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.  

Islami Bank Bangladesh Limited (IBBL) Rangpur organised the webinar "Compliance of Shari'ah in Banking Operations" Saturday. Mohammed Nasir Uddin, director of the bank, spoke at the webinar as chief guest. Muhammad Qaisar Ali, additional managing director, addressed the programme as a special guest. Read: IBBL board of directors' meeting held Hasan Moinuddin, a member of the Shariah supervisory committee of the bank, was the key speaker at the webinar. Md Shamsuddoha, head of the Shariah secretariat, also spoke. IBBL is a joint venture public limited company engaged in commercial banking business based on Islamic Shariah. It is listed on the Dhaka Stock Exchange and Chittagong Stock Exchange.

Bangladesh Bank governor Abdur Rouf Talukder said that banks must comply with rules in debt management and other activities assuring that the central bank will ensure good governance in the banking sector. The governor was addressing the media at Jahangir Alam Conference Hall at Bangladesh Bank Bhaban on Thursday, his second meeting with journalists after assuming office on July 12. The central bank, meanwhile, identified the weak banks and it plans to talk to them one-to-one basis. These banks will get a three-year business plan for improvement under direct observation of Bangladesh Bank, he said. Failure in one bank would affect other banks and financial institutions. So, it is better to improve banks by good governance, he pointed out. The central bank has already assured banks’ managing directors (MDs) and chief executive officers (CEOs) of support regarding good governance, he said. Deputy Governors Ahmed Jamal, Kazi Sayedur Rahman, A.K.M Sajedur Rahman Khan, Abu Farah Md. Nasser, BFIU chief Masud Biswas, executive director (ED) and chief economist Habibur Rahman, ED and spokesperson Md Serajul Islam, and senior officials were present at the event. Rouf said the central bank has taken essential policy measures for a stable exchange rate, increasing the supply of dollars, curtailing unnecessary luxury imports and increasing vigil in the exchange market. But, it will take time to get results, he said. “We should be patient.” Ruling out raising the lending interest rate, the governor said that the BB prefers demand cut, imposing higher taxes to curb the inflation rate in the domestic economy due to external effects. Read: FY23: Bangladesh Bank raises agro credit target to Tk30,911 crore He also hinted at strengthening the bond market along with enhancing the equity supply in the stock markets. Reply to a query Rouf said banks have to ensure compliance in each sector and serve every citizen, influential or ordinary. Regarding the current account deficit, the governor said, “Our economy is heavily import-oriented. Fuel oil, gas, edible oil, food and even over 60 per cent raw materials for export-oriented industries are imported. This created an imbalance or deficit.”   The BB’s chief economist Habibur Rahman gave a presentation on different policy measures that have been taken by the central bank recently to stablise currency and money flow. The BB sold USD $ 7.4 billion in the FY2021-22 to keep foreign exchange supply smooth. The BB bought $7.7 billion from banks in FY 21 due to keeping a stable forex exchange rate.  The licenses of 10 exchange houses have been cancelled and notices were sent to another 45 houses to explain their transaction report and alleged violation of  money exchange rules. The BB has increased the interest rate on non-resident foreign currency deposits (NFCD) and benchmark (Eurocurrency deposit rate) by an additional 2.25 and 3.25 per cent to attract more foreign currency deposits.

Islami Bank Bangladesh Limited (IBBL) Dhaka South Zone organised the webinar "Compliance of Shari'ah in Banking Operations" recently. Major General (retd) Abdul Matin, chairman of Risk Management Committee of the bank, addressed the webinar as chief guest and Mohammed Monirul Moula, managing director and CEO, as special guest. Read:Bangladesh Bank, IBBL sign automated challan system agreement Mufti Mohammad Muhibbullahil Baqee, member of the IBBL Shari'ah Supervisory Committee, addressed the webinar as chief discussant. Abu Sayed Md Idris, head of Dhaka South Zone, presided over the programme while Md Shamsuddoha, executive vice-president, addressed the programme, according to a press release.