United News of Bangladesh

The Dhaka Chamber of Commerce and Industry (DCCI) has expressed its support for Bangladesh Bank’s (BB’s) steps against bank looters and money launderers. A delegation led by the president of Dhaka Chamber of Commerce & Industry (DCCI) Ashraf Ahmed called on Bangladesh Bank Governor Dr. Ahsan H. Mansur at the central bank headquarters on Tuesday. The DCCI President said this to the reporters after meeting with the governor. He said that raising interest rates to control inflation works for a certain period. “We want inflation to come down under control. When inflation increases, the cost of traders also increases. Because then we have to increase the salary of our workers. We all have to work hard to reduce inflation,” he pointed out. Ashraf said the BB has several schemes for financing the SME sector. If these schemes can be accelerated, it will be good for SME entrepreneurs. Besides, a discussion was held with the governor on how to simplify the process of foreign loans and reduce pressure on bank loans. The reason behind the increase in lending interest rates are banking system failure. Dishonest traders have stolen millions of funds from banks. As a result, the cost of the bank has increased, and at the same time the interest rate has also increased, he pointed out. In response to a question about taking action against those who have looted banks and money laundering, he said, “We ordinary businessmen have not looted any bank. If someone embezzles money from the bank then common borrowers like us have to pay for it.”   He also said that if the amount of bad loans can be reduced, the interest rate of bank loans will be reduced. We also agree with what Bangladesh Bank is doing to catch the bank robbers.  

 Finance and Commerce Adviser Dr Salehuddin Ahmed on Tuesday urged the business community to do their business transparently, honestly and sincerely. “Please do business transparently and honestly and don’t make any transaction under the table,” he told reporters after a group of the country’s leading businessmen met him at his ERD office this afternoon. Responding to the businesses’ concern over the law and order situation, the Adviser assured them of providing necessary security alongside taking prompt steps of issuing LCs as well as ensuring that there is no congestion in the airports and seaports for loading and unloading of goods. Asked about the demand from the RMG sector to provide soft loans to deal with the current situation, Dr Salehuddin suggested they hold a meeting with the Bangladesh Bank Governor in this regard. “trade and commerce are a very important part of the country’s economy as those generate employment and expedite growth,” he said. Salehuddin said that the demands raised by the business community are not huge and efforts would be made to resolve those although the previous government ignored many of their demands. He had also assured some foreign buyers who were present in the meeting that their investment opportunities would be good here in Bangladesh side by side the law and order situation and banking facilities remained favourable for them. “We’ve assured them (foreign buyers, investors) and I think they are assured. They have told me that there has been a new beginning in Bangladesh,” he added. Referring to Bangladesh’s trade and economic partnership with the UK, he said that the UK is a very large market for Bangladesh’s RMG products while they are willing to expand it. Besides, he also urged them to diversify the items that the UK imports from Bangladesh other than the RMG.Emerging from the meeting, former FBCCI president AK Azad said that they have requested the Adviser for taking steps to delay the process for availing LDC Graduation facilities by three more years to 2029 instead of the 2026 period. Besides, he said the business leaders also demanded for bringing necessary reforms in the trade bodies and associations as early as possible and thus giving elections to those to elect the new leadership.Azad, also a renowned industrialist and businessman, said that they have raised the issue of current law and order situation before the Finance Adviser side by side easing up congestion at the airports and seaports to ensure smooth shipment of goods. He said if these negative sides are not addressed, then they might have to think about shifting their businesses to other countries. So, the main focus of the business community was to improve the law and order situation, sample clearance and easing congestion at the Chattogram Port. Referring to the probable withdrawal of EDF facility from the central bank and cash incentives as well as scarcity of US dollars, Azad said if these things are not addressed, then there would be a negative impact on the country’s operations.In this regard, the Adviser suggested the business community sit with the central bank Governor. Azad said the Finance Adviser also suggested they coordinate with the law enforcement agencies like police, RAB apart from Bangladesh Army to improve the law and order situation. The former FBCCI president also raised the issue of some incidents of extortions in some places in the industrial arena which the Adviser has given assurance of giving proper attention.  

