Banking

BB launches software to safeguard depositors

Posted by BankInfo on Wed, Feb 04 2015 02:06 pm

Bangladesh Bank on Tuesday introduced a software, named ‘Information for Deposit Insurance Premium Assessment (IDIPA)’, to digitize the accounts of deposit insurance trust fund including premium collection, reports UNB. Bangladesh Bank (BB) governor  Atiur Rahman launched the IDIPA software at a function at Jahangir Alam Conference Hall of Bangladesh Bank in the city’s Motijheel.
With the help of this newly introduced software, every deposit insurance calculation along with premium assessment details will be done automatically instead of manual procedure. Speaking on the occasion, the Bangladesh Bank governor said it is now possible to provide safety to the small depositors while receiving the assessed premium of deposit insurance under the ‘Deposit Insurance Act 2000’.
“It is the responsibility of the central bank to provide financial safety to the small depositors,” he added.
Citing that the volume of deposit insurance trust fund has reached Tk 3,661 crore, Dr Atiur said banks collect deposit insurance premium on half-yearly basis and the premium percentage for banks is set considering risk. 
Thus the problem banks have to pay 0.10 per cent premium, early warning banks 0.09 percent and other banks 0.08 per cent.
The trust fund money is invested through five or ten year treasury bills and short term Repo, he said. The governor mentioned that the Bangladesh Bank has proposed the Finance Ministry to bring changes to the ‘Deposit Insurance Act 2000’ for increasing deposit insurance to Tk 2 lakh instead of Tk 1 lakh and rename the Act as ‘Deposit Safety’ law. Under the proposed changes, the deposits will have 93 percent coverage instead of 85 percent.
Bangladesh Bank deputy governors SK Sur Chowdhury, Abu Hena Mohammad Razi Hasan and Naznin Sultana were present at the programme.

News: Independent/4-Feb-2014
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85% bank deposit accounts covered by insurance

Posted by BankInfo on Wed, Feb 04 2015 02:00 pm

The central bank recently proposed to the government to bring the deposits of non-bank financial institutions under insurance protection

Some 85% of the total deposit accounts with banks in the country are covered by insurance.

Under the coverage, most of the small depositors would get their money back up to Tk1,00,000 in case their respective banks face collapse.

The amount will be paid back from the Deposit Insurance Trust Fund of Bangladesh Bank, a function at the central bank headquarters in Dhaka was told. The Fund size now stands at Tk3,661 crore.

Bangladesh Bank has launched a software yesterday titled “Information for Deposit Insurance Premium Assessment” for maintenance of insurance trust fund.

The fund has been formed through taking premium from the commercial banks.

Insurance premium on deposits is collected from the banks in every six months.

The rate of premium is fixed, considering the risk analysis of the respective banks.

The premium rate has set at 0.10% for the troubled banks, 0.09% for early warned banks and 0.08% for other banks.

Bangladesh Bank invested the trust fund in treasury bills and repo sector.

The central bank recently proposed the government to bring the deposits of the non-bank financial institutions under insurance protection.

Inaugurating the software, Bangladesh Bank Governor Atiur Rahman said it would help define the amount of insurance premium on the total deposits of respective banks directly.

The certain amount of premium will be transferred to the trust fund from the account of banks that maintained into the Bangladesh Bank headquarters. Earlier, calculation of premium on insurable deposits was held manually. 

News:Dhaka Tribune/4-Feb-2015

 

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India keeps bank rates on hold

Posted by BankInfo on Wed, Feb 04 2015 01:49 pm

MUMBAI: India’s central bank kept interest rates unchanged On Tuesday, three weeks after announcing an unscheduled cut, signalling that it wants to wait for the government’s annual budget before easing further.

After a meeting in the financial capital Mumbai, the Reserve Bank of India (RBI) said the benchmark repo rate, at which it lends to commercial banks, would stay at 7.75 per cent, reports AFP.

RBI governor Raghuram Rajan said the bank was waiting for further signs of slowing inflation along with the government’s budget due to be delivered on February 28.

“We are looking for further cues on progress of disinflation. And on the fiscal front we have the budget coming up. So those are the important developments we would pay attention to,” Rajan told reporters after the announcement.

Most economists predicted Tuesday’s rate would remain on hold after the RBI surprised investors with a 25 basis points cut on January 15, partly citing cooling inflation, in the first reduction in 20 months.

The RBI has been under pressure from government and business leaders to reduce rates to increase lending and help kickstart Asia’s third-largest economy, but Rajan’s priority has been to bring inflation under control.

Consumer prices, which impact severely on tens of millions of India’s poor, rose five per cent in December, well within the RBI’s target of a maximum six per cent by next January.

The RBI, which on Tuesday also kept the cash reserve ratio unchanged at 4.0 per cent, said inflation is likely to remain on target by January. Prime Minister Narendra Modi, who stormed to power in May last year, pledged to revive the flagging economy by attracting more foreign investors and bolstering manufacturing.

Modi vowed last month to banish India’s reputation as a tough place to do business, telling US President Barack Obama during a visit to New Delhi that he would ease off on taxes and encourage innovation.
News:Daily Sun/4-Feb-2015

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Modhumoti Bank opens ATM booth at Uttara

Posted by BankInfo on Wed, Feb 04 2015 01:40 pm

Md. Mizanur Rahman, Managing Director and CEO of Modhumoti Bank Limited, inaugurates a ATM booth at Uttara branch premises in the capital on Tuesday. 

Modhumoti Bank Limited opened an ATM booth at Uttara branch premises in the capital on Tuesday.

Md. Mizanur Rahman, Managing Director and CEO of the bank inaugurated the ATM booth, said a press release.

Khandoker Rahimuzzaman, Head of Operations, Md. Shaheen Howlader, Head of Business, Javed Khan, Head of Corporate and Investment Banking, SM Imran Alam, Head of Human Resource, Atiqul Islam Akhand, Manager, Uttara Branch and other high officials of the bank were present.
News:Daily Sun/4- Feb-2015

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6 One Bank officials quizzed

Posted by BankInfo on Wed, Feb 04 2015 01:31 pm

The Anti Corruption Commission (ACC) team, led by its deputy director and inquiry officer Zainul Abedin Shebly, questioned them for about three hours from 10 am at the Commission’s head office.

The officials are officer-in-charge of Motijheel branch Mujtaba M Kajmi, principal officer Khaled Al Fesani, senior vice president Asif Mahmud Khan, senior principal officer Engr Mahbub Hasan, principal officer M Anisuzzaman and officer Abu Shahadat M Shahed. 

In April 2014, the ACC launched a probe into the allegation of swindling nearly Tk 1,300 crore from 14 commercial banks and financial institutions by Ananda Shipyard, a manufacturer and exporter of ships.

According to the graft allegation, Ananda Shipyard took loans of Tk 1,300 crore showing fake documents. The banks disbursed the loans violating banking rules when Ananda Shipyard had no experience of building ships.

The Bangladesh Bank in its inspections also found such irregularities in disbursing loans by the banks and financial institutions.
News:Daily Sun/3-Feb-2015

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