United News of Bangladesh

Bangladesh Bank (BB) Governor has assured Shariah board members of ‘full protection’ and functional independence, urging them to work without political influence to restore discipline in the country’s Islamic banking sector. “You, the members of the Shariah boards, will work independently; full protection will be provided to you by the Central Bank,” the Governor said while presiding over a high-level view-exchange meeting titled "Current Status, Challenges, and Future Way Forward of Islamic Banking" held at the central bank headquarters recently. This marked the first time a BB Governor sat with top Shariah experts, including members of the newly formed BB Shariah Advisory Board, chairmen of Shariah boards from almost all Islamic banks, and renowned Islamic scholars and academics. In his opening remarks, the Governor noted that money laundering incidents had occurred in several Islamic banking institutions in the past, primarily due to a lack of "proper supervision." He emphasized that since Islamic banking is designed to be asset-backed, such losses should not occur if the system is implemented authentically. "The fact that losses occurred is a matter of deep concern for us," he said, adding that empowering Shariah boards is the only way to re-establish effective oversight. During the meeting, Islamic scholars and experts presented a series of strategic recommendations to strengthen governance: Urgent enactment of a dedicated "Islamic Banking Act" and the appointment of a separate Deputy Governor and Executive Director at Bangladesh Bank to oversee the sector. Granting Shariah Supervisory Committees the legal right to work independently of the Board of Directors. It was proposed that the consent of at least three Shariah board members be mandatory for approving large investments. Ensuring that Shariah supervisors (Murakibs) are protected from management pressure so they can provide neutral audit reports. Establishing a Shariah Governance Framework modeled after Bank Negara Malaysia and creating a world-class research center and library under Bangladesh Bank to make Bangladesh an "Islamic Banking Hub." And finally capacity building, in the form of mandatory Shariah banking knowledge for the Board of Directors and a requirement for Bank MDs and top executives to hold recognized certificates in Islamic finance. The meeting also discussed the situation of five troubled Islamic banks (under the United Islamic Bank umbrella). Scholars urged the central bank to recognize the share value of existing shareholders to mitigate dissatisfaction and requested liquidity support on easy terms for struggling banks. The Governor concluded by stressing that banks and hospitals should operate solely as service-oriented institutions, free from political interference. He also expressed interest in hosting international Islamic finance conferences in Bangladesh, inviting world-renowned scholars like Justice Taqi Usmani. The meeting was attended by prominent scholars including Prof. Dr. Abu Bakar Rafique, Dr. Mohammad Manzur-e-Elahi, Dr. Mufti Yousuf Sultan, and representatives from almost all major Islamic and conventional banks operating Islamic wings.

Bangladesh Bank Governor Md Mostaqur Rahman on Monday stressed the need for greater focus on cottage, micro, small and medium enterprises (CMSMEs) and the agriculture sector to boost economic growth and create employment. The governor made the remarks when a Dhaka Chamber of Commerce and Industry (DCCI) delegation, led by its President Taskeen Ahmed, paid a courtesy call on him at the central bank headquarters in Motijheel. The governor said the economy has become overly dependent on a limited number of products, services and export markets in recent years, underscoring the urgency of diversification through CMSMEs and agro-based sectors. “This will help stimulate the domestic economy and generate employment,” he said, adding that high logistics and product management costs remain key drivers of persistent inflation. Highlighting broader macroeconomic challenges, the governor noted that Bangladesh’s GDP growth has been below expectations, affecting both foreign and domestic investment inflows. “There is no alternative to reforming business and trade policies and reducing the cost of doing business.” During the meeting, DCCI President Taskeen Ahmed expressed concern over the slowdown in private sector credit growth, which has declined to 6.03 percent—the lowest in 22 years. Taskeen said the current policy rate of 10 percent has pushed lending rates up to around 16–17 percent, reflecting a liquidity crunch in the banking system and making financing increasingly costly and less accessible, particularly for SMEs and manufacturing industries. To ease the situation, Taskeen proposed a gradual reduction in the policy rate to lower borrowing costs and encourage private investment. He also suggested introducing subsidised credit facilities for priority sectors, including manufacturing, export-oriented industries and SMEs. He further noted that a wide spread between lending and deposit rates—exceeding 5 percent—has eroded investor confidence and contributed to a decline in private investment. Emphasising the importance of restoring confidence in the financial sector, the DCCI president called for stronger governance in banking and financial institutions. He also raised concerns over recent changes in loan classification policy, where the timeframe has been reduced from nine months to three months, saying it has added pressure on businesses already grappling with high costs, energy shortages and weak demand. In this context, he proposed extending the loan classification period to at least six months and reconsidering loan rescheduling facilities for unintentional defaulters. DCCI Senior Vice President Razeev H Chowdhury, Vice President Md Salem Sulaiman, board members and senior officials of Bangladesh Bank were present at the meeting.

