Stock market investors demonstrated in different merchant banks and brokerage houses in the capital yesterday against the latter’s failure to supply loan in line with the Securities and Exchange Commission’s (SEC) new directive.

The SEC, market regulator, on Monday increased the ratio of share credit to 1:2 from 1:1.5 to increase purchasing power of the stock investors.

The decision was followed by a massive 660-point fall in the key index of the Dhaka Stock Exchange (DSE) on Monday that prompted its regulator to suspend trading.

Investors’ demonstration led to a trade suspension of Al-Arafah Islami Bank and IDLC Securities for some time as lenders could not supply credit in line with the new directive yesterday.

Ekramul Haque, managing director of Al-Arafah, told daily sun they could not provide with loan at the new credit ratio due to fund shortage. “We will be able to overcome fund shortage by February”, he added.

Besides, Prime Bank Investment and Uttara Finance and Investment also faced demonstration for this.

BRAC EPL Investment Limited confessed that it could not provide loan following the new directive for fund shortage.

Small scale investors also alleged that merchant banks and brokerage houses gave loans to the bigwigs instead of them.

“We do not have Aladdin’s magic lamps that over night we can manage enough fund to meet the investors’ demand, said a merchant banker preferring not to be named. “The problem will be resolved but it will take time”.

Money market is still tight as the lenders are borrowing money at high rate fixed by the central bank, said Akter H Sannamat, managing director of Prime Finance and Investment Ltd.

Source: Daily Sun/  Bangladesh/ Jan-12-11

The branches of all scheduled banks in the municipal areas in Rangpur and Rajshahi divisions where the municipality elections would be held will remain closed on Wednesday (January 12).

The branches of the banks in municipality areas in Khulna and Barisal divisions will remain closed on Thursday (January 13) for the same reason, said a Bangladesh Bank press release.

Besides, the branches of the banks in the municipality areas in Dhaka division will remain closed on January 17 (Monday) and in Chittagong and Sylhet divisions on January 18 (Tuesday).

The decision was taken for the convenience of the officials of the banks of scheduled banks so that they could cast their votes and take part in the election activities.

Source: Daily Sun/  Bangladesh/ Jan-12-11

National Bank Limited (NBL) and Monohar ICM Krishok Club have handed over farm loans at a function at Rangpur Monohar High School ground in Rangpur recently, said a press release. The chief guest of the programme, Bangladesh Bank Governor Dr Atiur Rahman, distributed agricultural loan sanction letters issued by NBL among local farmers. Md Towhidul Islam Tuhin, president of Monohar ICM Krishok Club, presided over the meeting.

Haroon Or Rashid Chowdhury, executive director of Bangladesh Bank, M Badiul Alam, managing director (CC) of NBL, A K M Shafiqur Rahman and Nazib Uddin Bhuiyan, NBL's deputy managing directors, among others, were also present on the occasion.

News: Daily Sun/Bangladesh/11 Jan 2011

AB Bank Limited has recently distributed blankets and warm clothes to the deprived and winter stricken poor people to help them out in this fierce season of winter. Under this programme, AB Bank Limited distributed warm blankets at Chorforadi, Pakundiya. Kishoreganj recently.

Mr Mahfuzur Rahman, Executive Director of Bangladesh Bank and Mr Majedur Rahman, Additional Managing Director of AB Bank Limited distributed warm blankets among the winter affected people. Other high officials were also present during the warm cloth distribution programme at Pakundiya Upozilla.

News Source: Financial Express/Bangladesh/11 Jan 2011

Atiur Rahman, Bangladesh Bank governor, urged all bank executives to change their attitude towards farmers for the sake of agricultural development in the country. Rahman was speaking at a farmers' assembly at Silimpur village in Ishwardi upazila under Pabna district on Sunday after inaugurating a biogas plant in the residence of a local farmer Moyez Uddin.The country's industrial development depends on the progress of the agriculture sector, the governor said.

"Agriculture is the key to economic success here. The real development in economy and industry will be happened if we can ensure the real development in agriculture." "The bankers have to change their mind setup and have to be friendly to the farmers to reach the goal." He also asked the farmers to cooperate with the banks.

Farmer Moyez Uddin chaired the meeting where Shaikh Siraj, a founding member of Channel i, and Sayed Abdul Hamid, Agrani Bank managing director, also spoke.

News Source: The Daily Star/Bangladesh/11 Jan 2011