United News of Bangladesh

Bangladesh Bank Governor Dr Ahsan H. Mansur said all Islamic banks will be merged into two entities. He said, ‘political interference in banks will be stopped so that no one can establish a reign of loot.’ He said this at the 10th Annual Banking Conference at BIBM at Mirpur on Wednesday. The governor said, ‘Both banks and non-bank financial institutions need reforms because of irregularities, scams and failure of good governance.’ Foreign investors express keen interest in Bangladesh: BIDA For this, after the political change on August 5 last year, Bangladesh Bank took the initiative to form a task force, introduce new laws and amend existing laws such as the Bank Companies Act, he pointed out. As a result, some of the looted banks have started to turn around, but several banks are in a state of collapse, said  Mansur. Noting that the condition of all banks is not bad, but the condition of those that are bad is very bad, he said. The governor said, "No one will be allowed to escape by looting bank money and political interference in banks will be stopped." He also said, "The central bank will intervene in the bank board in the interest of the customers and the board of another bank will be dissolved in the next few weeks.”

Initiatives are underway to enhance Bangladesh Bank’s authority in resolving troubled banks and stabilising the financial sector, officials said. Several weak banks are deteriorating further due to liquidity being tied up with industries linked to the S Alam Group, which has almost defaulted. Bangladesh Bank, the country’s central bank, recently disclosed that approximately Tk 3.45 lakh crore in loans have defaulted within the banking sector. This figure is expected to rise further once the assets of these weak banks are assessed. A significant portion of the defaulted loans belongs to troubled banks. The central bank has already appointed auditors to evaluate the asset quality of these institutions to determine their future. Election Commission rejects 20 reform proposals citing threat to authority A new law is being introduced to manage the country’s struggling banks, which may involve mergers or liquidations. To this end, Bangladesh Bank has finalised the draft of the Bank Resolution Ordinance 2025, which will grant the central bank the authority to oversee financial institutions, including banks. Bangladesh Bank Governor Dr Ahsan H Mansur recently stated that Bangladesh had witnessed one of the world's largest banking sector scams due to the abuse of state power, leading some banks to the brink of collapse. He explained that auditors—both domestic and international—are conducting assessments in consultation with the World Bank. Once the asset evaluations are completed, Bangladesh Bank will decide the fate of these banks. Dr Mansur said, “We do not yet know the true quality of the assets held by some troubled banks. However, a preliminary investigation suggests that over 80% of their loans were issued to a single group, while the remaining deposits were allocated to benefit the same group’s affiliates.” He pointed out that some banks would struggle to survive as their liabilities exceed their assets. Restoring Trust in the Banking Sector Dr Mansur emphasised the need to restore public trust in banks, stating that Bangladesh Bank will take all necessary measures to achieve this. A central bank official noted that most troubled banks are relying on loans from Bangladesh Bank, as their recovery rate is alarmingly low. These banks issued loans in violation of standard banking regulations, leading to their inability to recover despite liquidity support from the central bank. What Lies Ahead for Troubled Banks? A new law is being introduced to manage the country’s weak banks, potentially involving mergers or liquidations. Bangladesh Bank has finalised the Bank Resolution Ordinance 2025, which was recently published on the Financial Institutions Division’s website, inviting feedback from stakeholders. The draft ordinance states that Bangladesh Bank must be granted resolution powers to ensure financial stability by safeguarding depositors’ interests and addressing capital or liquidity risks, insolvency, or threats to a bank’s existence. Consequently, efforts are underway to finalise this law. Surge in substandard products in Bangladesh exposes gaps in govt oversight The ordinance also specifies that in the event of a conflict with existing laws, its provisions will take precedence. Under the ordinance, a 'bridge bank' will be established to manage struggling financial institutions. This entity, created by Bangladesh Bank, will oversee the operations of a failing bank to maintain uninterrupted banking services throughout the resolution process. The bridge bank will ensure the continuity of essential banking functions while addressing financial instability until the troubled banks undergo merger, liquidation, or other necessary restructuring. The draft ordinance highlights several key objectives, including: Protecting depositors' funds Minimising government financial assistance Preventing the depreciation of bank assets Reducing creditor losses Ensuring overall financial sector stability When Bangladesh Bank decides to resolve a scheduled bank, it will issue a formal notification and implement the resolution mechanism under this ordinance. The proposed legislation empowers the central bank to transfer shares, assets, and liabilities of the resolved bank to a third party. Current Weak Banks in Bangladesh As of November 2024, the following banks have been identified as weak: First Security Islami Bank’s Islami Bank Bangladesh PLC Social Islami Bank Union Bank Global Islami Bank Second report of committee to reform NBR expected next month, focusing on automation National Bank Exim Bank ICB Islami Bank Bangladesh Commerce Bank NRB Bank Padma Bank Among these, Islami Bank Bangladesh PLC has shown signs of recovery, benefiting from a large customer base and strong public support. The bank has regained customer confidence domestically and internationally, as evidenced by its leading position in remittance inflows. Causes Behind the Failure of Weak Banks High levels of bad debt Insufficient liquidity Weak management Financial irregularities and corruption Inability to compete in the market A bank is classified as weak when its liquidity or solvency is compromised. This can occur if its financial resources, risk profile, or business model deteriorates significantly. Dr Selim Raihan, a professor of Economics at the University of Dhaka and Executive Director of the South Asian Network on Economic Modelling (SANEM), pointed out that banking sector reforms have taken place worldwide, including in the United States. "As per global practice, weak banks can be merged and in some cases, multiple troubled banks are consolidated under a stronger institution for better management. This has happened in Bangladesh before, particularly after independence," he said.

