United News of Bangladesh

Credit card transactions by Bangladeshi nationals abroad and foreign nationals within Bangladesh witnessed a notable decline in February compared to the previous month, according to the latest report from the Bangladesh Bank. The central bank’s data shows that Bangladeshi cardholders spent Tk 377 crore abroad in February, a Tk 86 crore drop from the Tk 463 crore recorded in January. Among international destinations, the United States remained the top location for spending, accounting for Tk 54.03 crore. This was followed by Thailand (Tk 50.04 crore), Singapore (Tk 32.04 crore), and the United Kingdom (Tk 30.04 crore). Bangladesh Bank buys $60 million from banks to maintain exchange rate stability Other significant spending was recorded in Saudi Arabia, Tk 28 crore, India, Tk 25 crore, Malaysia, Tk 23 crore, and the Netherlands, Tk 17 crore, while Australia, the UAE, Ireland, and other countries accounted for the remainder. A similar downward trend was observed among foreign nationals using credit cards within Bangladesh. Spending by foreigners dropped to Tk 266.06 crore in February, down from Tk 344.04 crore in January—a Tk 78 crore decrease in a single month. US citizens were the highest spenders in Bangladesh, totaling Tk 86.09 crore. They were followed by citizens of Mozambique, Tk 35 crore, the United Kingdom, Tk 24 crore, and Australia, Tk 9.06 crore. Domestic credit card usage also saw a contraction. Transactions within the country fell by Tk 298 crore, sliding from Tk 3,720 crore in January to Tk 3,422 crore in February. Overall, the central bank report highlights a clear downward trajectory in credit card activity across all sectors during the month of February.

Bangladesh’s banking sector, which should operate as the backbone of the economy, is struggling to regain its footing due to a profound lack of good governance and deepening financial instability. According to the latest review by Bangladesh Bank, 17 banks failed to generate any net profit in 2024, while 11 banks gave up spending under Corporate Social Responsibility (CSR) altogether in 2025. Experts view these as a clear sign of the dire state of the industry, fueled by skyrocketing non-performing loans (NPLs), weak boards, and political interference. Masrur Reaz, Chairman of Policy Exchange Bangladesh and former senior economist at the World Bank, told UNB that the financial health of some banks has revealed the worsening situation of the sector. He pointed out that these banks will take several years to return to a good financial position. At the same time, the strict policy regulations and skilled management are also required for these banks. Towfiqul Islam Khan, an economist and the Additional Research Director at the Centre for Policy Dialogue (CPD), said that the scenario was a reflection of the economy of Bangladesh. The banking sector is like the blood circulation in the financial sector; while banks are in trouble, the overall economy will not be vibrant, he said. Zero CSR Spending by 11 Banks: A recent central bank report on CSR activities revealed that 11 banks made no contributions to social welfare in 2025. These institutions include: Janata Bank, Agrani Bank, BASIC Bank, Bangladesh Krishi Bank, Rajshahi Krishi Unnayan Bank, Bangladesh Commerce Bank, National Bank, Global Islami Bank, Padma Bank, Union Bank, and National Bank of Pakistan. While CSR funds are typically allocated to sectors like education, health, and climate change, the zero expenditure by these banks suggests they are too preoccupied with internal financial and administrative crises to fulfill their social obligations. Profitability Crisis: Meanwhile, the central bank's performance report for 2024 identifies 17 banks that failed to earn a net profit. The list comprises several state-owned and struggling private lenders: Janata Bank, Agrani Bank, BASIC Bank, Bangladesh Krishi Bank, Rajshahi Krishi Unnayan Bank, AB Bank, Bangladesh Commerce Bank, First Security Islami Bank, ICB Islamic Bank, IFIC Bank, National Bank, NRB Commercial Bank, Global Islami Bank, Padma Bank, Social Islami Bank, Union Bank, and National Bank of Pakistan. Analysts cite high NPLs, unearned interest income, rising operating costs, and irregularities in loan disbursement as the primary drivers of this unprofitability. Many of these banks are now facing such severe capital shortfalls that they struggle to maintain regular business operations. Interestingly, the report noted that six banks managed to contribute to CSR in 2025 despite recording no profits in 2024, likely by utilizing previous reserves—a move experts warn may challenge long-term stability. The crisis points toward systemic issues that have plagued the sector for years. The main challenges identified include: A significant portion of total loans is stuck with large borrowers who continue to enjoy new facilities without repayment. Political and influential interference in boardrooms often overrides commercial logic. Lack of profits has led to a sharp decline in Capital Adequacy Ratios (CAR). Also, reliance on manual systems and outdated software increases operational risks. Impact on the Economy: The fragility of the banking sector is casting a long shadow over the national economy. A weak banking system leads to reduced credit flow to industries, hindered investment, and slowed GDP growth. In 2025, the total CSR expenditure by the banking sector stood at Tk 345.05 crore, with Tk 98.44 crore going to education and Tk 85.64 crore to health. However, the fact that only a few strong banks carry the bulk of this expenditure highlights a massive disparity in financial health across the sector. Urgent Reforms Needed: The economists and industry insiders are calling for immediate intervention to stabilize the sector. Key recommendations include: 1. Strict Loan Recovery: Legal action against willful defaulters. 2. Board Accountability: Ensuring transparency and independence in bank management. 3. Digitalization: Modernizing risk management and banking software. 4. Policy Oversight: Strengthening CSR monitoring to ensure it remains a merit-based, profit-driven obligation. Without swift reformative steps, this deep-seated governance crisis and financial weakness pose a significant risk to the overall economic stability of Bangladesh.

