Renowned economist Dr AB Mirza Azizul Islam on Saturday said rebuilding the banking sector based on ethics has emerged as a big challenge globally and emphasised avoidance of ‘unethical practice’ in the sector. “Many countries have faced economic disasters due to unethical activities by banks,” the former finance adviser to the caretaker government said while addressing an award-giving ceremony in the city as the chief guest.

Mirza Aziz said if banks deviate from ethics, it will not only harm banking sector but also the society will be affected. The reputed economists cited examples of the late 90s Asia Economic Crisis, 2007-2008 global economic meltdown and the recent Euro-zone economic crisis, and said the unethical activities of banks were largely responsible for these crises.

The Industry, an economic weekly of the country, arranged the function at National Press Club to award 10 best-rated banks based on the international assessment method of capital, asset, management, earning, liquidity and sensitivity to the market risk (CAMELS) rating.

Eminent lawyer and former attorney general Barrister Rafique-ul-Huq, Global Economist Forum, Bangladesh president Shah M Nurul Alam and Bangladesh Commerce Bank chairman AQ Siddiqui were also present at the function as the special guest with The Industry editor Enayet Karim in the chair.

The Daily Sun/Bangladesh/ 22th Jan 2012

The Banking Division has instructed the government-owned banks and financial institutions to remain cautious about the acquisition of bad loans as such practice has created fund problems in the public financial institutions.

At a meeting with the Managing Directors and Chief Executive Officers of all the state owned commercial and specialised banks last month, the Banking Division of the ministry of finance also directed the entities to reduce their capital deficit, risky assets and classified loans as well as stabilise their credit and deposit rates.

The meet was hold to evaluate the performance of the institutions on the basis of six indicators.

The Banking Division directed the government banks to be careful about the acquisition of other banks’ loans at a time when a state-owned commercial bank has immersed in huge financial problem for this particular reason, banking division secretary Shafiqur Rahman Pathwary told daily sun last week.

Pointing out the name of the bank, he said Janata will overcome the financial problem by realising its defaulted loans.

He said public banks will reduce their borrowing from the call money market, as government has reduced its borrowing from the banking systems.

In the meet, public banks have also been instructed to accumulate necessary amount of funds to maintain international banking standards by implementing Basel-II, official sources said.

The meeting gave 14 directives to the state owned commercial banks and financial institutions -- Sonali , Agrani , Janata, Rupali , Bangladesh Krishi Bank(BKB), Basic Bank, Bangladesh Development Bank, and Investment Corporation of Bangladesh (ICB).

One of the directives asked the management of the public banks to be careful about the foreign trips by their MDs and CEOs and also to inform the banking division prior to such visits.

As per the latest report, the capital shortage of Janata Bank stood at Tk 2.11 billion, Agarni Bank Tk 1.81 billion, BKB Tk 47.47 billion BASIC Bank Tk 376.9 million till October 30, 2011.

The central bank statistics show that at the end of November last year, classified loan of BDBL accounted 27 per cent of its total loan, while the rate was 22 per cent for Rupali Bank, 23 per cent for BKB and 19 per cent for ICB.

According to statistics, in October 2011, Sonali had a risk–based asset worth Tk 326.90 billion, while that for Janata was of Tk 312.26 billion, Rupali Tk 111.78 billion, BASIC Bank Tk 63.11 billion, BDBL Tk 34.94 billion and ICB Tk 41.73 billion.

As per the directive, the state-owned commerce banks and financial institutions should set up subsidiary companies on an emergency basis with taking prior approval from BB, the Securities and Exchange Commission and the Banking Division.

If they fail to set up such subsidiary companies, concerned banks and financial institution should explain the causes to the Banking Division.

The government enterprises should deposit a total of 75 per cent of their fund to state-owned commercial banks, said the directive.

The Board of Directors of public banks should inform important matters of the banks to the government representatives appointed in the board.

Public banks should arrange third party meetings regularly to solve their audit objections and replace the inactive government-appointed lawyers for the Artha Rin Adalat (money loan court) with fresh recruitments, said the directive.

The Banking Division should also be informed before public banks negotiate or sign deals with other ministries, divisions or the central bank, the directive said.

Bangladesh Bank (BB) official sources, however, said the Banking Division has intensified it monitoring on public banks and financial institutions through the directives though such authority is vested in central bank. Government banks were made public commercial banks in recent years to hold the supremacy of BB on them, said the sources.

BB officials also said matters which were earlier monitored by the central bank would now be supervised by the Banking Division, which they think was not sound for the sector.

The Daily Sun/Bangladesh/ 22th Jan 2012

Chairman of United Commercial Bank Limited Akhtaruzzaman Chowdhury, MP along with other members of the Board and Senior Management of the Bank at Annual Business Conference - 2012 Wednesday.

The Annual Business Conference 2012 of United Commercial Bank Limited was held Wednesday at Radisson Water Garden Hotel in the city.

Chairman of UCB and Chairman of Parliamentary Standing Committee on Ministry of Textiles and Jute Akhtaruzzaman Chowdhury, MP graced the event as the Chief Guest.

Managing Director of UCB M Shahjahan Bhuiyan delivered his welcome speech.

Among others Vice Chairman Mr. Showkat Aziz Russell, Chairman of Executive Committee Mr. M. A. Sabur, Chairman of Audit Committee Mr. Md. Jahangir Alam Khan, members of Board of Directors namely Mr. M. A. Hashem, Hajee M. A. Kalam, Mr. Saifuzzaman Chowdhury, Mr. Bazal Ahmed, Mr. Nurul Islam Chowdhury, Mr. Shabbir Ahmed, Mr. Ahmed Arif Billah, Mr. Tanvir Khan along with Additional Managing Directors, Deputy Managing Directors, Branch Managers and Senior Executives of Head Office were present at the event.

Chairman of the Bank called upon everybody to increase professional skill along with best customer service to keep the zenith position of the Bank in the ever changing environment.

Managing Director of the Bank thanked everybody including Board of Directors for their support to create mutual dignity and business friendly environment which is always contributing to Bank's continuous success.

Deputy Managing Director and Company Secretary of the Bank Mirza Mahmud Rafiqur Rahman conducted the event.

The Financial Express/Bangladesh/ 19th Jan 2012

Rajshahi Krishi Unnayan Bank ( RAKUB) has disbursed Tk 502.92 crore as loan to boost rural economy as well as create employment through enhancing agricultural and non- agricultural production in the country’s north-western region during the first six months of this current 2011-12 fiscal. The Bank has also realised Tk 618.67 crore including Tk 133.43 crore classified and other outstanding loans.

The Daily Indepedent/Bangladesh/ 18th Jan 2012

Bangladesh Bank Governor Dr Atiur Rahman inaugurates bKash for GrameenPhone at a city hotel yesterday.

The Daily Sun/Bangladesh/ 19th Jan 2012