Banking
Myanmar could be Asia’s ‘rising star’: IMF
WASHINGTON: Myanmar could become Asia's next economic engine if it enacts vast reforms, the IMF said yesterday, signaling the country could receive a Fund monitoring program in 2013.
"With a commitment to strong reforms, Myanmar has the potential to vastly improve the living standards of its people and emerge as Asia's next rising star," IMF mission chief in Myanmar Meral Karasulu said in a statement.
The International Monetary Fund said the discussions pointed to the possibility of a staff-monitored program next year that would jointly monitor progress on the government's own reform plans.
Karasulu, who wound up weeks of talks with the finance minister, central bank chief and other senior officials, said the government had made rapid strides in reforms to modernize the economy since taking over from a military junta in 2011.
News: The Daily Sun/Bangladesh/23-Nov-12
Mercantile Bank honours meritorious students
Md. Abdul Jalil, MP, Chairman of Mercantile Bank Limited, seen with the recipients of scholarship and vice chairman, directors and deputy managing directors and high officials of the bank at a function in Dhaka recently.
Mercantile Bank Limited distributed Mercantile Bank Abdul Jalil Education Scholarship-2011 scholarships among the meritorious students of junior, SSC and HAS level at a function in Dhaka recently.
Md. Abdul Jalil, MP, Chairman of Mercantile Bank Limited distributed cheques and certificates among the students, said a press release.
The bank distributed the scholarships as part of its corporate social responsibility (CSR). Al-Haj Akram Hussain (Humayun), Vice Chairman, Dr. Toufique Rahman Chowdhury, Al-Haj Mosharref Hossain, Directors, SM Shafiqul Islam (Mamun) and MA Khan Belal, Sponsors, Md. Abdul Jalil Chowdhury, Managing Director and CEO (CC), Monindra Kumar Nath, M A Yousuf Khan, Choudhury Moshtaq Ahmed, Deputy Managing Directors, Rabiul Hossain, Principal of Mercantile Bank Training Institute and senior executives of the Head Office and students with guardian were present on the occasion.
News: The Daily Sun/Bangladesh/23-Nov-12
BB extends deadline for refund of classified term, farm loans
Bangladesh Bank (BB) has extended the deadline for repayment of classified term loan and agriculture credit by six months.
In a circular issued Thursday evening, the central bank authority asked the banks to comply with the extended timeline from the expiry date for repayment of last installment of classified term loans and agriculture credit.
“Because of the latest circular, banks will need less amount of money for adjustment of provisioning against classified loans. As result, banks net profit will increase,” said a BB official, seeking anonymity.
Earlier in June, the central bank had tightened the rules for banks and loan-defaulters to repay classified loans.
Following the BB’s move, the banks needed to keep extra money from profit for provisioning as the amount of classified loans had increased, according to the sources.
Banks were advised to follow other regulatory directives, which mentioned in the master circulars issued on June 14, sources said.
News: The Daily Sun/Bangladesh/23-Nov-12
BASIC Bank's bad loans pile up on aggressive lending
Aggressive lending has doubled state-owned BASIC Bank's non-performing loans (NPL) in just nine months this year, data shows.
The bank's NPL was 4.38 percent of its outstanding loans at the end of December last year, but the amount shot up to 8.10 percent in September this year, indicating a rise in its loan defaults.
Such loans were 4.83 percent of its total loans, both in 2009 and 2010.
Despite a dramatic rise in its bad loans, the bank's top officials think they are on the right track and the situation might improve at the end of the year.
“Some big loans were classified, pushing up the NPL of the bank,” Kazi Faqurul Islam, its managing director, told The Daily Star.
“Some of our loans were classified on qualitative judgment,” said Islam.
Data shows the bank received Tk 1,412.45 crore in deposits during January-September, but it lent Tk 1,456.71 crore during the period violating the Bangladesh Bank rules.
According to BB, a bank cannot lend more than 85 percent of its deposits.
“We're on an aggressive expansion drive; we cannot sit on idle funds,” said A Monaem Khan, deputy managing director of the bank.
