Banks move to equip ATMs with anti-skimming devices

Posted by BankInfo on Wed, Mar 02 2016 09:58 am

Banks have rushed to install anti-skimming devices and PIN shields at their automated teller machines to meet the central bank's deadline of March 15 for deploying such gadgets to protect their customers from fraudsters.

The banks will have to assess the effectiveness of the solutions as well.

The Bangladesh Bank directive came after four ATMs of three banks were skimmed off by local and international fraudsters between February 6 and February 12 in Dhaka.

The ATM skimming, which was unprecedented in Bangladesh, cost the banks over Tk 25 lakh and dented the confidence of ATM users.

“We have received letters from 22 banks that want to install anti-skimming devices in their ATMs,” said Kazi Saifuddin Munir, managing director of IT Consultants that owns the country's biggest payment processing consortium, Q-Cash. It has about 3,000 ATMs in its network for its 33 client banks.

Munir praised the banks' move to deploy anti-skimming devices and PIN shields as a positive development that will strengthen the security measures in ATMs.

An anti-skimming device protects a card from being skimmed off by fraudsters and the PIN shield makes it more difficult for them to capture the cardholder's PIN with the miniature camera that they install on the ATM fascia.

An average anti-skimming device costs up to Tk 25,000; the best-quality one will cost around Tk 80,000. A PIN shield costs Tk 1,000-Tk 2,000.

Presently, there are around 7,500 ATMs, of which, 3,000 already have anti-skimming devices, according to the BB.

Dutch-Bangla Bank, which has the largest network of ATMs with nearly 3,700 machines, has also advertised in the newspapers about deploying anti-skimming devices and PIN shields in all its ATMs.  But it will not be possible for the banks to install the devices in all machines by the BB-given deadline of one month.

“We have just advertised for procuring anti-skimming devices and PIN shields. It will take time to finish the installation,” said Abul Kashem Mohammad Shirin, deputy managing director of Dutch-Bangla Bank.

Eastern Bank Ltd, which was one of the three victim banks of the recent ATM frauds, also took measures to install such devices.

“Anti-skimming devices were supposed to be in-built in our ATMs as per work order given to the vendor. We have asked the vendor to reply in this regard,” said Ziaul Karim, head of communications at EBL.

Karim said his bank has already moved to deploy PIN shields in all ATMs by the BB-given time. However, bankers said it is clear that the magnetic stripe on payment cards is the underlying cause of the persistent threat to skimming and data compromise at the ATMs.

They said the payment card should be EMV-equipped to reduce the risk of frauds.

On the time extension, Shubhankar Saha, executive director and spokesman of the BB, said if a bank can legitimise that it needs more time, the central bank will consider it.

According to the ATM Security Association, a global network of manufacturers, suppliers and services providers, the global cost of ATM skimming is estimated to be over $2 billion annually.

It said skimming represents 98 percent of all ATM fraud losses.

Skimming losses in Europe rose 14 percent to $343.5 million in 2014 -- the highest since 2009 -- despite a 3 percent decrease in the actual number of skimming incidents.

The average cost of a skimming incident rose 18 percent in 2014 from the previous year to approximately $61,000.

With all ATMs in Europe now being EMV compliant, organised crime has shifted outside its borders.

The association in a paper said card data is skimmed in one country and then used for fraudulent ATM withdrawals in another.

It found 87 percent of all losses in Europe in 2014 were generated from cross-border fraud. The top cross-border locations for European card losses are the US, Indonesia and Philippines.

News:The Daily Star/2-Mar-2016



Banks lending rate drops to 11.05% in January

Posted by BankInfo on Tue, Mar 01 2016 12:42 pm

‘The downward trend of lending rate had played a role in boosting credit growth to 14.19% in December last year, which was high in three years’

The lending rate in Bangladesh’s banking sector dropped to 11.05% in January this year from 12.32% one year ago, said Bangladesh Bank data released recently.

The interest rate on deposit also fell to 6.21% from 7.26% during the same period.

During the period, the lending rate plunged by 1.27 percentage points compared to 1.05 percentage points drop of deposit rate.

A senior executive of a private bank in the country said the  deposit rate fall was slower than that lending rate as the new banks were still struggling to attract deposits. 

However, the banking sector moved to reduce lending rate gradually to stimulate credit demand amid economic recovery after a long stagnation, added the executive asking not to be named.

Bangladesh Bank data showed that the gap between lending and deposit rates, known as spread, came down to the “expected level of 4.84%” in January this year from 5.05% a year earlier.  

The private bank executive said the downward trend of lending rate had played a role in boosting credit growth to 14.19% in December last year, which was high in three years.

Alhough the average lending rate has come down to 11.05%,  the new banks are still lending at high interest rates like 13%-14% in January 2016. The lending rate of nine new banks were between 14% and 15% in January last year. 

Of the new banks, Farmers Bank lent at the highest 14.54% rate while its interest rate against deposit was 9.56% in January this year, and Midland Bank, another new bank, offered lowest lending rate of 12.18% against deposit rate of 7.56%. 