  Speakers at a seminar highlighted the need for legal reforms related to the banking sector, while insisting that political interference should be eradicated to run this vital sector smoothly. They said this while speaking at a seminar titled ‘Reforming the banking sector and what should be reformed’, held at the Jatiya Press Club on Monday. A group of bankers under the banner Conscious Bankers’ Society organised the seminar. Professor Abu Ahmed of DU was the chief guest at the event. He said that the banking sector should be kept free from the influence of individuals and various business groups. A panel of competent and honest people should be formed by Bangladesh Bank (BB) for the appointment of directors of various banks. Weighing in on the situation that has arisen around a dozen Islamic banks that the S Alam Group had taken control of before they ended up in the scanner of law enforcers following the political changeover on August 5th, Prof. Ahmed emphasized that these banks have to be returned to their original investors, and side by side an expert panel on Shariah-based banking should be appointed for these banks. "The customers’ trust in Islamic banks would be restrained when the ownership of the banks are returned to those who were the founders of those banks,” he pointed out. Prof Ahmed said the banking commission should be constituted with honest and competent people. The Banking Commission shall determine the actual status of defaulted loans through an independent auditor. “Crooked policymakers and money launderers responsible for defaulting loans should be brought to justice. Banks must be freed from family and government control,” he said. A dedicated bench of the High Court should be constituted for expeditious disposal of cases related to banking irregularities, he also pointed out. Professor Dr. Mizanur Rahman of DU gave a presentation at the seminar. Former senior secretary Yunusur Rahman, former secretary Dr. M. Aslam Alam, former executive director of Bangladesh Bank Abdul Awal Sarkar, colonel (retd) engineer M. Alauddin PSC, professor of the law department of DU Naqib Nasrullah, Former FBCCI Vice President Abul Kasem Haider, distinguished banker Dr. M Kamal Uddin Jasim, among others, spoke at the event. The speakers emphasized that a director of a bank cannot take a loan from his own bank and at the same time cannot be a director of another bank. In appointing a director, his past work record and experience should be given importance. The board of directors should have one-third independent directors, they asserted.  

The Bangladesh Financial Intelligence Unit (BFIU) has sought the bank account details of 13 people, including the seven brothers of S Alam Group’s Saiful Alam. The BFIU sent to all banks in this regard on Monday. The letter asked to provide all the information including the name of parents, national identity number, and all kinds of account transactions. The list also includes Saiful Alam's wife Farzana Parveen and their two sons Ahsanul Alam and Ashraful Alam Saiful Alam's brothers named in the letter are Mohammad Abdullah Hasan, Osman Gani, Abdus Samad, Rashedul Alam, Sahidul Alam, and Morshedul Alam. The others are Hamidur Rahman's son Miskat Ahmed, Abul Kashem's daughter Farzana Begum, and Ferdousul Kabir's daughter Shahana Ferdous are also on the list. Although they are connected to the S Alam family, the specific nature of their relationship could not be confirmed.

Khandakar Rashed Maksud, the new chairman of Bangladesh Securities and Exchange Commission (BSEC), said that he wants to take the capital market to a place of trust. He also said that he will work for the next four years to establish complete transparency and accountability in the market. The BSEC chairman wants the cooperation of the Capital Market Journalists Forum (CMGF) for this. BSC chairman Khandkar Rashed said this in a courtesy meeting with the Capital Market Journalists Forum (CMJF) on Sunday (August 25). CMJF president Golam Samdani and general secretary Abu Ali along with members of the organization's executive committee were present at that time. In addition to the BSEC chairman, Commissioner Mohsin Chowdhury and Dr. ATM Tarikuzzaman were present.  

In a move to protect depositors’ interests, Bangladesh Bank has dissolved the board of directors of Social Islami Bank Limited (SIBL) and appointed a new five-member board to oversee the bank’s operations. This action marks the third time that S Alam Group, which previously held control of SIBL, has seen its board replaced by the central bank. The newly appointed board includes both shareholder representatives and independent directors, reflecting a push for improved governance. The members of the new board are: Major (retd) Dr. Rezaul Haque, representing shareholders; independent directors Maksuda Begum, former Executive Director of Bangladesh Bank; Dr. M. Sadikul Islam, Professor at the Department of Finance at Dhaka University; Md. Murshed Alam Khondker, former Deputy Managing Director of Rupali Bank; and Anowar Hossain FCA, a Chartered Accountant. The Banking Regulation and Policy Department (BRPD) of the central bank issued a notification on Sunday that formally dissolved the S Alam-nominated board and appointed the new board members. The notice was sent to SIBL's Managing Director for immediate implementation. In its notification, Bangladesh Bank stated that the decision was made to safeguard the interests of depositors and to ensure good governance within the bank.