After a hiatus of nearly two months, Bangladesh Bank (BB) has resumed purchasing US dollars from commercial banks through auctions to maintain stability in the foreign exchange market and keep the exchange rate under control. Bangladesh Bank spokesperson Arif Hossain Khan said the central bank bought $50 million from four commercial banks on Thursday at a cut-off rate of Tk 122.75 per dollar. This followed a purchase of $70 million at Tk 122.70 per dollar on Wednesday. With these transactions, the central bank has purchased a total of $120 million so far in April. In the current fiscal year FY2025–26, the total dollar purchase by the central bank stands at $5.61 billion. A high-ranking official of the central bank said banks were verbally instructed earlier this week to purchase remittance dollars at a maximum rate of Tk 122.90. However, by buying dollars at a slightly lower rate through the auction, the central bank sent a clear signal to the market that its goal is to stabilise the rate around Tk 122.75. The market has recently felt some pressure due to geopolitical tensions, particularly surrounding US-Iran tensions, causing some banks to acquire dollars at higher rates. However, central bank officials expect the situation to normalize soon, leading to a potential dip in the exchange rate.  

The parliament on Friday passed a bill to remove the maximum age limit of 67 years for the post of Governor of Bangladesh Bank, clearing the legal path for experienced individuals to lead the central bank regardless of their age. The Bangladesh Bank (Amendment) Bill, 2026 was passed by voice vote as Finance Minister Amir Khosru Mahmud Chowdhury moved the bill, which seeks to amend the Bangladesh Bank Order, 1972. As there were no further amendments proposed for the specific clauses, the bill was passed in its original form. Parliament ratifies 10 more ordinances The new legislation retains the provision for a four-year term for the Governor and the possibility of reappointment. However, it explicitly strikes out the condition from Clause 5 of Article 10 of the Bangladesh Bank Order, 1972, which stated that no person could remain in the post after reaching the age of 67. Under the previous law, the Governor was appointed for a four-year term and was eligible for reappointment, but mandatory retirement was fixed at 67 years. The new amendment eliminates this final restriction, allowing the government to appoint or retain a Governor based on merit and necessity rather than age. In the object of the Bill, Finance Minister Amir Khosru Mahmud Chowdhury emphasized that the Governor's role is critical for formulating and implementing monetary policy, maintaining financial stability, bank supervision, managing foreign exchange reserves, and coordinating with international financial institutions. The Minister argued that the existing age limit often acted as a barrier to appointing experienced, skilled, and wise individuals to this high-stakes position. The statement said that except for Nepal and Pakistan, many countries do not have a maximum age limit for central bank governors, making this change consistent with global practices. This is the third time in recent years the age limit has been addressed. In 2020, the limit was raised from 65 to 67 years to accommodate former Governor Fazle Kabir. The current move follows the interim government's appointment of Ahsan H. Mansur, 73, as Governor in 2024. At that time, an ordinance was issued to bypass the 67-year limit. Today’s passage of the bill in the Parliament provides the permanent legal framework for that decision and future appointments.

