Banking

Shamsuddin elected chairman of PBSL

Posted by BankInfo on Thu, Jul 02 2015 11:53 am

Business Desk :Dr Shamsuddin Ahmad has been elected Chairman of Prime Bank Securities Limited in the 21st Board meeting of the company held recently, says a press release. Dr Ahmad is also the Chairman of the Audit Committee of the Board of Prime Bank Limited.Dr. Ahmad is a distinguished development practitioner with 26 years of experience in the World Bank tackling development challenges in the financial sectors of several countries.  Before retiring in February 2015, he was a Senior Financial Sector Specialist in the South Asia region of the World Bank. He has worked extensively with the Bangladesh Bank, the State Bank of Pakistan and the Nepal Rastra Bank in assisting these Central Banks to transform themselves into professional, efficient and modern institutions. Dr. Ahmad obtained his Masters and PhD degrees in Development Economics from the University of Hawaii, and returned home to join the World Bank Office in Dhaka in October 1989. He was later posted in the Islamabad, Kathmandu, and Washington DC offices of the World Bank. He has won several awards in his educational and professional pursuits, including the prestigious Makana Award for leadership at the East West Center.

News:New Nation/2-Jul-2015
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BB toughens anti-money laundering steps for non-banks

Posted by BankInfo on Thu, Jul 02 2015 09:23 am

Bangladesh Bank issues a master circular asking all financial institutions to follow anti-money laundering and terrorist financing rules strictly.

Bangladesh Bank has tightened its rules for non-bank financial institutions against money laundering and terrorist financing, aiming to effectively check the menace.

The chief anti-money laundering compliance officer of each institution must submit an annual report to the BB's Financial Intelligence Unit (BFIU) by January 15 every year, according to a notice issued by the central bank yesterday.

The Central Compliance Unit (CCU) in each institution has to submit a report on anti-money laundering and terrorist financing activities, progress report and recommendations to the chief executive of the institution on a half yearly basis.

Later, the CEO will forward the report to the board of directors and the BFIU.

The central bank issued a similar notice for banks in December last year. The insurance industry will also receive a similar notice soon, said Mahfuzur Rahman, executive director and chief spokesman of the central bank.

Although Rahman said there were no big changes in the latest notice, the industry players found significant additions.

The financial institutions must comply with the Money Laundering Prevention Act 2012 and Anti Terrorism Act 2009 (including amendments of 2012 and 2013), according to the notice.

A financial institution has to report to the BFIU immediately after any news regarding money laundering and terrorist financing published in mass media.

The BB has asked the institutions to increase due diligence for “politically exposed persons” and their family members and close associates.

Similar attempts must be taken by the FIs for influential persons (persons who have been entrusted domestically with prominent public functions) and their family members and close associates. It said FIs have to know their sources of income.

Also, FIs were advised to follow certain customer identification procedure for opening of accounts and monitoring transactions of a suspicious nature for the purpose of reporting it to the BFIU.

The know-your-customer (KYC) policy is no more limited to the accountholder only, according to the notice.

From now on, KYC of a beneficiary has to be ensured. In case of a company, shareholders having 20 percent or more shares will be considered as a beneficial owner, and separate KYC has to be done for them. 

If a customer fails to meet due diligence standards, the financial institution must not open account, or will close existing account with a prior notification to customer and higher management.

The notice also stressed using anti-money laundering and terrorist financing issues before the recruitment of employees.

News:The Daily Star/2-Jul-2015
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Banks' profits rise slightly

Posted by BankInfo on Thu, Jul 02 2015 09:12 am

Most private banks saw their profits rise, though slightly, in the first six months this year despite political unrest and a cut in lending rates.

Bankers expect the profits to get healthier by the yearend if political stability prevails.

Profits of Islami Bank Bangladesh,c the largest private bank, rose 1.45 percent year-on-year to Tk 840 crore in January-June, according to preliminary statistics.

Pubali Bank, another large bank, made profits of Tk 350 crore during the period, a rise by 2.94 percent year-on-year.

Bank officials said political unrest during January-March affected the country's trade and commerce, taking a toll on their business.

Managing Director of Mutual Trust Bank Anis A Khan said banks are now trying to recover their losses and profits may rise in the next six months.

Mohammad Abdul Mannan, managing director of Islami Bank, said, besides political uncertainty, stagnation in investment has led to excess liquidity in the banking system.

 

Big businesses are not interested to go for fresh investments now, he added, but hoped investment may pick up in the second half.

Mannan also said, though lending rates have been falling gradually, banks cannot cut deposit rates just as, which is why making profits has become difficult.

Banks had excess liquidity of Tk 103,756 crore at the end of April this year, according to central bank statistics.

An official of United Commercial Bank said banks are being compelled to reduce lending rates due to stiff competition. Banks will lose clients if they do not lower interest rates, he said, adding that 75 percent of their income comes from interest.

The average lending rate was 11.88 percent in April this year, down from 13.25 percent in the same month last year, according to Bangladesh Bank. Managing Director of Pubali Bank Md Abdul Halim said export-import started gaining momentum as political stability has been restored. Profits will go up further by the end of the year, he added.

According to the central bank, private sector credit growth is increasing gradually -- it rose to 13.27 percent at the end of April this year from 12.27 percent in June last year.

News:The Daily Star/2-Jul-2015

 

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Action against Basic bank scam after probe: Muhith

Posted by BankInfo on Wed, Jul 01 2015 11:49 am

UNB, Dhaka :Finance Minister AMA Muhith on Tuesday told Parliament that action will be taken against the culprits behind the Basic Bank scam once the probe report by its board of directors is available."We've already formed a new board of directors for Basic Bank. They' ll place a report on the scam. Appropriate action will be taken once the report is on hand," he said taking part in discussion over cut-motions before the passage of the national budget for fiscal 2015-16.The minister said, they have already taken some measures so that culprits behind the Basic Bank scam cannot flee the country. Mentioning that liquidity crisis created in Sonali Bank and Basic Bank during his government regime, he said, "We face problem when liquidity crisis appears. We've taken adequate measures to remove the crisis."Noting that some Sonali Bank officials are accused in the bank forgery, Muhith said a deputy general manager of Sonali Bank was taken to jail who later died there, but a managing director could not be taken to jail.

News:New Nation/1-Jul-2015
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Atiur attends AFI meeting in Switzerland

Posted by BankInfo on Wed, Jul 01 2015 09:51 am

Bangladesh Bank (BB) Governor Dr. Atiur Rahman attended the Alliance for Financial Alliance (AFI) Standing Committee Meeting at Bank for International Settlements (BIS) in Basel of Switzerland on Monday.
The meeting had important decisions related to upcoming Global Policy Forum (GPF) on Financial Inclusion to be held in Mopputo of Mizambique in September this year. The theme of this year's GPF is SME Financing. The AFI is a network of financial inclusion policymakers, BSS reports.
Dr. Rahman elaborated on creative intervention of the BB for enhanced SME financing, particularly for the unbanked women entrepreneurs, a BB press release said here today (Tuesday).
The Committee also passed new financing arrangement of AFI.
Tanzanian Governor Professor Benno Ndudu, another member of the Standing Committee and Alfred Hanning, Executive Director of the AFI also attended at the meeting.
Deputy governors of central banks of Ghana and Brazil also participated in the meeting while other members joined the meeting through video conference.
Dr. Rahman also attended another meeting with Swiss Export Credit Agency (SERV) in Zurich and discussed the possibility of SERV covered export credit for Bangladesh textile, pharmaceuticals and high-tech industries.

News:Daily Sun-30-Jun-2015

 

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