The government has initiated the process to remove Bangladesh Bank Governor Ahsan H Mansur and appoint a new chief of the central bank, according to officials at the Ministry of Finance. They said a proposal has already been sent to the Prime Minister’s Office seeking approval for the appointment of a new governor. According to the sources, a faculty member from a US university is being considered for the post. The proposal is currently awaiting the final clearance, and the officials indicated that the appointment could be finalised later in the day once the formalities are completed. Meanwhile, Financial Institutions Division Secretary Nazma Mobarek met the Finance Minister at his office at around 1:45pm, fuelling the speculation over the impending change in leadership at the central bank. New govt to continue reforms in banking sector: Bangladesh Bank governor When approached by reporters after the meeting, Nazma Mobarek declined to comment on the matter. “Please wait. I do not want to say anything right now. You will know if there is anything,” she said. There was no official statement from the Ministry of Finance or Bangladesh Bank regarding the development at the time of filing this report. Further details about the prospective appointee, including the individual’s identity and professional background, were not immediately available. Any change in the leadership of Bangladesh Bank is considered significant, given the central bank’s role in framing and implementing monetary policy, regulating banks and financial institutions, managing foreign exchange reserves and ensuring financial stability. While talking to an Adviser to the Prime Minister over telephone, he declined to comment on the matter, but he hinted that a change is imminent.

Bangladesh Bank Governor Dr Ahsan H Mansur on Tuesday called for urgent legal reforms to shield the country’s banking system from political interference, stressing that institutional independence is essential to prevent future financial irregularities. Speaking at a roundtable discussion titled ‘Impact of LDC Graduation on Banking Sector’ in Banani, Dr. Mansur highlighted a proposal to amend the Bangladesh Bank Order, submitted to the government four months ago, which he said is critical for modernizing the central bank’s regulatory framework. “It is regrettable that the amendment has not yet seen the light of day. To prevent political meddling in the future, this approval is essential. We need a modern central banking system backed by law,” he said. Read More: Bangladesh Bank reports 11% non-performing loans; actual figure is 25%: Dr Ahsan H Mansur Dr Mansur also addressed concerns about Bangladesh’s upcoming graduation from Least Developed Country (LDC) status. While some business leaders have suggested delaying the transition to manage economic challenges, the governor rejected such calls, citing Bangladesh’s strong performance across development indicators. “We should not compare Bangladesh with countries like Somalia, South Sudan, or Afghanistan. Every development index, including GDP, shows we are far ahead. Staying in the LDC group is not a matter of honor for us anymore. The nation’s goal should be to join the ranks of developing countries like Malaysia or India to gain global respect. We cannot sacrifice long-term gains for minor, short-term benefits.” The governor also criticised the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) and other trade bodies for past inaction during episodes of money laundering and the controversial ‘6–9 percent’ interest rate cap. Read More: Bangladesh Bank reverses policy, allows depositors of merged banks to earn profits “Business organisations have behaved like puppets in the past. They cheered for the 6–9 percent interest rate and remained silent when money was being siphoned out of the country. Democracy can never be strengthened if such behavior continues,” Dr Mansur said. During the discussion, AK Azad, Vice President of ICC Bangladesh and Chairman of Ha-Meem Group, expressed concerns over the country’s current contractionary monetary policy, claiming that rising interest rates have already resulted in 1.2 million job losses, with another 1.2 million potentially at risk in the next six months. Dr Mansur acknowledged that interest rates are high but attributed the situation to $20 billion being siphoned out of the country, which contributed to a rise in non-performing loans (NPLs). He said once governance improves and inflation is brought under control, interest rates are expected to ease. The International Chamber of Commerce, Bangladesh (ICCB) organised the event, with its president Mahbubur Rahman moderating and economic analysts, policymakers and business leaders in attendance.

