United News of Bangladesh

Bangladesh Bank on Thursday announced that it will take administrative action against officials involved in Wednesday’s ‘mob’ incident at its headquarters, according to the bank’s Human Resources (HR) policy. Arief Hossain Khan, Executive Director and Spokesperson of Bangladesh Bank, made the disclosure during briefing reporters held at the central bank on Thursday. Responding to a query from journalists, the spokesperson said the newly appointed Governor has pledged to establish good governance within the institution. "Action will be taken against those involved in 'mob culture' in accordance with the existing HR policy," Khan said. Earlier in the day, the new Governor officially assumed his duties and immediately held a high-level meeting with senior officials. Later, the press briefing was organised to share the outcomes of the meeting. During the meeting, the Governor urged officials to actively cooperate in initiatives aimed at reopening closed factories. He emphasised that the central bank would provide the necessary policy support to make the economy more growth-oriented and focused on employment generation. The spokesperson further noted that the Governor’s primary focus would be restoring discipline and ensuring a stable environment for the country's financial sector.

In a dramatic turn of events marked by confusion and protests, Md Mostaqur Rahman was appointed Governor of Bangladesh Bank within a day, replacing Ahsan H Mansur without prior announcement. Mostaqur received his appointment on Wednesday and joined office on Thursday, ending intense speculation that began earlier in the day over a possible change in the central bank’s top post. The 13th governor, Ahsan H Mansur, reportedly had no prior knowledge of his removal. Talking to reporters while leaving the central bank premises amid pressure from a section of officials and employees, he said, “I know nothing about this process. I hear that I am being removed. I did not resign. Resignation is not an issue; it would take me two seconds to resign.” Shortly after his departure, Adviser to the Governor Ahsan Ullah was also reportedly forced to leave the central bank. Within two hours, the Ministry of Finance issued a gazette notification announcing Mostaqur’s appointment. The ministry, however, did not provide a specific explanation as to why Mansur — who had one year remaining in his contract — was replaced abruptly, or why a businessman was chosen over an economist to lead the central bank. When asked why a routine institutional process took such a dramatic turn, Finance Minister Amir Khosru Mahmud Chowdhury said, “A new government has taken office. Many things are changing. Accordingly, the governor has been appointed through the normal process.” A Bangladesh Bank assistant director, speaking on condition of anonymity, said members of the Bangladesh Bank Officers’ Welfare Council had been agitating over various demands. “There was also significant pressure from the ruling party wing. Their demand was that the new government cancel all contractual appointments at Bangladesh Bank and appoint new individuals. The change in governor appears to be the culmination of that process,” he said. Mostaqur is the first businessman to be appointed governor, a position traditionally held by senior bureaucrats or economists. According to Bangladesh Bank, he holds an FCMA degree from The Institute of Cost and Management Accountants of Bangladesh (ICMAB). Sources at the central bank revealed that Mostaqur has no prior experience in a senior role at any bank or financial institution. He currently serves as the Managing Director of a sweater manufacturing company and is an active member of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA). Besides, Mostaqur holds affiliations with the Real Estate and Housing Association of Bangladesh (REHAB) and the Association of Travel Agents of Bangladesh (ATAB). He is also a member of the Dhaka Chamber of Commerce and Industry and has previously worked for a period at the Chittagong Stock Exchange. Mostaqur also served as the 23rd member of the 41-member central election management committee of the Bangladesh Nationalist Party (BNP) for the 13th parliamentary elections. Speaking to reporters on his first day at office, Mostaqur said, “Let me formally assume charge and begin work. Then everything will be said.” The leadership change comes at a time when Bangladesh’s foreign exchange reserves have increased from $25 billion to $35 billion following the fall of the Awami League government. The current reserve level is sufficient to cover six months of imports, compared to the three-month benchmark generally considered safe. After the August 5, 2024 student-led uprising that led to the ouster of the Awami League government, investigations by Bangladesh Bank revealed massive loan irregularities amounting to Tk 6.5 lakh crore. To manage the crisis, five Shariah-based Islamic banks were merged. Mansur, a former official of the International Monetary Fund (IMF), had also initiated efforts to recover laundered funds from abroad. Economists have expressed concern that appointing a businessman as governor may create potential conflicts of interest. “The biggest challenge for the new governor will be conflict of interest. How a businessman balances economic management with business interests is now the key question,” said former Bangladesh Bank chief economist Mustafa K Mujeri. Selim Raihan, executive director of the South Asian Network on Economic Modeling (SANEM), said the appointment raises concerns about the government’s commitment to banking sector reforms. ‘Govt moves to remove BB Governor, appoint successor’  “Appointing a cost accountant and businessman as central bank governor naturally raises questions — is the government truly committed to reforming the banking sector? The central bank is not only a monetary policymaker; it is also the regulator and supervisor of banks. Placing someone with a business background in such a critical role risks potential conflict of interest,” he said. He pointed out that Bangladesh’s banking sector is already grappling with high non-performing loans, governance deficits and political interference. “In this context, transparency, professional independence and regulatory experience were crucial considerations. Whether the new appointment meets those expectations or sets back reform efforts remains to be seen.” Mansur had been working to amend the Bangladesh Bank Order to strengthen the central bank’s full autonomy, a move that would restrict the finance ministry’s discretionary power in appointing governors. Economists fear the sudden leadership change could slow down or halt that reform process.  

