Engr. Mustafa Anwar, Acting Chairman of Islami Bank Bangladesh Limited, addresses the concluding session of a two-day-long Annual Business Development Conference of the bank at a city hotel on Friday.

Concluding session of two-day long Annual Business Development Conference of Islami Bank Bangladesh Limited (IBBL) was held at a city hotel on Friday.

Engr Mustafa Anwar, acting chairman of the bank was present in the programme as chief guest, said a press release.

Engr. Eskander Ali Khan, Chairman, Executive Committee of the bank attended the conference as special guest.

Mohammad Abdul Mannan, presided over the programme.

A Rouf Chowdhury, Chairman of Bank Asia, along with the recipients of Bank Asia Higher Studies Scholarship seen at a function at Sirajdikhan auditorium in Munshiganj on Friday. 

Bank Asia has provided higher studies scholarship to 28 meritorious students of Sirajdikhan, Malkhanagor, Baligaon, Nimtola in Munshiganj and Rohitpur in Keraniganj and Agla Bazar of Nababganj, Dhaka.

A Rouf Chowdhury, Chairman of the bank, handed over the scholarship money to the students at Sirajdikhan Upazilla auditorium in Munshiganj on Friday, said a press release.

Mohammed Lakiotullah, Vice Chairman, Rumee A Hossain, Chairman of the Board Audit Committee, M Irfan Syeed and Shah Md Nurul Alam, Directors of the bank, attended.

Abdul Hai Sarker, Chairman of the board of directors of Dhaka Bank, presides over annual conference at Radisson Blu Water Garden Hotel in Dhaka on Saturday. 

Dhaka Bank Limited (DBL) organised an annual managers’ conference at Radisson Blu Water Garden Hotel in Dhaka on Saturday.

Abdul Hai Sarker, Chairman of the board of directors of the bank, inaugurated the conference as chief guest, said a press release.

Khondker Fazle Rashid, Managing Director of the bank, presided over the conference.

ATM Hayatuzzaman Khan, former chairman, Reshadur Rahman, former chairman and Director, Abdullah Al Ahsan, Mirza Yasser Abbas, Director, Syed Abu Naser Bukhtear Ahmed, Independent Director, Niaz Habib, Additional Managing Director, Neaz Mohammad Khan, Sajjad Hossain, Emranul Huq, Deputy Managing Directors of the bank, attended the function.

Bangladesh Bank has imposed a restriction on spending by the commercial banks on purchasing motor vehicles, apparently to prevent them from the recent buying spree of expensive luxurious cars.

All the scheduled banks have been asked not to purchase any more motor car (Sedan) for their own at a cost more than Tk50 lakh and a SUV (sport utility vehicle) not above Tk1 crore, even if it is with the banks’ own funds.

“Bank companies should show their cost affordable tendency to maintain confidence of the depositors and equity providers on management,’’ said a circular issued yesterday. The directives take immediate effect.

Recently, Chairmen, CEOs and high officials of some banks seemed to have the tendency to purchase luxurious motor cars and high expenses for branch decoration. The central bank issued the directive to discourage the high expenses. The commercial banks often come under criticism recently due to their desperate spending particularly to provide the directors with luxury cars, which put pressure on the banks’ profitability.

The circular said the bank companies are allowed to purchase vehicles similar to those of security vehicles for carrying remittance. However, they are not allowed to collect motor car by taking lease financing facility from other banks or financial institutions, according to the circular.

The growth of increasing vehicles has to be consistent with the increase of manpower as well as the branch of the company. Annual expenditure growth in this sector should be limited to 10%. The vehicles for the board chairman and chief executive officers should be replaced after using vehicles for at least five years.

The information on using the motor vehicles and their operating cost should be placed before the board meeting in every six months and the annual general meeting. Banks are not allowed to use space above 5,000 square feet for city branches and 2,000 square feet for rural branches.

The expenditure on IT equipment will not exceed Tk1,500 for occupying one square feet of space for new branches and for existing branch transfer, it will not exceed Tk1,000 per square feet, according to the circular.

The banks should consider quality and durability of the furnitures and fixtures to be procured based on the necessity instead of their luxuriousness.

News:Dhaka Tribune/17-Jan-2014

Bangladesh Bank has advised the bank companies which have accounts of US taxpayers to report to the country’s internal revenue service (IRS).

A circular issued yesterday made the advice to do it as per Foreign Account Tax Compliance Act (FATCA) of the United States.

As Bangladesh government has not yet decided to execute an intergovernmental agreement with the US, the obligation can alternatively be discharged at individual bank level by registering and signing ‘Participation Agreements’ with the IRS, it said.

National Board of Revenue also consented on registering with the IRS if a bank has US taxpayer accounts in its books.

FATCA enacted in 2010 requires a foreign financial institution (FFI) to report to the IRS information about certain accounts held by US taxpayers or by foreign entities in which US taxpayers hold a substantial ownership interest.

According to the definition of FFI, all banks as defined in the Bank Company Act, 1991 have come within the provisions of FATCA.

Banks said FATCA may have implications for their customers and operations should register themselves with the IRS and put in place appropriate processes and controls to ensure compliance with the law.

The concerned banks are advised to visit the IRS’s website, www.irs.gov/fatca-registration, for necessary guidance in this regard.

Banks should communicate with the existing customers well in advance of executing “Participation Agreement” with the IRS enabling the accountholders to comply with reasonable requests for information or to provide acceptable documentation to meet the FATCA obligations, according to the circular.

Bangladesh Bank said because the agreement requires disclosures which would normally be breaches of the banker’s general duty of confidentiality under prevalent Bangladeshi

laws including the Bankers’ Books Evidence Act 1891, banks are to obtain written consents from their customers before reporting the requested information to IRS.

News:Dhaka Tribune/17-Jan-2014