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 Ahsan H Mansur on Monday announced that the central bank is taking steps to establish a dedicated fund of Tk 800 to 900 crore to support the country’s growing startup ecosystem. “The fund will be channeled through commercial banks,” he said at a panel discussion at the inaugural session of Bangladesh Startup Connect 2025, held at the Intercontinental Hotel in Dhaka. The event is part of the Bangladesh Investment Summit 2025, organised under the theme “Empowering Innovation, Connecting Opportunities.” The event opened with a formal inauguration followed by a keynote speech from Tanveer Ali, Chairman of Constellation Asset Management Company Ltd and Independent Director of Startup Bangladesh Ltd. Four state-owned banks to remain open on Friday The panel also featured several other speakers including Faiz Ahmad Taiyeb, Special Assistant to the Chief Adviser for the ICT Division; Chowdhury Ashik Mahmud Bin Harun, Executive Chairman of BIDA; and Shish Haider Chowdhury, Secretary of the ICT Division and Chairman of Startup Bangladesh Ltd. The session was moderated by Sadia Haque, CEO of ShareTrip. Highlighting Bangladesh’s strong potential in the startup space, Governor Mansur referenced the success of bKash and expressed optimism about the country producing more breakthrough ventures. “I want to see at least 10 unicorns like bKash in Bangladesh in the future,” he said. Shish Haider Chowdhury also shared updates on the government’s preparations for a 'Fund of Funds,' aimed at mobilising investment to reinforce the startup ecosystem. “This fund will offer critical support to early- and growth-stage startups, enabling them to scale, expand globally, and build long-term sustainability,” he said. Throughout the day, the summit will host startup pitches, policy roundtables, and sector-specific sessions focusing on FinTech, SaaS, Logistics, HealthTech, AgriTech, EdTech, and AI. A key feature of the summit is the Youth Innovation Challenge 2025, organised by Startup Bangladesh. This segment features 15 standout youth-led ventures from across the country, giving young entrepreneurs a platform to pitch their ideas directly to top investors and decision-makers. Startup Connect 2025 is jointly organised by Startup Bangladesh Ltd, the ICT Division, and the Bangladesh Investment Development Authority (BIDA), highlighting the country's rapidly evolving startup landscape and its growing appeal to international investors. Your contribution to eradicating poverty truly inspiring: Chinese banker tells Dr Yunus  