Md. Mostaqur Rahman took over as the 14th Governor of Bangladesh Bank on Thursday. Senior officials and staff received the new governor when he reached the central bank headquarters around 11 am. “I have arrived; let me start the work first, then we can talk,” he told reporters while entering the office. Mostaqur, a Fellow of Cost and Management Accountants (FCMA), was appointed for a four-year term by the government replacing ex-governor Dr. Ahsan H. Mansur. The appointment was announced in a notification issued by the Financial Institutions Division of the Ministry of Finance on Wednesday. As per the official gazette, the appointment was made under Section 10(5) of the Bangladesh Bank Order, 1972, which requires the new governor to sever all other professional affiliations. Mostaqur served as Chairman of the BGMEA Standing Committee on Bangladesh Bank and was a member of the Chittagong Stock Exchange Ltd, according to a central bank press release. He has involved with several leading trade and business bodies, including Bangladesh Garments Manufacturers and Exporters Association (BGMEA), Real Estate and Housing Association of Bangladesh (REHAB), Association of Travel Agents of Bangladesh (ATAB) and Dhaka Chamber of Commerce and Industry (DCCI). He served on various important committees in these organisations. Mostaqur Rahman is an entrepreneur and businessman, and a senior financial governance specialist with over 30 years of leadership experience in corporate finance, export economics, institutional governance, and financial systems management. He has demonstrated expertise in financial oversight, regulatory compliance, banking-sector engagement, and capital management, it said. Moreover, he has extensive leadership experience across multiple sectors including manufacturing, real estate, agro-based enterprises, and industrial ventures, with responsibility for financial planning, investment oversight, and governance frameworks. In his various roles in industry and trade associations, he has significantly contributed to structured dialogue on financial stability, industrial financing, and economic sustainability, said the press release. Mostaqur was born in a renowned Muslim family in 1966. He obtained B.Com (Hons.) and Masters Degree from the Department of Accounting, University of Dhaka. Later, he qualified as a Cost & Management Accountant from the Institute of Cost & Management Accountants of Bangladesh (ICMAB). He is also involved in various charitable and community development activities.

The government on Wednesday appointed Md Mostaqur Rahman as the new Governor of Bangladesh Bank for a four-year term, cancelling the remaining tenure of Dr Ahsan H Mansur with immediate effect. According to separate notifications issued by the Financial Institutions Division of the Ministry of Finance, the appointment has been made under Article 10(5) of the Bangladesh Bank Order, 1972 (President’s Order No. 127 of 1972). The notification said Mostaqur Rahman will serve as Governor of Bangladesh Bank for four years from the date of his joining, subject to relinquishing all employment relationships with other institutions and organisations. New govt to continue reforms in banking sector: Bangladesh Bank governor During his tenure, he will draw salary, allowances and other benefits from Bangladesh Bank in accordance with the terms of a contract to be signed with the government. Other conditions of his appointment will also be determined by the contract, the notification added. The order appointing Mostaqur Rahman took immediate effect. Mostaqur Rahman, a fellow member of the Institute of Cost and Management Accountants (FCMA),  holds a B.Com (Hons) and Masters Degree from the Department of  Accounting, University of Dhaka. Mostaqur Rahman is a member of Bangladesh Garments Manufacturers and Exporters Association (BGMEA), Real Estate and Housing Associations of Bangladesh (REHAB), Association of Travel Agents of Bangladesh (ATAB) and Dhaka Chamber and Commerce and Industries (DCCI). Bangladesh Bank buys $123 million from 8 banks to bolster reserves Mostaqur Rahman is an entrepreneur and businessman, and a senior financial governance specialist with over 30 years of leadership experience in corporate finance, export economics, institutional governance, and financial systems management, according to Bangladesh Bank. In a separate notification, the Financial Institutions Division said the remaining tenure of Dr Ahsan H Mansur as Governor of Bangladesh Bank has been cancelled. Dr Mansur had earlier been appointed as Governor through a notification issued on 13 August 2024. The cancellation order has also been issued in the public interest and came into force immediately, the notification said.

