in construction of gas pipelines and in the renewable energy sector and also work with Bangladesh Petroleum Exploration and Production Company (Bapex).
Uzbekistan’s energy minister A. Sultanov has sent a letter to Nasrul Hamid expressing increased cooperation between the two countries in the energy sector and invited him to visit the Central Asian country.
Read: Contactless payment service to be available for debit, prepaid card users: BB
Appreciating the interest of Uzbekistan in energy sector cooperation Nasrul said Bangladesh can utilise the experience of the Central Asian nation in the hydrocarbon sector and Uzbekistan can provide training to Bangladeshi engineers in this regard.
Akhmedjanov Otabek Ulugbekovich, Gabov Evgeniy Hyich, Parkahoenko Alexander Nikolaevich, Minajitdinov Kuat Maratovich, Dusmukhamedov Erzhigit Daniyalovich, and Baisov Alisher Karabekovich were, among others, present in the meeting.
Merchant Bankers seek Tk 10,000 crore to sustain capital markets
The Bangladesh Merchant Bankers' Association (BMBA) sought a special fund of Tk 10,000 crore to overcome liquidity crisis in the capital market.
The BMBA has urged to provide fund assistance on easy terms through the Capital Market Stabilization Fund (CMSF) for a period of 5-7 years.
The organization sent a letter to Bangladesh Securities and Exchange Commission (BSEC) on Monday in this regard.
The BMBA president Sayedur Rahman told UNB that listed banks and merchant banks are unable to invest much money in the capital market despite their desire due to limitation of investment segment by the regulator.
Also read: Suspicious Transaction Reporting up by 43.67%: BFIU
“So, we are seeking a special fund of Tk 10,000 crore for the intermediaries. We hope that the Commission will give us this money by issuing bonds through the CMSF to support the market,” he added.
BMBA stated in the letter the market had recently become volatile despite many initiatives by the BSEC. This has put a pressure on investors to sell their shares. Adequate cash assistance is needed to restore normalcy in the market in this situation, Sayedur said.
If the funds are properly invested by market intermediaries, the current problems will be solved and the market liquidity crisis will be alleviated, BMBA said in the letter.
Also read: WB approves $120 mln loan to develop climate smart agriculture, water management
In addition, information will spread among the stakeholders that the government is working with the regulatory body for market development in this initiative. This will increase confidence among investors and keep the market moving normally, BMBA president said.
Gazette issued reducing VAT on edible oil import
The government has issued gazette notification reducing Value Added Tax (VAT) at import level by10 per cent to make it 5 per cent for soybean and palm oil.
Read: Gazette notification: VAT on edible oil withdrawn
The notification will be effective immediately until June 30.
Raise awareness about consumers’ rights: Tipu
Commerce Minister Tipu Munshi said on Tuesday called for safeguarding the rights of the consumers.
The minister was addressing as the chief guest at a discussion meeting on 'World Consumer Rights Day-2022' organized by the Directorate of National Consumer Rights Protection at Osmani Memorial Auditorium in the capital.
Read:Price manipulators to face the music: Tipu
“We all are consumers. A businessman is also a consumer. We all have to work to protect the rights of a consumer,” he said.
The government has enacted laws to protect consumer rights and the law is being strictly enforced, Tipu said.
The law enforcement is easier when the consumer is aware, so all consumers have to be aware of their rights, he said.
Read: Bangladesh keen to sign FTA with South Korea, Tipu Munshi tells Ambassador
Tapan Kanti Ghosh, Senior Secretary, Ministry of Commerce in the chair, Zakia Sultana, Secretary, Ministry of Industries, Md. Jashim Uddin, President FBCCI, Golam Rahman, president of Consumers Association of Bangladesh, among others spoke in the function.
WB approves $120 mln loan to develop climate smart agriculture, water management
The International Development Association (IDA), a concern of the World Bank, will provide USD $ 120 million for development of 'climate smart agriculture and water management project.’
Bangladesh and the World Bank on Tuesday signed a loan agreement in this regard held at the Economic Relations Division (ERD), a wing of the Ministry of Finance.
Read: World Bank keen on investing in rural development: LGRD Minister
Fatima Yasmin, Secretary, ERD Dandan Chen, acting country director of the World Bank, Dhaka Office signed the agreement on behalf of their respective sides.
The project will be implemented jointly by Bangladesh Water Development Board (BWDB) under Ministry of Water Resources, Department of Agricultural Extension (DAE) under Ministry of Agriculture and Directorate of Fisheries under the Ministry of Fisheries and Livestock.
The project is likely to end in June, 2026.
Of the total loan amount, $100 million will be provided to BWDB and $ 10 million to the DAE and the DoF each.
The WB will provide the loan from IDA19 Scale-Up Window (SUW).The financing will have a maturity of 35 years, including a 5-year grace period, said a handout.
The purpose of the loan is to rehabilitate and modernize Flood Control Drainage (FCD) and Flood Control Drainage Irrigation (FCDI) infrastructure for climate-resilient water resources management.