Bangladesh Bank Governor Dr Ahsan H Mansur has called on businesses across the country to ensure proper compliance with regulatory frameworks, emphasising that the central bank will remain vigilant in monitoring adherence to financial guidelines. Dr Mansur made the remarks during a courtesy meeting with the Board of Directors of the Dhaka Chamber of Commerce & Industry (DCCI), led by its President Taskeen Ahmed, at the Bangladesh Bank headquarters on Thursday. Businesses’ Concerns During the meeting, DCCI President Taskeen Ahmed highlighted the difficulties faced by businesses, particularly in light of the recent hike in VAT and tax rates, which he said have intensified economic pressures. “The high bank interest rates are significantly increasing the cost of doing business,” he remarked. Taskeen Ahmed suggested that lowering interest rates could facilitate the flow of credit to the private sector and stimulate investment. NBR reforms possible, but can’t be done overnight: Mazid He also addressed the challenges encountered by small and medium-sized enterprises (CMSMEs), pointing out that complex documentation requirements for accessing the Credit Guarantee Scheme often leave entrepreneurs struggling to secure necessary funding. Proposals for Economic Relief In response to the current economic climate, Taskeen Ahmed proposed extending the loan classification period by at least three to six months to provide businesses with more time to adjust and improve repayment capabilities. Additionally, he called for relaxing some of the stringent policies surrounding the establishment of overseas business offices, which he believes would encourage export and investment activities. Bangladesh Bank's Response Governor Dr Mansur assured the DCCI delegation that Bangladesh Bank has been taking proactive measures to manage inflation and stabilise the market. He expressed optimism that these efforts would soon yield positive results, especially with inflation expected to decrease in the coming months. "We have directed banks to open letters of credit (LCs) without margin requirements to help stabilize the prices of essential goods, particularly ahead of Ramadan." Bangladesh Bank considering policy rate hike as living costs soar Regarding currency stability, Dr Mansur reassured the business community that there is no shortage of dollars in the market. He noted that while Bangladesh Bank does not control the exchange rate, it closely monitors the market to ensure dollar price stability. “The exchange rate is determined by the forces of supply and demand, but we are committed to ensuring the stability of the dollar in the market,” he said. Interest Rates The Governor mentioned that if inflation falls to around 7% by June-July 2025, bank interest rates could potentially decrease, benefiting businesses in the long term. In response to the DCCI President's request, Dr Mansur confirmed that Bangladesh Bank would review the possibility of extending the loan classification deadline and relaxing the conditions for setting up overseas business offices. Savings Certificate sales resume While expressing his commitment to supporting the business community, Dr Mansur urged businesses to strictly adhere to regulatory frameworks to ensure the stability and growth of the economy. “We will be strict about compliance, and businesses must adhere to regulations to maintain a healthy financial ecosystem,” he said. Senior officials from both Bangladesh Bank and DCCI, including DCCI Senior Vice President Razeev H Chowdhury and Vice President Md Salem Sulaiman, were present at the meeting.  

Bangladesh Bank (BB) Governor Dr Ahsan H Mansur on Saturday said that money laundering from the country has been halted due to the implementation of good governance in the banking sector. “Despite political unrest, remittance inflows have increased by $3 billion and exports by $2.5 billion over the last five months, marking a historic milestone in December,” said Dr Mansur while speaking at a programme titled ‘Branding Bangladesh: NBR and UN Peacekeepers Leading the Way’, held at a hotel in the capital on Saturday. BB Governor reveals laundered money figures, reaffirms efforts to recover  Besides, he said, the government is spending Tk 7,000 crore annually on a 2.5 percent incentive to encourage remittances through official banking channels. The Governor highlighted that remittance inflows through legal channels could rise further if intermediaries benefitting from the system are eliminated. “At present, expatriates are sending remittances equivalent to around Tk 4,000 crore on average each day. This figure could double if middlemen are removed and the skills of Bangladeshi workers are enhanced,” he said. Dr Mansur urged expatriates to send money directly through banking channels, cautioning that Dubai has overtaken Saudi Arabia as the leading source of remittances. “This is not a positive trend, as money from Saudi Arabia is being routed to Dubai before reaching Bangladesh. Certain institutions in Dubai are exploiting this opportunity to manipulate currency exchange rates.” In response to a question from journalists, the governor revealed that “a single group based in Chittagong has laundered $20 billion abroad. Efforts are underway to recover these funds, with foreign assistance being provided.” Former ED Ahsan Ullah joins central bank as advisor to the Governor He said discussions are going on with international agencies, including the Federal Bureau of Investigation (FBI) in the United States, to repatriate the laundered money. Foreign lawyers are also being appointed to support the process. Highlighting progress, Dr Mansur mentioned that 80 percent of the stolen reserve money has already been recovered, and legal proceedings are underway to retrieve the remaining funds. “I am confident that Bangladesh will win the case,” he said. Foreign Affairs Adviser Md Touhid Hossain also addressed the event.