Bangladesh Bank Governor Ahsan H Mansur has unveiled startling details about money laundering activities, including the illicit transfer of $20 billion abroad by a Chattogram-based entity. Speaking at the Branding Bangladesh event in the capital on Saturday, the Governor highlighted the steps being taken to recover the siphoned off funds and strengthen the country’s economic governance framework. He pointed to a single case where $20 billion was transferred abroad illegally, marking it as one of the largest instances of money laundering in the country’s history. Governor Mansur said that improved governance has significantly curbed capital flight, but recovering the stolen funds remains a priority for the authorities. Former ED Ahsan Ullah joins central bank as advisor to the Governor “We are collaborating with international authorities to retrieve the siphoned money,” Mansur said, adding that discussions with the FBI and other foreign agencies are ongoing. To expedite the process, Bangladesh is also engaging foreign legal experts to tackle the complexities of international law. Global Collaboration to Tackle Laundered Funds Acknowledging the scale of the challenge, Mansur emphasised the importance of global cooperation. “Foreign organisations have shown willingness to assist us in recovering the laundered money,” he stated. The ongoing investigations underline the government’s commitment to bringing perpetrators to justice and recovering public assets lost through illicit financial outflows. The Governor linked the economic consequences of such financial crimes to broader issues, such as exchange rate manipulation. BB Governor acknowledges failures, achievements in financial sector He cited concerns over certain entities in Dubai exploiting the remittance process to influence currency rates. “This manipulation is harmful to our economy and needs to be addressed with strict oversight,” Mansur warned. Mansur commended the introduction of a 2.5% incentive on remittances sent through banking channels, which has contributed to a surge in remittance inflows despite political uncertainties. He, however, reiterated that ensuring transparency in financial systems and combatting laundering remain integral to the nation’s economic growth. Many struggling banks recovering: Bangladesh Bank Governor The governor emphasised the importance of bolstering the workforce’s skills to increase remittance inflows further. While these goals are ambitious, Mansur expressed optimism about achieving them with proper governance and international collaboration.

Bangladesh Bank (BB) Governor Dr Ahsan H Mansur said that the central bank will not allow any industries to be closed for the fault of its entrepreneurs. He said the institutions are national assets. Here, arrangements will be made to run the institutions whether the actual owner is there or not. Because many people are working in these institutions, they (companies) have a relationship with banks as they have a relationship with manufacturing, which cannot be separated. The governor said this while speaking at a press conference at the central bank headquarters on Monday to brief journalists on the latest update on the banking sector. He said Islami Bank is a turnaround and the bank collected around Tk5000 crore under the new board of directors restructured by the BB. Regarding S Alam and Beximco governor said, “We have to look at it from a different perspective. Individuals and institutions are different. But we will also try our best to prevent fund diversion.” Islami Bank to issue new shares, sell S Alam Group's seized ones  “I will not allow any industry to be shut down. It is very easy to shut down an industry, but building it is difficult and takes time. The country benefits from the institutions. So, we don't want to fail. We will not allow institutions to fail,” he pointed out. Meanwhile, the governor said, “Haste or emotion excites people for a short time. But running the country with emotions does not bring good results. I have to be realistic, and bring about change by formulating the right policies and implementing them.”  