Read:World Bank presents its areas of interest for future projects in Bangladesh
Moreover, the project will enhance agricultural productivity and around 50 percent irrigation water will be saved in the crop field through at least 12 climate smart technologies in the project area and increase 20 percent of fish production and productivity by introducing climate smart aquaculture technology.
The WB has been providing development assistance to Bangladesh in many important sectors including health & education, energy sector, inland connectivity & logistics, eegional & global integration, urbanization and adaptive delta management sector since after having membership in 1972.
DCCI dialogue: Romania urged to hire skilled workforce & invest in Bangladesh
Speakers at a dialogue on Tuesday said that establishing a diplomatic mission of Romania in Dhaka will foster bilateral trade and investment as well as exporting of skilled workforce from Bangladesh to the East European country.
Dhaka Chamber of Commerce & Industry (DCCI) organized a dialogue on “Exploring Trade and Investment Opportunities between Bangladesh and Romania” in the capital.
Read:Suspicious Transaction Reporting up by 43.67%: BFIU
Dhaka South City Corporation (DSCC) Mayor Barrister Sheikh Fazle Noor Taposh was present as chief guest while the Mayor of Bucharest, Romania Robert Negoita was present as special guest at the function.
Taposh urged the government of Romania to establish their diplomatic mission in Dhaka that will foster bilateral trade relations to a new height.
He also hoped for an intense trade relationship between Bangladesh and Romania but for that exchange of visit of the business community is more important, he added.
Mayor of the 3rd District of Bucharest, Romania Robert Negoita called for a reciprocal relationship among the business community of both the countries.
In that case, the exchange of business delegation will enhance the communication, he said.
Romania can be the gateway to Europe for Bangladesh, and to avail this opportunity investing in Romania will boost Bangladesh’s export to Europe, he added.
He said that they can provide agriculture products and technology to Bangladesh.
“Textiles products of Bangladesh have a good opportunity in Romania. The Romanian textile sector needs skilled workforce that Bangladesh has an opportunity to export,” he added. DCCI President Rizwan Rahman said that the government of Bangladesh is now emphasizing on intensifying economic diplomacy and prioritizing global integration.
He said that the cross-border trade link of Bangladesh is in good shape with Europe, USA, Africa and Middle East. Romania has been a proven export destination of Bangladesh for a long.
“The bilateral trade between Bangladesh and Romania hovers around $49.97 million of which Bangladesh imports only $27.39 million. The trade needs to grow with a win-win situation exploiting new opportunities to expand economic cooperation in many dimensions,” he added.
He requested Romanian businessmen to source furniture, plastic, pharmaceutical, ship, jute, leather products and RMG from Bangladesh at a relatively competitive price.
Read:Bangladesh keen to sign FTA with South Korea, Tipu Munshi tells Ambassador
Bilateral Investment Treaties (BIT), signed in 1987, can be implemented to allow Romanian investors to invest in Bangladesh rewarding and competitive economic zones in the aforesaid sectors including the automobile sector, Rizwan said.
DCCI and the Romanian private sector can play pivotal roles to harness mutual potentials, he also said. To steer all potential economic cooperation, he later urged the Romanian government to resume its diplomatic mission in Dhaka.
Benjir Ahmed MP, Former President, BAIRA, Mansoor Ahmed, Senior Vice President of BKMEA, Md. Nurul Amin, Member of National Skills Development Authority (NSDA), among others, spoke at the function.
Suspicious Transaction Reporting up by 43.67%: BFIU
The Suspicious Transaction Reporting (STR) and Suspicious Activity Reporting (SAR) increased by 43.67 per cent in the fiscal year 2020-2021, said a report of Bangladesh Financial Intelligence Unit (BFIU) on Tuesday.
The BFIU annual report was presented at a view-exchange meeting at the Jahangir Alam Conference Hall, Central Bank Head Office.
Read: BFIU launched standalone website to strengthen awareness against money laundering
BFIU chief Md. Masud Biswas presided over the function. The meeting was attended by Md. Serajul Islam, Executive Director and Spokesperson of Bangladesh Bank, Iftekhar Mahmud, Programmer of BFIU and Ikramul Hasan, Joint Director.
According to the annual report, there were 30,657 STRs and SARs in the FY 2019-20, and the number increased to 5280 in the FY 2020-21.
According to the BFIU's annual report, most of the money transacted illegally was through banking channels. The amount of money transactions through other means was also immense.
Masud said that STR and SAR increased due to improving the capacity of BFIU and awareness of reporting the organizations.
Increasing the number of STR and SAR does not mean rising corruption or illegal money rather it is happening due to the rising reporting tendency and watch by BFIU.
Read: BFIU summons bank accounts update of 30 e-commerce companies
He said 26.1 per cent of the suspicious transactions were identified from the reporting of news media, he said.
BFIU chief Masud said, "This year we are going to celebrate the 20th anniversary of BFIU, which is appreciated worldwide for improving technology and money laundering identification systems.”