The Association of Bankers, Bangladesh (ABB), an organisation of bank executives, has called for greater flexibility in setting service fees and an increase in loan limits for housing and car purchases. ABB representatives placed their demands at a meeting on Monday chaired by Bangladesh Bank Governor Dr Ahsan H Mansur. Senior central bank officials were also present. The association proposed raising the maximum home loan limit to Tk 5 crore and increasing the loan-to-value ratio for buying cars and flats to 90 percent. According to central bank sources, the ABB had submitted these proposals in writing over several months, prompting Bangladesh Bank to arrange the meeting. While the central bank agreed in principle to some proposals, it rejected others to protect customer interests. Some decisions from the meeting are expected to be announced soon through a circular. The proposals included calls to digitise all transactions to eliminate delays in deposits, simplify the process for banks to raise capital through Tier-2 bonds, and introduce more flexible classification and provisioning policies for loans to the Cottage, Micro, Small, and Medium Enterprise (CMSME) sector. ABB also urged that banks be allowed to write off loans that have been non-performing for one year and requested additional time to adjust the excess portion of revolving loans, with the possibility of renewal until December. Farmers forced to take high-interest loans under syndicate pressure: CAB chief The association further sought the removal of fixed service charges, allowing banks to determine their own fees, and full permanent address verification using national identity cards during account opening. Besides, it proposed raising the home loan limit to Tk 5 crore, increasing the loan-to-value ratio to 90 percent, removing the loan limit for purchasing hybrid cars with up to 90 percent financing, and setting maximum limits of Tk 40 lakh for personal loans and Tk 50 lakh for credit cards. ABB Chairman and City Bank MD Masrur Arefin, along with managing directors of several banks, including Abul Kashem Md Shirin of Dutch-Bangla Bank, Mohammad Ali of Pubali Bank, Hasan O Rashid of Prime Bank, Ali Reza Iftekhar of Eastern Bank, Syed Mahbubur Rahman of MTB, Sohel RK Hossain of Bank Asia, and Naser Ezaz Bijoy, CEO of Standard Chartered Bangladesh, among others, attended the meeting.

A draft of the Bangladesh Bank Ordinance (Amendment) has been prepared, bringing major changes to the Bangladesh Bank Order 1972, including a proposal for the governor’s appointment by the President and an extension of the tenure. A senior official of the central bank, seeking anonymity, said the draft aims to enhance the autonomy of Bangladesh Bank by altering the process of appointing the governor and revising the tenure. As per the Bangladesh Bank Order 1972, the government currently holds the authority to appoint the governor and one or more deputy governors. The proposed amendment seeks to vest this power in the President. The official said until now, the prime minister could appoint the governor without the president’s consent or advice. Bangladesh Bank likely to ease monetary policy amid interest rate shift Under the draft, the President would appoint the governor in consultation with the prime minister. Parliamentary consent for the appointment has also been proposed. Other proposed changes include revising the oath-taking process and upgrading the rank of the governor and deputy governors. Under the 1972 law, the governor’s current tenure is four years. The draft proposes extending it to six years. Speaking at a recent programme on amending the banking law, Bangladesh Bank Governor Ahsan H Mansur said major reforms are being brought to strengthen the central bank’s authority and ensure its autonomy by freeing it from political influence. Bangladesh Bank spokesperson Areif Hossain Khan also said the draft ordinance has been prepared. “Which proposals will be incorporated in the final version will be known only after the ordinance is issued,” he added.

