The country's foreign currency reserves yesterday crossed $11 billion thanks to slowing imports and steady remittance growth, officials said.

The foreign currency reserves went down below $11 billion last week when the country paid $70 million to Asian Clearing Union as debt servicing.

A central bank official said the reserves stood at $11.1 billion now and the banking regulator hopes to cross $12 billion in the next two to three months.

The steady flow of remittance and declining imports contributed to the rise in reserves.

Non-resident Bang-ladeshis send $1.167 billion in remittance in August, up by 6 percent over the same month last year.

This is the ninth consecutive month that Bangladesh has received over one billion dollar in remittance.

The remittance in the first two months of 2012-13 rose by 11.9 percent over the same period a year ago.

News: The Daily Star/Bangladesh/13-Sep-12

Private bankers want Bangladesh Bank to intervene in clearing the payments made to controversial Hall-Mark Group against the bills that were given acceptance by the state-owned Sonali Bank.

Association of Bankers Bangladesh (ABB) at a meeting yesterday decided to take the issue to the regulator after Sonali declined to settle those payments during the last 4-5 months.

“If Sonali Bank doesn't pay other banks, it will affect the entire system. Other banks' trust on Sonali will go down,” said a top office bearer of the ABB, a forum of chief executive officers of banks.

Hall-Mark Group swindled more than Tk 2,600 crore by selling inland letter of credit accepted by Sonali Bank's Ruposhi Bangla Hotel branch to other banks, mostly the private ones. The bankers said they bought those bills considering Sonali's acceptance.

The other issues the ABB will place before the governor at today's meeting of the bankers include the implementation of the new loan rules relating to rescheduling, provisioning and classification.

The bankers need more time to implement the new rules as those were imposed in the middle of the year and the banks set their business strategies at the beginning of the year.

“We'll request the governor to extend time for implementing the new rules on loan rescheduling and provisioning,” said a chief executive of a private bank.

According to the new rules that became effective from July 1, an ongoing loan operation will be classified in the event of non-repayment of any instalment within three months instead of the six-month timeframe used before.

The base for provisioning has been set at a minimum level of 20 percent of the outstanding balance of the credits, while strictly limiting the rescheduling facility of any default loan up to three times.

“We'll request the central bank to reduce the base for provisioning at 15 percent instead of 20 percent,” said the ABB office bearer. He said banks take mortgage for all loans, so there is no reason why the provisioning would be so high.

According to the new rules, the non-repayment period against a term-loan for more than two months will be treated as a "specially mentioned account" and the non-repayment period between three and six months will be classified as substandard. If the non-repayment period is more than six months, it will be treated as default loan.

News: The Daily Star/Bangladesh/13-Sep-12

 Bangladesh Bank (BB) has introduced ‘Web-based Agriculture Credit-MIS’ software to facilitate banks in carrying out qualitative and quantitative performance monitoring of disbursement of farm credit.

BB Governor Dr Atiur Rahman inaugurated the ‘MIS’ at a programme held at the central bank’s conference room Tuesday.

“This software will help banks to upload information. A user- friendly process has been followed in the system that will help furnish information timely and correctly and it will also help reduce waste of paper,” said BB governor at the programme.

Deputy Governors SK Sur Chowdhury and Naznin Sultana, Executive Director Abdul Hamid and Nirmal Chandra Bakth, General Manager of the Governor Secretariat AFM Asaduzzaman and General Manager of Agricultural Credit and Financial Service Department Ashok Kumar Dey were present on the occasion.

News: The Daily Sun/Bangladesh/12-Sep-12

 Bangladesh Bank (BB) has initiated a process to build an IT-based monitoring platform to ensure foolproof surveillance on baking sector.

The process has been expedited against the backdrop of the Hallmark credit scam that makes many skeptical about the current supervision on banks by regulator to ensure discipline in the financial sector.

“The central bank has already sought assistance from the World Bank (WB) and the International Monetary Fund (IMF) to appoint a consultant to establish the platform,” BB’s general manage for Department of Off-Site Supervision Rabiul Hassan told BSS.

He said the BB sought financial assistance from these two organizations to pay the consultant salary and other allowances.

“We will start organizing the platform immediately after the consent from the donor agencies,” Hassan said.

He said the platform would have a team of 30-40 skilled staff from the central bank to gather and update necessary information from the banks to monitor all transactions constantly to check any wrong-doing.

“The team would take immediate step to check any irregularity if the IT-based platform identifies any suspicious transaction,” the BB official said.

He said central banks in many countries are effectively curbing corruption in banking and financial sector by using IT-based monitoring system.

News: The Daily Sun/Bangladesh/12-Sep-12

Dr Atiur Rahman, Governor of Bangladesh Bank, distributes housing loans at a function at the conference room of the Bank in Dhaka Monday.

Bangladesh Bank disbursed Tk 34.5 million housing loans at five percent interest rate to 40 Non-government Organisations (NGOs) for providing financing facilities to the poor people of the country.

Dr Atiur Rahman, Governor of Bangladesh Bank, distributed the credits under the Bangladesh Bank Housing Fund at a function at the conference room of BB in Dhaka Monday.

M Mahfuzur Rahman, Executive Director of the Bangladesh Bank, AFM Asaduzzaman, General Manager of Governor’s Secretariat and other representatives from different NGOs were present at the meeting.

The BB chief said though there is housing financing facility for the rich and the middle class people, but there is no institutional housing management for the poor people.

The fund, being constituted in 1998, is in operation in 450 upazilas of 64 districts across the country. At present, 452 NGOs of the country has been implemented the activities, the BB Governor said.

Tk 1.35 billion has already been distributed to the NGOs under the fund. About 54,000 houses have been implemented through this fund, Atiur said.

The NGOs which received the Bangladesh Bank Housing Fund are Modern Development Foundation, Sirajganj, Socio Welfare Advanced Committee, Jhenidah, Jonohitoushi Sangstha, Pabna, Beel Hamra Samajik Unnayan Sangtha, Bogra, Diba, Jessore, Sangram, Borga, Chetona Mohila Unnayan Sangtha, Barisal, Usha, Satkhira, Crescent, Satkhira, Pathokoli, Patuakhali, Palli Progoti Shahayak Samity, Faridpur, Bardo, Dhaka, Ousgara Unnayan Sangtha, Joypurhat, Gonokalyan Sangtha, Hobiganj, Samaj Unnayan Kendra, Brahmanbaria.

The organisations include NIDA, Manikganj, Bagerhat Village Development Foundation and SDO, Adams, Khulna, Pallybandhu Unnayan Sangtha, Savar, Chirantani and Shatabdi Unnayan Sangtha, Tangail, Maa-o-Shard, Comilla, Palli Unnayan Sangtha, Jhalakathi, Shapla Unnayan Sangtha, Rajshahi and SDP and Shur Sharathi Foundation, Dhaka.

News: The Daily Sun/Bangladesh/12-Sep-12