The Bangladesh Institute of Bank Management (BIBM) has organised a five-day training course on "Asset-Liability Management in Banks" in the city recently.

The coursed discussed various policies, techniques, strategies and risks involved in the effective management of assets and liabilities of banks and financial institutions, said a press release.

A total of 25 senior officials from different banks and financial institutions participated in the course.

Source: The Daily Sun/ Bangladesh/ 29th Nov 2011

KS Tabrez, managing director of DBBL, is seen inaugurating a branch at Major Iqbal Hossain Road in Sunamganj district recently.

Dutch-Bangla Bank Limited has opened its 104th branch in Sunamganj recently.

KS Tabrez, managing director of the Bank formally inaugurated the Sunamganj branch, said a press release.

Like other DBBL branches, the new branch is also equipped to provide on-line banking facilities to the clients from the opening day of the branch.

In his address, KS Tabrez saidDBBL provides a wide array of banking products and financial services including card services to its retail and corporate customers and added that, the Bank has started mobile banking operation, first of this kind in the country to reach banking services to the door steps of the millions of rural people.

Among others, Yamin Chowdhury, deputy commissioner of Sunamganj, Khairul Huda Chapal, president of Sunamganj Chamber of Commerce and Industries, Abul Kashem Md Shirin, deputy managing director of DBBL and owners of business houses and shops were present on the occasion.

Source: The Daily Sun/ Bangladesh/ 29th Nov 2011

The World Bank, together with the UK-DFID and IFC, is supporting the government to develop economic zones, starting with the Kaliakoir Hi Tech Park through the Private Sector Development Support Project.

Economic Zones will improve Bangladesh’s competitiveness as an investment destination and to promote domestic private sector. The government will arrange a road show in December 2011 to promote the Kaliakoir Hi-Tech Park, said a WB press release.

It said that the park will be developed through a Public-Private Partnership initiative. The government has made substantial progress by seeking Expressions of Interest from potential park developers and is now in the process of initiating request for proposals.

Economic Zones are a strategic instrument for attracting domestic and foreign investment, creating jobs and accelerating growth, the release said.

Economic Zones can provide a unique investment location for the country by creating a first-class business environment combined with infrastructure provision.

The World Bank Group is supporting the government in drafting the rules and regulations under the Economic Zones Act to promote Bangladesh as a more competitive and attractive investment location.

The Private Sector Development Support Project aims to promote diversified private sector investment by targeting business environment and access to industrial land, as well as investing in training schemes to make human resources more responsive to enterprise needs.

The project will also support a nationwide mapping of potential sites, followed by feasibility studies, and finance off-site infrastructure in identified EZ sites to leverage private financing for zone development. The $137.5 million project was approved by the World Bank Board in March 2011.

Source: The Independent/ Bangladesh/ 29th Nov 2011

Karmasangsthan Bank (KB) is now trapped in bad debt after 13 years of its inception.

The total classified loans of the specialised bank, which was set up in 1998 with an aim to create self-employment opportunities by financing small enterprises, has stood so far at Tk 30 crore, the bank’s top official admitted. KB has so far disbursed Tk 1,244.30 crore loans.

“The classified loans are relatively higher in view of the bank’s smaller paid-up capital,” Mushtaque Ahmed, KB’s managing director, told The Independent Meanwhile, Bangladesh Bank’s banking inspection department detected that KB’s classified loans are increasing day by day due to disbursement of credit without CIB report.
The central bank is now in a move to make the Credit Information Bureau report obligatory, prior to disbursement of any loans.

BB said in its probe report that as such CIB report is now not a mandatory one for the KB, it has resulted in poor assessment of loan proposals and turned those into classified loans over the years.
"Non-use of CIB report results in turning the loans into classified. Sometimes, a same borrower is being sanctioned loans by KB who earlier took advances from a bank or another financial institute. There are little chances of return of such loans," according to the latest BB report, now on the table of the governor for his perusal.

A BB official said they will soon have talks with the KB  officials for introducing the CIB report.
Mushtaque, however, said that he did not receive any call from the central bank about holding talks. On the loan recovery, he said, "The current rate of recovery is 93 per cent while the rest 7 per cent turns classified. We need to improve the recovery rate and bring the classified loans at lower level."    The KB MD also noted that his bank is a separate financial institute and the central bank's regulations are not obligatory for it. The number of direct beneficiaries of KB is around 2.26 lakh who have employed over 10 lakh persons across the country, according to KB statistics.
In fiscal year 2009-10, the KB has disbursed Tk 215.48 crore among 30,284 unemployed persons and in FY 2010-11, Tk. 330.21 crore wasc disbursed among 41,844 persons.

The bank under the guidance of the ministry of finance is executing a cluster of credit programmes to assist  entrepreneurs for the development of agro-based industries.

Under the patronage of the ministry of labour and employment, the bank is providing credit facilities without security among the self-retired and or retrenched workers and employees. A special programme for eradication of hazardous child labour in the country has been launched by the KB under the patronage of the ministry of labour and employment. Meanwhile, the bank has provided credit facilities without security to the parents of 5000 child labourers.

Source: The Independent/ Bangladesh/ 29th Nov 2011

Bangladesh Bank Governor Atiur Rahman yesterday emphasised the need for regional and international harmonisation and convergence of accounting, auditing and financial reporting standards to help flourish intra- and extra-regional investment and trade relationships.

"Foreign investors will feel comfortable with joint venture and the lending relationships with their Bangladesh counterparts only when they're satisfied about the completeness and transparency of financial statements and disclosures of the local partners," he said.

South Asian Federation of Accountants (Safa), The Institute of Chartered Accountants of Bangladesh (ICAB) and International Accounting Standard Board (IASB) arranged the "Regional standard setters' conference" at a conference at Sonargaon Hotel in the city.

Speaking as the chief guest, Rahman said intra- and extra-regional trade will expand in tandem with increasing openness in investment relationships.

South Asia will need to attract massive volumes of equity and loan investments in its emerging role as a significant hub of global growth, the central bank chief added.

"Intra regional cross border investments within South Asia will be growing; and South Asian investments outside the region will also rise gradually with increasing openness."

The central bank is planning to work with ICAB towards full convergence of the local accounting and auditing standards in financial and real sector with the international best practice standards.

"Bangladesh Bank is gradually imposing more demanding financial reporting and the disclosure requirements for bank and financial institutions in closer convergence with international best practice standards," he said.

ICAB President Parveen Mahmud said the convergence of International Financial Reporting Standards is a major initiative for almost all professional accounting institutes in the world.

She hoped that the deliberations made in the conference will give the participants an opportunity to update themselves on the latest efforts of IASB, and provide an input to IASB on the practicability to shape the future of financial accounting.

Safa President AN Raman also spoke.

Source: The Daily Star/ Bangladesh/ 29th Nov 2011