A fast-moving brush fire near Yosemite National Park exploded in size Saturday into one of California's largest wildfires of the year, prompting evacuation orders for thousands of people and shutting off power to more than 2,000 homes and businesses. The Oak Fire started Friday afternoon southwest of the park near the town of Midpines in Mariposa County and by Saturday had grown to nearly 19 square miles (48 square kilometers), according to the California Department of Forestry and Fire Protection, or Cal Fire. It erupted as firefighters made progress against an earlier blaze that burned to the edge of a grove of giant sequoias in the southernmost part of Yosemite park. Read: France, Spain fight spreading wildfires as Europe swelters Evacuation orders were put in effect Saturday for over 6,000 people living across a several-mile span in the sparsely populated, rural area, said Daniel Patterson, a spokesman for the Sierra National Forest. Gov. Gavin Newsom proclaimed a state of emergency for Mariposa County on Saturday due to the effects of the Oak Fire. More than 400 firefighters were battling the blaze, along with helicopters, other aircraft and bulldozers, facing tough conditions that included hot weather, low humidity and bone-dry vegetation caused by the worst drought in decades, Patterson said. “Explosive fire behavior is challenging firefighters,” Cal Fire said in a statement Saturday that described the Oak Fire's activity as “extreme with frequent runs, spot fires and group torching.” By Saturday morning, the fire had destroyed 10 residential and commercial structures, damaged five others and was threatening 2,000 more structures, Cal Fire said. The blaze prompted numerous road closures, including a shutdown of Highway 140 between Carstens Road and Allred Road — blocking one of the main routes into Yosemite. California has experienced increasingly larger and deadlier wildfires in recent years as climate change has made the West much warmer and drier over the past 30 years. Scientists have said weather will continue to be more extreme and wildfires more frequent, destructive and unpredictable. “The fire is moving quickly. This fire was throwing embers out in front of itself for up to 2 miles yesterday,” Patterson said. “These are exceptional fire conditions." The cause of the fire was under investigation. Pacific Gas & Electric said on its website that more than 2,600 homes and businesses in the area had lost power as of Friday afternoon and there was no indication when it would be restored. “PG&E is unable to access the affected equipment," the utility said. A shoeless older man attempting to flee the blaze on Friday crashed his sedan into a ditch in a closed area and was helped by firefighters. He was safely driven from the area and did not appear to suffer any injuries. Several other residents stayed in their homes Friday night as the fire burned nearby. Meanwhile, firefighters have made significant progress against a wildfire that began in Yosemite National Park and burned into the Sierra National Forest. The Washburn Fire was 79% contained Friday after burning about 7.5 square miles (19.4 square kilometers) of forest. It was one of the largest fires of the year in California, along with the Lost Lake Fire in Riverside County that was fully contained in June at 9 square miles (23 square kilometers) The fire broke out July 7 and forced the closure of the southern entrance to Yosemite and evacuation of the community of Wawona as it burned on the edge of Mariposa Grove, home to hundreds of giant sequoias, the world's largest trees by volume.   Wawona Road is tentatively set to reopen on Saturday, according to the park website.

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has sought the support of Bangladesh Bank (BB) in continuing the growth momentum of the RMG industry by facing current challenges, especially the impacts of the ongoing Russia-Ukraine conflict on the global economy. BGMEA President Faruque Hassan made the request when he called on newly appointed Governor Abdur Rouf Talukder at the BB office in Dhaka on July 21. BGMEA Vice President Md. Nasir Uddin, Directors Asif Ashraf, Barrister Vidiya Amrit Khan, Neela Hsone Ara were also present at the meeting. Read BGMEA, Kuhu to take Bangladeshi culture, heritage to global arena with garments The BGMEA leaders congratulated him on his appointment as Governor of Bangladesh Bank, expressing hope that his extensive experience and expertise in handling financial sector would help him to steer the central bank prudently and efficiently that would contribute to strengthening economy of Bangladesh. They had discussion the on present situation of the apparel, especially problems being faced by the RMG industry and possible measures to address them. They also apprised the BB Governor about the renewed vision of BGMEA that aims to drive the growth of the RMG industry forward in a sustainable manner that will positively impact the economy, the environment and the lives of peoples. Read BGMEA participates in Texworld to explore opportunities in US market BGMEA President Faruque Hassan said the support of Bangladesh Bank would be instrumental in realizing the vision which is aligned with the government vision of sustainable development. He expressed thanks to the Bangladesh Bank for coming forward necessary with policy support for the garment industry at times when the sector needed them. He hoped the central bank would continue its cooperation for the development of the apparel industry in the coming years. Read BGMEA congratulates newly appointed Bangladesh Bank Governor

