The booming shipbuilding industry may get a Tk 200 crore refinancing fund, as the Bangladesh Bank (BB) will review the scheme tomorrow at its board meeting.

The central bank is keen to start funding the industry under the scheme, said an official of the central bank yesterday.

The BB earlier sanctioned the fund to give a further boost to the sector, which is considered to be the country's second largest export industry after readymade garment.

Once approved, shipbuilders will get loan at a 10 percent interest rate. The other criteria of the scheme will be disclosed elaborately after the finance ministry's approval, the BB official added.

Industry insiders said the much expected refinancing is being delayed due to an apprehension that such funding may influence the rising inflation.

But people from the banking sector, dismissing the fear, said the fund is too small to impact inflation.

High financing cost is the only bottleneck in the growing industry, said Abdullahhel Bari, president of Association of Export Oriented Shipbuilding Industries of Bangladesh.

Source: The Daily Star

DHAKA, Dec 25: Bangladesh Bank (BB) will adopt a more flexible monetary policy next year to cope up with the increasing inflation, food prices and boost rural resources in both farm and non-farm sectors. The new monetary policy, scheduled for mid-January, will put the target for taming inflation, accelerating inclusive growth, reducing poverty and bringing a holistic change in the rural economy, BB Governor Dr Atiur Rahman said on Saturday.
Rahman was addressing a programme of Southeast Bank in the city to distribute scholarships among meritorious students under the CSR (corporate social responsibility) scheme of the bank.
Speaking about the ensuing monetary policy, he said the policy would be more flexible to accelerate inclusive growth, faster poverty reduction and spur rural economy.
The BB is now also pursuing a flexible monetary policy while it is moderately regulating the rate of interest, money supply and banks’ involvement in non-core financial sector.
The central bank during this outgoing year capped interest rate to boost lending to industries, agriculture and other productive sectors when it discouraged banks to finance non- productive areas like real-estate and stock market.
Rahman did not detail the next policy, but made it clear that the central bank would give more attention to bring a holistic change in the rural economy, meaning rural farm and non- farm sectors would get more and cheaper loans.
The central bank in its current monetary policy has focused on inclusion of the people who have not getting institutional services for a long time.
The initiatives include offering farmers bank account for Taka 10, disbursing loan to sharecroppers and introducing mobile banking.
The governor said the new policy would focus on how banks can brought more rural people under institutional financial services.
A BB official said the governor is meeting the country’s leading economists tomorrow (Sunday) to discuss the monetary policy.
The governor already held similar meeting with former governors, business leaders and bankers to make the monetary policy more conducive to domestic economy, the official said.     BSS

Source: The Independent

Bangladesh Bank Governor Atiur Rahman yesterday said the bank has directed the commercial banks to set up dedicated desks for women entrepreneurs to ensure friendly atmosphere for them.

The BB governor was attending a loan distribution programme for silk-based small and medium enterprises (SMEs) by the women of indigenous Manipuri community at Kamalganj upazila of Moulovibazar, said a press release.

Bangladesh Krishi Bank (BKB) distributed the loan of Tk 1.5 million among 30 women entrepreneurs of the area to facilitate their silk-based SMEs.

While addressing the function, Atiur Rahman said the loan limit for small entrepreneurs has been re-fixed at Tk 50,000 from 5 million for their convenience.

He also informed that over Tk 380 billion had been distributed in SME loans till September 30 this year which is 160 percent higher that the target amount of 240 billion.

The BB governor also said Bangladesh Bank is considering taking various initiatives for the development of women entrepreneurs.

He also urged the borrowers to utilize the money in proper ways to expand their business.

Source: Daily Sun

Bangladesh Bank (BB) Governor Dr Atiur Rahman yesterday said the Bangladesh Bank has taken steps to turn all its activities IT based, while it CID activities would go online within next month.

All banks would also start mobile banking systems in a broader way within next two to three months, he expected.

Dr Atiur Rahman was addressing as the chief guest a roundtable titled “Financial Inclusion and Impact of ICT” organised jointly by NeoSTAR Alliance and Bank Al-falah Ltd at the National Press Club VIP lounge.

Parliamentary standing committee chairman on Post and Telecommunication Ministry Hasanul Huq Inu addressed as special guest.

Dr Atiur Rahman said: “It is the time to reach at the doorsteps of poor rural people, and it is the IT solution only that can do it. I always support the partnership between mobile phone companies and banks as they can play a vital role in this acts.”

He called upon the banks to increase their corporate social responsibility (CSR) activities and provide loan to the poor farmers including women farmers.

Praising the effectiveness of the farmers account, that was opened just for Tk 10, he called upon the banks to provide one per cent more interest from the normal interest rate to encourage the farmers for savings. He also informed that the National Board of Revenue (NBR) has already exempted those accounts from tax coverage.

“We need to focus on marginal people who have no access to banking service. But we have nationwide mobile network coverage that we can utilise to spread the banking service at the doorsteps of the rural people,” he added.

Hasanul Haq Inu stressed on the need for removing social injustice in order to improve broader IT services in the country. According to International Labour Organisation (ILO) data, ICT implementation in various financial sectors might reduce 50 per cent operating cost, he mentioned.

“Technology has no alternative to achieve financial inclusion. But proper knowledge and capacity building is essential to reach the ultimate destination,” Inu said adding they would recommend the government to change necessary law for expansion of ICT activities in the country.

He sought recommendations from the related authority including banks and IT companies on what kinds of changes are needed with the law for the development of ICT uses.

Speakers of a roundtable yesterday said the country was moving forward towards development.

“It’s the time to implement mobile and IT solution system for better financial inclusion. Mobile banking is one the key component in this respect,” they said.

The goal of the event was to bring financial institution, technology companies and software solution developers at the same platform to critically analyse the profound impact of financial inclusion on emerging economy.

President of Association of Mobile Telecom Operators in Bangladesh (AMTOB) president Zakiul Islam presented the key note paper at the programme moderated by Habibullah N Karim, MD and CEO of Technohaven.

Zakiul Islam said the country in the past failed to introduce mobile service system in the financial sector for tough law but the present government has taken initiatives.

He said at present only 7 to 10 per cent of the people are getting banking services in the country, while 35 to 40 per cent people have access to mobile phone. So, banks can avail such a grate opportunity, he added.

Top officials from banks, mobile network operators, technology companies, and universities also took part at the discussion.

Source: Daily Sun

Bangladesh Bank (BB) has asked banks not to finance the purchase of any car older than five years.

The central bank emphasised that the banks willing to finance the purchase of used cars must prepare a set of uniform guidelines to determine the value of the vehicles.

“However, in no case the banks will finance the cars older than five years,” it said in a notice to the scheduled banks.

The central bank also instructed the banks to finance the vehicles imported as described in the existing import policy order.

Source: The Daily Star