Islamic banks must be operated by the people who founded those banks based on Shariah to serve financial inclusion for the ordinary people of the country, according to a prominent economist. Professor Abu Ahmed said this while speaking as the chief guest at a 'customer rally' organized to protect Sharia-based Islamic banking, held in a hotel at Motijheel, Dhaka on Saturday. He said, “Islamic banks will be run well when they would be operated fully based on Shariah. On this aim these banks were established, but some people snatched it at gunpoint for looting money from these banks.” Economist Abu Ahmed said those who established Islami banks did not expect profit. Because of this, the assets of the bank were increased. And this increase in wealth has become the death knell for the bank due to some greedy people in the society. “S Alam Groups looted more than Tk75,000 crore from Islami Bank. Those of us who have done business honestly are now unable to open LCs. Not getting the US dollars as needed. The business has been greatly affected by this crisis. Businessmen have called for a 10-year rescheduling of the loans of loss-making traders,” he pointed out. Former Chairman of NBR Mohammad Abdul Mazid said, “The SME sector and economy has been severely damaged through the forcible occupation of Islami Bank and the loss of a large amount of money.” He said that customers are the greatest strength of the bank; according to their demand, S Alam Group, who embezzled the money of this bank, should be brought to justice. Islami Bank Bangladesh alone received around 40 percent remittance of the country, which was destroyed by the illegal occupation of the bank by S Alam Group, he opined. Abdul Haque, the former director of FBCCI, said that the investigation will reveal how the Islamic banks were mishandled by the wrong people. “I tried to understand the Bangladesh Bank governor and finance minister of that time. But then it was not possible to understand. Everyone knows what happened after that,” he said. “But soon the new governor dissolved the board of Islami Bank. At the same time, a new board has been formed. The Islami Banks management should hand over the people who operated before occupied by S Alam Groups,” said Abdul Haque. FBCCI former vice-president Abul Kashem Haider said that S Alam had illegally employed many people with the pay-scale benefits of Islami Bank. Their appointment should be canceled as soon as possible. “We cannot open LCs with Islami Bank due to a shortage of US dollars, the bank cannot sanction loans. But everything is going well for S Alam as they looted dollars from the bank,” he pointed out. 

Abdul Awal Mintoo has been elected chairman of the board of directors of National Bank, and Moazzam Hossain was elected the vice chairman on Thursday. The decision was taken at the 505th meeting of the Board of Directors of the bank on Thursday, according to a press release. This follows the dissolution of the previous Board of Directors by Bangladesh Bank on August 20, 2024, and the formation of a new board under the “Bank-Company Act, 1991 (Amended up to 2023),” it said. Abdul Awal Mintoo is an industrialist and business leader in Bangladesh. He is the former president of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI). Additionally, he serves as the Chairman of several companies, including Lal Teer Seed Limited, North South Seed Limited, and Pragati Life Insurance Limited. Mintoo also acts as the adviser to several organizations, such as Heidelberg Cement Bangladesh Limited, Bangladesh Petrochemical Company Limited, Multimode Textile Mills Limited, and Multisourcing Limited. Moazzam Hossain is one of the sponsor directors and former chairman of National Bank Limited. Hossain is the Chairman of Hosaf Group of Companies. He is also the former chairman of Pragati Insurance Company Limited, President of Bangladesh Energy Companies Association, Vice President of BGMEA and Chairman of Presidency University.