Bangladesh's foreign exchange reserves are gradually increasing and stabilising, says Bangladesh Bank (BB) Governor Dr Ahsan H Mansur. “The reserves, which had been depleting by USD 1.3 billion per month under the previous government, are now seeing a more positive trend,” Governor Mansur said in an interview with UNB on Sunday. “A significant amount has already been paid for fertilisers, electricity, and obligations to Adani-Chevron,” he said. Less than a month in, new governor returns stability to forex market In the past two months alone, the central bank has successfully reduced deferred payments from USD 2.5 billion to USD 700 million by paying off USD 1.8 billion in outstanding liabilities for energy and other essential services. As of October 8, Bangladesh's foreign exchange reserves stood at USD 19.82 billion as per BPM6 calculations, while the gross reserves reached USD 24.97 billion. He said that the central bank's primary goal is to eliminate the remaining debt within the next two months, aiming for a debt-free status by November-December. “Once achieved, liquidity in the market is expected to improve.” By settling these dues, the financial pressure on the economy is anticipated to ease, allowing economic activities to accelerate. The central bank is preparing to secure an additional USD 10 billion in loans from various international institutions to bolster the economy. Bangladesh forex reserves soar to $19.53bn boosted by remittance The Governor, however, expressed concern over the country’s growing foreign debt, which has now reached USD 103 billion, with repayment pressures steadily increasing. Despite this, he urged patience, suggesting that it will take at least a year to navigate through the current debt challenges successfully.

Dr. Ahsan H. Mansur, newly appointed governor of Bangladesh Bank, has said his priority will be to check the high inflation and restore stability in the financial sector.  Expressing satisfaction over his new responsibility Dr. Mansur told UNB on Tuesday night that he will work with all stakeholders in the financial sector to bring back stability and put it on a solid foundation. On Tuesday night the interim government's law ministry hurriedly waved the age limit of 67 years for anyone to be appointed as governor of the central bank. Economist Mansur is now 72 years old. The last time the age limit provision got amended from 65 years to 67 years was in July 2020 to accommodate the reappointment of then-governor Fazle Rabbi.  Read more: Money launderers won’t be allowed to sleep in peace: New Bangladesh Bank Governor He believed that despite high inflation - it hit 11.66 in July in a 13-year high- the central bank under the previous administration did not give full attention to curb it.  Controlling inflation remains a top priority for any central bank.  However, money supply, exchange rate stability, and inflation control all depend on the decision of the governor. Besides, the standard of living, international trade, investment, and employment depend a lot on the decisions of the central bank of any country, he said. Dr. Mansur started his career as a lecturer, at the Department of Economics, Dhaka University in 1976. He left for Canada for higher studies in economics the same year. As a graduate student and research assistant, he was also offering regular economics courses at the undergraduate level at the University of Western Ontario, Canada (1978-81).  Dr. Mansur joined the International Monetary Fund under its Economist Program in 1981 and thereafter completed his PhD in Economics (on general equilibrium analysis) from the University of Western Ontario in 1982. During his long career at the IMF, he worked in Middle Eastern, Asian, African, and Central American countries. He worked in important functional departments (Fiscal Affairs and Policy Review and Development departments) and area departments (Middle East and Central Asia and Asian departments) of the IMF. Read more: Inflation hits 13-year high of 11.7% in July: BBS He also served as the IMF Senior Resident Representative to Pakistan from 1998-01 and as the Fiscal Advisor to the Minister of Finance, Government of Bangladesh (1989-91).