Directors of Bangladesh Indenting Agents' Association led by its vice-president AKM Azad, distribute relief goods to the flood-affected victims at Panchlaish in Chittagong.

The Hongkong and Shanghai Banking Cor-poration (HSBC) Limi-ted in corporation with WaterAid, Earthwatch and World Wildlife Fund (WWF) launched "HSBC Water Programme" for ensuring water supply.

Dr Md Khairul Islam, Country Representative of WaterAid in Bangladesh and Andrew Tilke, CEO of HSBC Bangladesh jointly announced the programme in Dhaka Wednesday.

The Daily Sun/Bangladesh/ 12th July 2012

Salman F Rahman, Chairman of IFIC Bank, presides over the Bank's 35th AGM at the Bashundhara Convention Centre in Dhaka Wednesday.

IFIC Bank Limited approved 25 percent stock and 5 percent cash dividends for its shareholder for the year 2011.

The approval came at the 35th Annual General Meeting (AGM) of the Bank held at the Bashundhara Convention Centre in Dhaka Wednesday, said a press release.

Salman F Rahman, Chairman of the Bank, presided over the meeting.

The Daily Sun/Bangladesh/ 12th July 2012

WASHINGTON: Cash remittances sent home by migrants, a major part of developing world revenue, have grown faster than expected despite the world financial crisis, the World Bank said Tuesday.

In an update to its annual report on remittance flows, the development lender said recorded transfers increased by 12.1 per cent last year to $372 billion and are expected to hit $467 billion by 2014.

The report said the growth of remittances had helped developing countries weather the global financial storm but warned that several factors could combine to slow the growth in such transfers in future years.

"Persistent unemployment in Europe and the US is affecting employment prospects of existing migrants and hardening political attitudes toward new immigration," the report said.

"There are risks that if the European crisis deepens, immigration controls in these countries could become even tighter. Volatile exchange rates and uncertainty about the direction of oil prices also present further risks."

The countries receiving the largest sums in remittances from migrants are the developing world's giants India, China and Mexico, but those most reliant on them are more marginal economies.

The Daily Sun/Bangladesh/ 12th July 2012

The Bangladesh bank (BB) Wednesday annulled the authority of branch offices of different banks on payment of local bills under various L/Cs (Letters of Credit).

From now on, the branch office management must obtain prior approval of the respective head offices in case of acceptance of import LCs, which linked to payment of bills through both local and foreign currencies, according to the circular.

The central bank authority said it has found in recent investigations that importers are involved in mobilising funds (cash) from banks under the provision of ‘Accommodation Bill’ by opening LCs though there are no real business transactions.

“As a result, banks are losing their liquidity strengths, ultimately posing threat to banks’ cash base,” reads the BB circular.

The Daily Sun/Bangladesh/ 12th July 2012

The central bank yesterday warned banks against purchases of fake trade bills, a phenomenon that threatens to undermine the banking system.

The warning comes in response to the precarious financial health of some banks, due to purchases of fake bills which have drained crores of taka out of them.

In a notice issued yesterday, Bangladesh Bank has forbidden decisions at branch level on purchases of bills -- in local or foreign currency -- until further notice.

The branches will have to take written permission from the head office to do such transactions, the regulator said.

The accommodation bills of letters of credit (LC), in any currency, must not be honoured without verification of the items, the central bank said.

Banks usually open LCs and purchase or discount or negotiate bills under LCs in genuine commercial and trade transactions of their borrowers. The problem arises, when trade transactions between two persons are unreal.

The central bank said it has detected an increasing tendency to cash in LCs without any real trade taking place.

A senior official of a commercial bank said the fraud happens in two ways: firstly, influential businessmen exercise their influence to take out money against the LCs, and secondly, a section of bank officials assist the businessmen to do so.

A top central bank official said it occurs frequently. "We are taking measures to stop this malpractice," he said.

"We have sought information from the banks. We will take necessary steps after we receive all information."

In May, Bangladesh Bank retrieved Tk 523 crore from four local banks on behalf of Sonali Bank after non-payment for a transaction of Beximco Group.

Two sister concerns of Beximco Group -- Beximco Ltd and Bextex -- transacted goods between themselves via LCs in takas.

Bextex, which was the seller, obtained an LC from Sonali Bank for the transaction, while the buyer Beximco Ltd committed to pay via four banks: Janata Bank, Agrani Bank, Rupali Bank and Exim Bank.

As it turns out, Beximco Ltd did not pay the four banks, and they, in turn, did not pay Sonali Bank.

Also in May, Sonali Bank relieved three of its senior officials of their duties for lending Tk 2,638 crore to a little-known Hallmark Group in a similar case.

The Daily Star/Bangladesh/ 12th July 2012