Improved connectivity could facilitate trade, investment, boost regional tourism, and create jobs, contributing significantly to the economic growth of the region, according to the International Chamber of Commerce-Bangladesh (ICCB). The ICCB highlighted that Bangladesh's strategic location positions it as a potential key transit route for trade between northeast India and the rest of India. Additionally, it could provide enhanced port access for Bhutan and Nepal. The ICCB cited an estimate from CUTS International, suggesting that if regional integration occurs, the combined GDP of the region could exceed $8.3 trillion by 2035. The BBIN (Bangladesh, Bhutan, India, and Nepal) initiative, launched in 2015, aims to address the logistical and economic challenges that have historically impeded South Asia's development. A central goal of the initiative is to enhance economic collaboration by streamlining the cross-border flow of goods and services, which can lower transportation costs and reduce transit times. This is particularly crucial for landlocked nations like Bhutan and Nepal, which rely on neighboring countries for access to global markets. According to a 2021 World Bank report, regional trade could increase India's national income by up to 7.6% and Bangladesh's by more than 16%, contributing to widespread prosperity for nearly a fifth of the world's population. While Bangladesh, India, and Nepal have ratified the 2015 Agreement, Bhutan has yet to do so, primarily due to environmental concerns and infrastructure issues. However, Bhutan's recent participation as an observer at meetings suggests potential interest in rejoining the initiative. A key element of the BBIN initiative is the BBIN Motor Vehicles Agreement (MVA), signed in 2015, designed to facilitate smooth cross-border vehicle movement and eliminate major trade barriers, such as complex border checks and inconsistent customs procedures. By simplifying these processes, the BBIN agreement can expand market access, diversify trade, reduce costs, and enhance competitiveness. The TIR Convention (1975), the only global transit system, simplifies and secures international goods transport by guaranteeing customs duties and taxes. With 76 contracting parties, including China, India, and Pakistan, it provides a reliable method for cross-border trade while safeguarding countries' revenues. Bangladesh plays a pivotal role in initiatives like the BBIN MVA, BCIM Corridor, and BIMSTEC, aimed at expanding market access and promoting economic growth. The TIR system will further bolster regional integration and enhance Bangladesh’s access to global markets. Despite its geographical advantages, the BBIN sub-region remains one of the least integrated areas globally. Trade between Bangladesh and India, the region’s largest economies, is minimal, representing just 1% of Indian trade and 10% of Bangladeshi trade. In contrast, interregional trade in East Africa and sub-Saharan regions accounts for 50% and 22% of total trade, respectively, according to CUTS International. The BBIN sub-region faces high trade costs due to inadequate infrastructure and logistics. Analyzing GDP and trade from 2010 to 2019, CUTS found a positive correlation between the two. Interregional trade grew from $6 billion in 2010, with a GDP of $1.7 trillion, to $16 billion in 2019, with a GDP of nearly $3.2 trillion, making the BBIN one of the fastest-growing regions globally. As of August 2020, the Asian Development Bank (ADB) had invested over $15 billion through the SASEC program in transport, energy, trade, economic corridors, and ICT to enhance connectivity. Given the substantial investments in infrastructure, the ICCB urged all countries to take decisive action to implement the BBIN and MVA Agreements. It also recommended that Bangladesh, Bhutan, and Nepal join the TIR Convention to improve port access for landlocked Nepal and Bhutan and facilitate cross-border vehicle movement.

In response to the ongoing sudden flood crisis, Grameenphone, has taken immediate initiative to support the flood-affected people. Grameenphone, in collaboration with the Bangladesh Red Crescent Society (BDRCS), will distribute food relief packs to 10,000 families in the flood affected areas. Additionally, five water treatment plants and five mobile medical teams will be deployed based on the onground situation to ensure access to clean drinking water and essential healthcare services, according to a media statement. Farhana Islam, Head of ESG of Grameenphone, said, “At Grameenphone, we believe in standing by our communities during such challenging times. Considering the emergency, we promptly acted on this. Besides the initiatives taken by our company, we have also launched an employee donation initiative, where our employees can choose to donate voluntarily.” Professor Dr. M U Kabir Chowdhury, Chairman, Bangladesh Red Crescent Society (BDRCS), said, “The flooding has caused a severe crisis in some parts of the country. Our collaboration with Grameenphone is crucial in delivering timely relief and support to those most affected by this catastrophe, ensuring access to essential resources, medical facilities, and aid distribution.” Grameenphone also provided free 10 minutes and 500 MB of data with 3-days validity to help maintain emergency communication with everyone in flood-affected areas of Feni, Cumilla, Noakhali,Moulvibazar, Khagrachhari, Habiganj, Chandpur, Lakshmipur, Rangamati, Brahmanbaria and Chattogram. Customers can avail of the free minutes and internet by dialing *121*5050#, which will be valid for three days. In addition, people can also charge their mobile phones at the nearest active Grameenphone sites of the affected areas, read the release.