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 (BB) on Tuesday said depositors of the five banks merged into Sammilito Islamic Bank will receive their funds in phases under a structured repayment plan. The clarification came at a press briefing at the central bank’s Sena Kalyan Bhaban office, following a protest by depositors of the merged banks in front of the central bank headquarters.  “A specific scheme has been developed to return depositors’ money and the process is already underway in stages,” central bank’s Assistant Spokesperson Shahriar Siddique at the briefing. Under the scheme, depositors can immediately withdraw up to Tk 2 lakh and after that they will be allowed to withdraw Tk 1 lakh every three months, he said. The central bank said this arrangement will enable depositors to recover their full balances within a maximum of 21 months. For Fixed Deposit Receipts (FDR) and Deposit Pension Schemes (DPS), depositors will be able to withdraw Tk 1 lakh upon maturity. The remaining balance will be renewed under a revised schedule, allowing customers to withdraw profits at each renewal while the principal remains temporarily locked, the Assistant Spokesperson said. Bangladesh Bank has introduced special measures on humanitarian grounds It said depositors suffering from severe or life-threatening conditions such as kidney disease, will be allowed to withdraw any required amount upon submission of valid medical documents. Besides, the bank’s administrator may approve withdrawals of up to Tk 10 lakh and requests exceeding this limit will require approval from Bangladesh Bank. The central bank said efforts are ongoing to establish a permanent management structure for the new bank. Recruitment for the Managing Director is in progress, and a chairman will be appointed with government approval. The merger of five Islamic banks is currently focused on technical and operational integration, he said. Overlapping branches will be merged to reduce costs, rented head offices are being closed to centralise operations and specialists are working to unify five separate core banking systems into a single platform, he added “The government and Bangladesh Bank are committed to protecting depositors’ interests and turning the merged bank into a stable and profitable institution,” Siddique said urging customers to remain patient during the transition.  

Remittance inflows into Bangladesh have witnessed a massive surge, recording a staggering 353.3 percent growth in the first five days of April 2026. In comparison to the same period last year 2025, providing a major boost to the country’s foreign exchange reserves and macroeconomic stability. According to the latest data from Bangladesh Bank, expatriate Bangladeshis sent US$540 million between April 1 and April 5. In contrast, the remittance inflow stood at only $119 million during the corresponding period in 2025. Remittance hits record $3.75b in March The data further revealed that on April 5 alone, the country received $201 million in remittances in a single day. Analysts and central bank officials attribute this ‘unusual’ growth to several factors, including a stabilized US dollar exchange rate, the rising income of expatriates in developed economies, and a steady global economic recovery. Official figures show that the cumulative remittance inflow from July to April of the current fiscal year (FY 2025-26) has reached $26.74 billion. This marks a 22.1 percent increase from the $21,904 million recorded during the same period in the previous fiscal year. Finance Ministry and Bangladesh Bank officials expressed optimism that this positive trend in expatriate income will play a crucial role in mitigating foreign exchange shortages and maintaining a stable exchange rate.

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.

Bangladesh Bank has announced revised office and transaction hours for scheduled banks across the country in view of the ongoing fuel and electricity situation. According to a circular issued on Saturday, banks will remain open from Sunday to Thursday, with office hours from 10 am to 5 pm while transaction hours for clients will be from 10 am to 3 pm. Banking operations will continue from Sunday under the adjusted schedule until further instructions. Weekly holidays will remain unchanged on Friday and Saturday. The central bank said branches operating in port, customs and important economic zones will continue their activities as per existing special arrangements to ensure uninterrupted trade and business operations. The directive has been issued under the authority of the Bank Company Act, 1991.

Bangladesh Bank (BB) on Sunday issued a comprehensive ‘Cybersecurity Framework’ to safeguard the financial sector against increasingly sophisticated cyber threats. The new guidelines are mandatory for all scheduled banks, finance companies, Mobile Financial Service (MFS) providers, Payment Service Providers (PSP), and Payment System Operators (PSO) operating in the country. According to a circular issued by the Banking Regulation and Policy Department (BRPD), all relevant financial entities must ensure full compliance with the new framework by December 31, 2026. The central bank stated that the rapid expansion of digital platforms, online transactions, and cloud-based services has significantly increased the "attack surface" for cybercriminals. The framework aims to protect national financial stability, establish a minimum baseline for cyber resilience and governance, standardize the approach to detecting and responding to threats such as hacking, phishing, and ransomware and define clear roles and responsibilities for all relevant parties. Aligned with the international NIST standards, the framework is built around seven core functions: Preparation & Govern, Identify, Protect, Detect, Respond, Recovery, and Reporting. Under these functions, the framework mandates several critical measures, including: Mandatory CISO: Every organization must recruit a qualified Chief Information Security Officer (CISO) with industry-accepted certifications and provide them with a sufficient budget and human resources. Incident Reporting: For any critical cyber incident, organizations are now required to report to both internal and external stakeholders—including Bangladesh Bank and the BGD-CIRT—within 72 hours. Security Infrastructure: Banks must implement advanced solutions such as Security Information and Event Management (SIEM), Multi-Factor Authentication (MFA), and Web Application Firewalls (WAF). Data Protection: Strict protocols for data encryption, access control based on "least privilege," and regular audit log monitoring have been established. Oversight and Implementation The framework was developed by a technical committee headed by Debdulal Roy, Executive Director (ICT) of Bangladesh Bank, with contributions from various private and state-owned banks. Bangladesh Bank warned that these guidelines act as a "baseline" and that organizations should perform their own risk analysis to achieve higher maturity levels. The ICT Audit, Inspection, and Compliance Wing of the central bank will provide support to institutions during the implementation phase.