Bangladesh Bank Governor Dr Ahsan H Mansur on Tuesday said the central bank is aiming to bring inflation down to 5 percent, a more ambitious target than the government's official goal of 6.5 percent. "If we can achieve this, we will consider ourselves successful," Dr Mansur made the remarks at the launch event of Google Pay in Bangladesh, held at a hotel in Dhaka. The event was also attended by Tracy N. Jacobson, Chargé d'Affaires of the US Embassy, and Hossain Khaled, Vice Chairman of City Bank, as special guests. Other notable attendees included Masrur Arefin, Managing Director and CEO of City Bank; Shammi Quddus, Group Product Manager at Google Payments; Mohammad Kamal, Country Manager of Mastercard Bangladesh; and Sabbir Ahmed, Country Manager of Visa Bangladesh, along with senior officials from the participating organisations. Reaffirming the central bank’s commitment to a digital future, Dr Mansur said, “We are striving to enter a cashless world, and it is already becoming possible. With the launch of Google Pay in the country, Bangladesh has taken another step forward towards a cashless society.” Merger of 5 Islamic banks at final stage: Bangladesh Bank Governor He also highlighted the importance of attracting foreign businesses to the country. “We hope there will be more gatherings of local and foreign entrepreneurs in Bangladesh. When foreigners complete work in Bangladesh, the country ultimately benefits,” he said. Talking about broader reforms in the financial sector, the Governor said initiatives are underway to gradually bring school-aged children into the formal banking system. He said risk-based audits have been completed for 20 banks, with another 7 expected to be finalised by the end of July. “Under no circumstances will the banking sector be allowed to return to its previous state.” Speaking on the exchange rate of the US dollar, Dr Mansur remarked, “The price of our country’s dollar will not be determined from Dubai. That is why the dollar has been released into the market.” Masrur Arefin, Managing Director and CEO of City Bank, commented on the partnership: “This partnership reflects our commitment to Bangladesh’s future-oriented digital payment system. We are proud to bring more smart and convenient payment solutions to our customers.” He said with the introduction of Google Wallet, City Bank has once again demonstrated its leadership in digital innovation, offering secure, modern and internationally standard financial services.

Bangladesh Bank Governor Dr Ahsan H Mansur announced that the merger of five private sector Islamic banks is at the final stage, assuring that no employee would lose their job due to the process. Speaking to a group of journalists at the Bangladesh Bank Boardroom on Sunday, the Governor said, "This merger has no connection with the elections. It is an ongoing process. We hope the next government will continue to advance this process. However, we will not wait for the elections; the five Islamic banks will be merged within the next few months." Some troubled Islami banks to merge under state ownership: BB Governor The five banks set to be merged are First Security Islami Bank, Global Islami Bank, Union Bank, Social Islami Bank and EXIM Bank. Dr Mansur emphasised that employees had no reason to worry. Some branches may be reorganised if necessary. "For banks with a higher concentration of branches in urban areas, initiatives may be taken to relocate some branches to rural areas," he added. In response to a question regarding the repatriation of laundered assets, the Governor said, "The process of recovering assets is a long-term and step-by-step procedure. It is not possible to recover these funds without a final court verdict. For this, specific information and data must be collected, and proper legal procedures followed." He went on to say, "We want our claims to be verified through the court. Action to recover funds can only be taken based on court decisions." Forex reserves targeted to hit $30bn by June: BB Governor Dr Mansur also highlighted the Alternative Dispute Resolution (ADR) method, stating, "The path for asset repatriation through amicable settlement outside court is also open. In such cases, lawyers from both sides will seek solutions through discussion. Bangladesh Bank will prepare accordingly and appoint lawyers based on the path the government determines—be it through court or ADR." The Governor mentioned that preparations are underway to conduct legal proceedings in domestic courts for the recovery of local assets and in relevant foreign courts for the recovery of overseas assets.  