The newly appointed Governor of Bangladesh Bank Abdur Rauf Talukder on Tuesday met President Abdul Hamid at Bangabhaban in the evening. The new governor sought the President's full cooperation and guidance in discharging his duties. President Hamid said that proper financial management is very important to protect economic stability in the context of the Corona epidemic and Russia-Ukraine war. He suggested strengthening the activities of Bangladesh Bank in this regard. The President said it is important to take effective steps to ensure transparency and accountability in the activities of various financial institutions and to expand and develop the domestic financial market. Read: Rauf sets 3 priorities as new governor of Bangladesh Bank The President expected that the new Governor will perform professionally to establish Bangladesh Bank as a true regulator of the financial sector. President's Office Secretary Wahad Barua, Military Secretary Major General SM Salahuddin Islam and Joint Secretary Md. Wahidul Islam Khan were present.

New Bangladesh Bank governor Abdur Rauf Talukder  has started his first day at work. He arrived at the central bank premises at 10 am on the first working day on Tuesday after the Eid holidays. The new BB governor paid homage to Father of the Nation Bangabandhu Sheikh Mujibur Rahman by placing a wrath in front of his portrait on Bangladesh Bank premises. Later he exchanged greetings with the officials of the central bank. Read: Ensure uninterrupted ATM, POS, internet banking , MFS during Eid vacation: BB On June 11, senior secretary of the Finance Division Abdur Rauf Talukder was appointed as the new governor of Bangladesh Bank. Earlier, the Financial Institutions Division of the Ministry of Finance issued a circular appointing him as governor for four years. Rauf Talukder joined the Bangladesh Civil Service in February 1988 (BCS 1985 batch). He held various government posts in his long and colorful career. He worked in the finance division for more than 18 years before taking charge as the finance secretary on July 18, 2018. In addition, he served in the Ministry of Industry, Ministry of Food and Ministry of Information.

The government has appointed Abdur Rouf Talukder, senior secretary of finance division at the Ministry of Finance, as the new governor of Bangladesh Bank for a 4-year term. He will succeed the central bank governor Fazle Kabir whose term expires on July 3. The Financial Institutions Division of the Finance Ministry on Saturday issued a circular in this regard notifying the appointment in public interest. Also read: Inflation, unstable forex rate major challenges: BB governor According to the article 10(3) and 10 (5) of Bangladesh Bank Order 1972 (president's order 172) the new governor will be appointed on condition of taking retirement from the public service and abandoning all work relationships with all other institutions and associations, it said. He has been appointed for the next four years from July 4 or the day of joining, said the notification. Talukder joined the Bangladesh Civil Service in February, 1988 (BCS 1985 batch). He worked more than 18 years in Finance Division before elevating to the position of Finance Secretary on 17 July 2018.  Also read:Fazle Kabir reappointed BB governor for next 2 years Apart from his long career in Finance Division, Talukder has served in the Ministry of Industries, Ministry of Food, and Ministry of Information.  He also worked at Bangladesh High Commission, Kuala Lumpur as First Secretary (Commercial).

Governor of Wau State in South Sudan Angelo Taban Biajo has highly appreciated the role of the Bangladesh peacekeepers. The Governor lauded the humane services offered by Bangladesh peacekeepers in Wau and expressed their desire to establish cooperation between Wau province and Bangladesh in different areas like education, ICT and agriculture. The local Governor of Wau along with the provincial Ministers met Foreign Minister Dr AK Abdul Momen at the UNMISS compound in Wau province of South Sudan on Friday. READ: Bangladeshi peacekeepers boost country's image globally through dedication, efficiency: FM The Governor suggested that more female personnel may be deployed in the Bangladesh contingent. The Foreign Minister visited the Bangladesh contingent (BANBATT 4) deployed in the Wau province of South Sudan. Deputy Force Commander of UNMISS and other Bangladesh high officials of UNMISS as well as Bangladesh non-resident Ambassador to South Sudan and Foreign Ministry officials were present. Upon his arrival at the UNMISS compound, the Foreign Minister was presented with a guard of honour by a smart contingent of the Bangladesh Peacekeepers. The Bangladesh Contingent organized spectacular fits which were displayed by Bangladesh Peacekeeping members. Both male and female performers displayed their acrobatic and defensive skills. Dr Momen made an address to the Bangladesh Peacekeepers at the Bangladesh contingent.