Khan said the bank had only 32 branches in September 2009, but now it has 56, excluding those in the pipeline.
A fully government-owned bank different in its objectives from other banks, BASIC started its operations in January 1989.
The bank is a blend of development and commercial banks. Of the bank's total loanable funds, 50 percent are meant for small and cottage industries.
Recently, BASIC Bank came as news reports after the Anti-Corruption Commission launched an inquiry into alleged embezzlement of funds from the bank.
Finance Minister AMA Muhith also said in parliament that there were some irregularities in the bank, but he did not disclose the amount involved.
News: The Daily Star/Bangladesh/23-Nov-12
Singapore summit set to showcase Bangladesh's investment prospects The daylong event on Dec 4 will connect 200 potential investors
Jim McCabe, CEO of Standard Chartered Bangladesh, speaks in a press briefing in Dhaka yesterday to announce the Bangladesh Investment Summit to be held in Singapore on December 4. K Mahmood Sattar, managing director of the City Bank, was also present.
A daylong event dedicated to Bangladesh will take place in Singapore next month to convey the country's success stories and potential to foreign investors.
The conference, known as Bangladesh Investment Summit, is tipped to be an important platform for Bangladesh's businesses and policymakers to market the country -- as it will be attended by more than 200 potential investors from across the world.
FinanceAsia and AsianInvestor, both published by Haymarket Financial Media Group, will host the summit at the Marina Bay Sands Convention Centre in the city-state on December 4.
Asset owners, private banks, asset managers, investment banks and other financial institutions will also take part in the summit, which will address all issues pertaining to investing on the continent.
The summit will showcase the vast opportunities available in Bangladesh, Jim McCabe, chief executive officer of Standard Chartered Bangladesh, told reporters in Dhaka yesterday.
"The potential of Bangladesh is real. We see a huge potential in the country. There is also a plenty of scope to engage in investment in the country," he said.
The summit, sponsored by Standard Chartered Bank, the City Bank Ltd and Deutsche Bank, will help leading Bangladeshi businesses access foreign capital to expand their businesses, he said.
McCabe said prestigious speakers from government, leading Bangladeshi corporate world, financial institutions and Asian investors, would lend their expertise on driving inward investment to Bangladesh.
Topics to be covered include access routes for investment, Bangladesh's strategic potential, success stories of inward investment and discussions on how to stimulate exports and improve the country's infrastructure.
In a statement circulated at the press briefing, Jonathan Hirst, publisher of FinanceAsia and AsianInvestor, said although the profile of Bangladesh as an investment destination is gaining momentum, a large part of it remains an untold story.
"The summit represents a significant step in the right direction, which we hope will go some way in helping to attract investment into the country,” Hirst said.
The event, the first-of-its-kind for Bangladesh, represents an opportunity for international investors to learn and share ideas on unlocking capital to grow business, increasing exports in existing and new industries and developing key infrastructure projects, he said.
McCabe said Bangladesh has demonstrated rapid progress since independence and has been rightly identified as one of the “next 11 economies”.
"We need to showcase the investment opportunities that Bangladesh offers to the world."
The experienced banker said although it could not be said immediately how much the summit would help Bangladesh attract in investment, but the event would offer fantastic networking opportunity for the people who want to expand their footprint.
Mahmood Sattar, managing director and chief executive officer of City Bank, said investors are looking for new markets and opportunities as growth in the western world, including the US and EU, have come to a standstill due to the ongoing crisis.
"Historically it could not have been a more appropriate time than this for Bangladesh to assert its potential abroad to attract foreign investors. The same is true from the investors, as Bangladesh offers vast opportunities for foreign funds and others."
He said Bangladesh has to be sold well outside because its achievements and what it can offer to the world.
Both McCabe and Sattar said time is right for the summit as investors with funds would decide in December where to put their money next year and the year beyond. The networking will translate into follow-up meetings and visits.
The Daily Star and the Financial Express are the media partners of the event.
News: The Daily Star/Bangladesh/23-Nov-12