The government is working to establish a dedicated fund to manage the seized and frozen money and shares of individuals who have embezzled funds through illicit means. This fund will be used to provide financial support to banks that have been affected by such looting, enabling them to repay their depositors. Bangladesh Bank Governor Dr. Ahsan H. Mansur said this while speaking at a press conference held at the Foreign Service Academy in the capital on Monday. He said the funds recovered from illegal activities outside the banking sector will be allocated for the welfare of the needy and poor people. Also present at the event were the Principal Advisor's Press Secretary Shafiqul Alam and the head of the Bangladesh Financial Intelligence Unit (BFIU), A F M Shahinul Islam. Earlier in the day, a meeting was held at the Jamuna chaired by Chief Adviser Professor Muhammad Yunus, to review the progress of bringing back laundered money. Following the meeting, the governor spoke in the press conference. Responding to a question regarding his (governor) remarks that those who have laundered money from the country will not be able to live in peace, Dr. Mansur said, "I don't believe they are at peace. They are hiring top lawyers. We have heard that S Alam will spend three crore dollars annually on his lawyers. This is not a sign of being at peace.” Next govt should continue financial sector reform, bring back laundered money: Governor “Recovering money and being at peace are two different things. We have managed to disrupt their sleep. It will take time to bring back the money because it will proceed following legal procedures," he added. There are 11 teams under the inter-agency task force currently investigating allegations of money laundering against top 10 business groups and the family of former Prime Minister Sheikh Hasina. Updated information regarding this was presented at the meeting. The 10 industrial conglomerates outside of Sheikh Hasina's family under investigation include S Alam Group, Beximco Group, Nabil Group, Summit Group, Orion Group, Gemcon Group, Nasa Group, Bashundhara Group, Sikder Group, and Aramit Group. Press Secretary Shafiqul Alam stated, "Another indication that they are not at peace is that an additional 125 medium-sized irregularities, involving those who have looted more than Tk 200 crore, are coming under investigation. “We are working with 20 foreign legal firms. The terms of reference for the work with these institutions are now being finalized,” he pointed out. Press secretary further informed that immovable assets worth Tk 1,30,758 crore belonging to those under investigation have been attached. Additionally, US$ 164 million held abroad and movable assets worth Tk 42,614 crore have been seized. Governor Dr. Mansur emphasized that this government is the first to decide to form such a fund because the seized money and assets are already under government control. He said that the fund's operations could begin soon, and legal amendments would be made if necessary. Funds belonging to banks will be returned to the banks, while money embezzled from other sectors will be used for public welfare. Regarding the feasibility of this, governor explained that funds deposited in banks as savings will be easily accessible. In the case of Islami Bank, shares worth Tk 12,000 to 15,000 crore belonging to the S Alam Group have been frozen. These shares will be transferred to a strategic investor, and the proceeds will go to the bank, which will be used to repay depositors. Default loans rise to Tk3.45 lakh crore until December: Governor

Bangladesh Bank Governor Dr Ahsan H Mansur has said Bangladesh has signed a staff-level agreement with the International Monetary Fund (IMF) to receive the next installments under the ongoing loan programme. Joining a press conference virtually from Dubai, Dr Mansur said the IMF is set to release the next two tranches totalling $1.3 billion of the $4.7 billion loan package by June 2025. He hinted at a more flexible exchange rate regime for the US dollar, adding that the market will remain unaffected as there is an adequate supply of dollars at present. IMF finally agrees to release $1.3bn loan tranche for Bangladesh in June Responding to a query, the Governor assured that easing the exchange rate will not fuel inflation, as the country’s macroeconomic stability has already been restored. “Bangladesh will receive a total of $3.5 billion in foreign loans from international agencies, excluding the IMF, by June 2025,” he added. Dr Mansur said the funding will come from the World Bank, the Asian Development Bank (ADB), the Japan International Cooperation Agency (JICA), and the International Infrastructure Development Bank. Issuing a caution against market syndicates, the Governor said Bangladesh Bank will actively monitor the foreign exchange market. He further noted that the central bank has kept a reserve of foreign currency to ensure market stability. Bangladesh’s economy holds glimmers of hope amid IMF-ADB’s lower growth forecasts: Experts Rejecting claims of an unusual spike in foreign exchange rates, Dr Mansur stated that banks and authorised exchange houses are required to submit exchange rate reports to the central bank twice a day. He reaffirmed that Bangladesh Bank will closely monitor the currency market and intervene by selling dollars when necessary to curb any abnormal rise in the dollar rate.