However, the weighted average lending rate of state-owned banks fell to 10.2% in January this year from 11.28% one year ago. The deposit rate dropped to 6.42% from 7.19% during the same period. 

Sonali Bank, the largest state-owned commercial bank,  saw 2.66% credit growth year-on-year in December last year. But the bank experienced negative credit growth of 1.95% one year ago.

The lending rate of private commercial banks dropped to 11.45% in January from 12.82% a year earlier while the deposit rate also fell to 6.3% from 7.52%. 

News:Dhaka Tribune/1-Mar-2016


ADB to give $5b for road dev, metro-rail

Posted by BankInfo on Tue, Mar 01 2016 12:35 pm

The Asian Development Bank (ADB) is considering funding over US$ 5.0 billion for the country's road and metro-rail development in the next five years. Of the total fund, about $3.0 billion is likely to be spent on three projects in the road sector for increasing regional connectivity, and over $2.0 billion for setting up metro-rail in the city. An ADB mission shared these in its action plan in a meeting with Road Transport and Highways Division officials on Monday. The meeting was held to review the ADB-funded transport sector portfolio performance. Road Division secretary M A N Siddique chaired the meeting, attended by the six-member ADB mission. Hiroshi Yamaguchi, transport and communication director, South Asia Department, led the ADB team. The meeting observed satisfactory progress in all ongoing projects and those in the pipeline. These projects include additional funding for road development under South Asian Sub Regional Economic Cooperation (SASEC) project II and III, and Dhaka-Chittagong expressway. Each of these projects will get at least $1.0 billion ADB fund. Setting up multimodal transport hub near Hazrat Shahjalal International Airport is also on the cards. Sources said ADB has already taken a technical assistance project to fund metro-rail in the city. However, the secretary informed the mission that it would take time to approve the metro-rail project, as its revised strategic transport plan is not yet approved. Under SASEC II, Roads and Highways Department (RHD) has already made progress in the four-lane project from Tangail to Elenga. The development project proposal for the highway from Hatikumrul to Rangpur was also under process of getting approval. ADB is likely to fund the project under SASEC III. The mission informed the officials that a technical assistance loan is in the pipeline for preparing design and support tendering process in 2017, $1.0 billion for the first phase investment during 2018-19, and $1.0 billion for second phase. The mission also guided the government to start land acquisition and procurement for SASEC road II project and ensure high protection readiness for the pipeline projects. The Road Division secretary said the government has requested the mission to include other part of the SASEC road connectivity after Rangpur and Dhaka-Sylhet four-lane project, as good progress has been made in both cases. He said the meeting with the ADB team was a regular meeting. The government will request the development bank to assist those projects, which it will find important for the country.

News:Financial Express/1-Mar-2015

BB Governor opens new NBFI

Posted by BankInfo on Tue, Mar 01 2016 12:27 pm


Bangladesh Bank Governor Dr Atiur Rahman Monday put thrust on inclusive economic growth through creating a dynamic economic platform. The BB governor was addressing the launching ceremony of a new non-banking financial institution, CAPM Venture Capital and Finance Ltd. It is the 33rd NBFI in the country. Dr Atiur Rahman expressed his optimism that the new NBFI with a Tk 1.05 billion paid-up capital will play a significant role to mobilize fund for industrialization. He said Bangladesh will reach the 8.0 per cent GDP growth trajectory with the active participation of all new and old Financial Institutions (FIs). BB deputy governor SK Sur Chowdhury, chairman of Bangladesh Leasing and Finance Companies Association Mafizuddin and chairman of CAPM CAPM Venture Capital and Finance Ltd., Mahmud Hossain were also present on the occasion. The company officials said the new company will facilitate creating new entrepreneurship through providing some unique services, according to a statement.

News:Financial Express/1-Mar-2016

Pubali Bank holds first managers' confce in Barisal

Posted by BankInfo on Tue, Mar 01 2016 11:54 am

Syed Moazzem Hussain, Director, Board of Directors of Pubali Bank Ltd, graces the \"1st Managers\' Conference-2016\' of Barisal Region\" as chief guest at a local hotel recently. Md Abdul Halim Chowdhury, Managing Director of the Bank was present.

Economic Reporter :The first managers' conference-2016 participated by all managers of Barisal region of Pubali Bank Limited (PBL) was held recently to motivate them to increase bank's business. Syed Moazzem Hussain, Director, Board of Directors of PBL graced the conference as the chief guest while PBL Managing Director M Abdul Halim Chowdhury was present as guest of honour, said a press release here Monday.Mohammad Ali, Deputy Managing Director and Chief Technical Officer of the bank, was present as special guest with Deputy General Manager (DGM) of the bank M Zahidur Rahaman in the chair. Syed Moazzem Hussain emphasized on expansion of foreign remittance business through better customer and modern banking service.

News:New Nation/1-Mar-2016
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