FBCCI President Sheikh Fazle Fahim on Monday termed a landmark step the central bank’s decision to buy Treasury bills and bonds from banks and non-bank financial institutions (NBFIs) to handle any liquidity crisis.
“The move is praiseworthy. It’ll assist in liquidity for banks and the NBFIs to extend support in the form of soft loans as needed for businesses --from micro and small and medium to larger sectors -- hard hit by the coronavirus pandemic,” Fahim said in a statement.
“During this difficult time such measures would encourage the entrepreneurs. On behalf of the businesses, I express my deepest gratitude towards Prime Minister Sheikh Hasina and the political and government leaderships concerned for such effective measures,” Fahim said.
On Sunday, the central bank in an unprecedented move decided that the government securities from the secondary bond market will be purchased so that liquidity management of banks and the NBFIs do not face any major challenges due to the situation arisen from coronavirus.
A notice by the central bank said it will buy the securities on the market rate, which will be determined by auction.
Under the decision, the banks will be allowed to sell their T-bills and bonds after holding their statutory liquidity ratio (SLR).
Lenders hold the majority of the excess liquidity in the form T-bills and bonds. As of December last, the excess liquidity in the banking sector stood at Tk 105,646 crore, according to the central bank.
The FBCCI president said the central bank’s move is a renewed attempt to keep the country’s economy in order despite huge challenges the country is going through under the current situation.
Media reports said the decision has come after the Reserve Bank of India had declared to buy bonds on the open market for a total of Rs 100 billion ($1.35 billion) to protect its economy from the prevailing crisis arriving from the coronavirus outbreak.
The central bank rarely purchases T-bills and bonds from banks.
Bangladesh Bank has relaxed the loan repayment system considering the impact of coronavirus on trade and business.
According to a circular issued by the central bank, classification of loan will not be changed between January 1 and June 30 this year even if anyone failed to pay back the loan as per the schedule.
The circular, issued by its Banking Regulation and Policy Department (BRPD), said businesses in Bangladesh were affected like other parts in the globe due to the coronavirus outbreak.
It is assumed that many loan recipients may not be able to repay their loans as per the schedule, it said.
In such a situation, there is an apprehension that the trade and businesses might be affected and the overall employment might be impeded.
Considering the situation, this was decided that the classification of any loan will remain unchanged until June 30 of 2020 and will be treated as it was from January 1, 2020, mentioned the BB circular.
But if the classification of the loan is improved, it could be upgraded by this time, it added.
Islami Bank Bangladesh Limited inaugurated a sub-branch at DIT road in Malibag Chowdhurypara area in the capital on Sunday.
Md Mahbub ul Alam, managing director and CEO of the Bank inaugurated the sub-branch as chief guest.
Abu Reza Md Yeahia, deputy managing director, Md Mahboob Alam, head of agent banking division of the bank and Sakhawat Hossain Shawkat, ward councilor, Dhaka North City Corporation addressed the program as special guests.
Presided over by Mizanur Rahman, Head of Dhaka North Zone, the program was addressed among others by Md Mustaqimur Rahman, head of rampura branch, Abdul Haque and Harunur Rashid Khan, businesspersons and Amanullah Aman, sub-branch In-charge.
Businesspersons, professionals and social elites were also present in the function.
Robi, a digital services provider has recently introduced ‘Robi Amar Hishab’, a cloud-based solution for Small and Medium Enterprises (SMEs).
Specially tailored for the SMEs and retailers, the cloud-based solution help traders to address and manage daily sales, inventory and stock management, generate daily sales reports, along with complete accounting solution from anywhere.
Robi’s Managing Director and CEO, Mahatab Uddin Ahmed inaugurated the solution at a programme in Chattogram Club at Chattogram recently.
Chattogram Women Chamber of Commerce and Industry’s Senior Vice President, Dr Munal Mahbub and Robi’s Chief Enterprise Business Officer, Md Adil Hossain attended the programme as special guests where Robi and Brac Bank’s SME customers were also present.
Robi Amar Hishab is available both in web and mobile app version. Besides, it comes in Bangla version in addition to the regular English version, to ensure users’ convenience.
The solution is available in two packages. The Basic package with all standard features will cost 800 taka for up to 5 users and the advanced pack will cost 1,000 taka. There are no installation charges for Robi customers.
Robi Amar Hishab is very effective for running retail businesses such as grocery shop, super shop, sanitary shop, furniture shop, hardware shop, clothing store, pharmacy, etc.