After financial institutions, the central bank now brings all non-bank financial institution (NBFIs) under the early warning system to keep all their financial activities under constant monitoring.
The central bank yesterday formally introduced the early warning system for NBFIs in the backdrop of frequent financial scams in the country’s banking sector. “Introduction of the early warning system would help the NBFIs consolidate their financial base and make transactions more transparent and accountable,” said Bangladesh Bank governor Dr. Atiur Rahman while inaugurating the new system at the central bank’s conference room on Tuesday in presence of chiefs of NBFIs.
Despite having a little bit problem, the country’ banking sector stands on better footing as compared with other sectors, said the governor adding that the new system would bank the NBFIs more prudent. The central bank took a number of initiatives to introduce various elements of good governance in the banking sector in order to make the financial institutions more stable.
The central bank has already introduced camel rating System, Basel II,  automated clearing house, electronic fund transfer, online CIB, online banking, internet banking, mobile banking, national payment switch and e-commerce system with a view to making the financial sector more accountable and transparent, also said the governor.
Like the board of directors of financial institutions (FIs), the identification of risks in credit management is equally important to operate its business smoothly, said the governor. He also called upon the NBFIs to strengthen their risk management cells to cut the possible financial scams. Appreciating the role of risk management cell, the governor also asked the NBFIs to identify its weak areas to reduce the financial risks. Atiur also warned FIs to strictly follow the risk management guidelines of the central bank with a view to reducing the credit risk. The proper application of risk management cell would help the banks save from any devastation, also said the governor. “We have to implement the risk management cell and early warning system appropriately to uphold the customers trust on banking sector,” said Atiur.
Despite global and domestic economic shocks, country’s banking sector remains strong due to the rational policy and guidelines of the central bank, he added.
He also underscored the need for strengthening the issues of good governance for FIs for further economic development of the country. President of Bangladesh Leasing and Finance Companies Association Asad Khan demanded for reduction of interest rates.

The Independent/18-Jun-2014

Merchant bankers yesterday demanded reduction of corporate tax on merchant banks, which are non-listed companies, to 35 per cent in the next fiscal (2014-15) from the existing 37.50 per cent.
Leaders of Bangladesh Merchant Bankers Association (BMBA) placed the demand at a post-budget press conference at Purbani Hotel in the city yesterday. They also demanded stimulus package for small investors in the stock market and treating provisioning and write-off loss as tax deductible. BMBA vice president Md Akter Hossain Sannamat read out the proposals at the press conference while BMBA president Tanjil Chowdhury, BMBA secretary general Md Moshiur Rahman, executive committee member Md Moniruzzaman, among others, were also present.
In the proposed budget for 2014-15, the government reduce the corporate tax rate of non-listed companies to 35 per cent from the present 37.50 per cent, Md Akter Hossain Sannamat.
Among the capital market institutions, asset management companies are in 27.50 per cent tax bracket whereas stock brokers will have to pay 35 per cent, he said adding that only merchant bankers will have to pay 37.50 per cent taxes although they are the biggest sufferers in the stock market crash.
Even though merchant banks are also non-listed companies, the corporate tax rate of such companies remained unchanged at 37.50 per cent in the proposed budget for 2014-15, Sannamat said.
Merchant bankers are passing through serious financial troubles because of debacle in the country’s capital market, he said adding that many of the merchant banks will have to show losses in their income statement.
Thus, the government should also reduce the corporate tax of merchant banks to 35 per cent in the next fiscal from the present 37.50 per cent, the BMBA vice president said. Besides, such a reduction will not affect the government’s revenue collection, he thinks.
As per the government’s instruction, the merchant banks waived 50 per cent interest on account of affected small investors in the share market crash, he said.
Although the National Board of Revenue was supposed to treat the 50 per cent interest as ‘tax allowable expenses’ according to the instructions of Ministry of Finance, the interest is yet to be treated as allowable expenses, he said.

The Independent/18-Jun-2014

Bangladesh Development Bank Ltd (BDBL), the state-run specialised bank, has earned Taka 102 crore net profit during the 2013 year, which is Taka 18 crore more than the same period of previous year.

This was informed at the 4th Annual General Meeting (AGM) of the bank at its head office here.

Chairman of BDBL Board of Directors Professor Santi Narayan Ghosh presided over the meeting, which was attended, among others, by directors Dewan Nurul Islam, Kazi Morshed Hossain Kamal, Advocate M Abdus Salam, Syed Efter Hossain Piar, M Fayekuzzaman, M Mamun-al-Rashid, professor Dr Rustom Ali Ahmed and Khalilur Rahman Siddiqui.

BDBL managing director Dr M Zillur Rahman, Additional Secretary of Bank and Financial Institution Division of Ministry of Finance Gakul Chad Dash were also present.

Speaking on the occasion, Dr Zillur Rahman said the bank has sanctioned Taka 475 crore as loans in the year 2013.

Of the amount, Taka 33.91 crore for 19 long-term projects, Taka 40.15 crore for 498 SME projects and the rest Taka 400 crore were sanctioned for other ventures.

Daily Sun/18-Jun-2014

Exim Bank Limited has declared 11 percent stock dividend for its shareholders for the year ended on December 31, 2013.

The declaration came at the bank’s 15th Annual General Meeting (AGM) held at RAOWA Complex, Mohakhali DOHS in Dhaka on Tuesday, said a press release.

Md. Nazrul Islam Mazumder, Chairman of the Board of Directors of the bank presided over the meeting.

The financial statements including balance sheet, profit and loss account for the year ended on December 31, 2013 was received and adopted in the AGM.

Md. Abdul Mannan MP, Vice Chairman, Md. Habibullah Dawn, Md. Nurul Amin, Md Omar Farooque Bhuiyan, Md Shahidullah, Major (Rtd.) Khandaker Nurul Afser, Lt. Col. (Rtd.) Serajul Islam, Anjan Kumar Saha, Khandaker Md Saiful Alam, Directors, Md Sekandar Khan, Independent Director, Abdullah Al Zahir Swapan, Nasima Akhter, Sponsors, Dr. Md Haider Ali Miah, Managing Director, Md. Fariduddin Ahmad, Adviser and Md. Golam Mahbub, Company Secretary of the bank were present at the meeting.

A large number of shareholders attended the meeting and expressed satisfaction over the achievement of the bank during the year.

Daily Sun/18-Jun-2014

A special training course on “Foreign Exchange and International Trade” begins at Al-Arafah Islami Bank Training and Research Academy in Dhaka on Tuesday.

Md. Habibur Rahman, Managing Director of the bank inaugurated the course as chief guest, said a press release.

Sun/18-Jun-2014