Country’s call money market stays stable ahead of Eid ul Azha and Durga Puja as commercial banks have taken short term measures and that Bangladesh Bank supplied liquid cash in to the market. “We have taken steps through our treasury bill purchase and other means to keep cash flow normal in the market,” said Mohammad Humayn Kabir, deputy director, debt management department of Bangladesh Bank.

The highest call money rate hit 12.50 per cent for non bank institutions on Tuesday. Most deals were settled in between 6 to 12.50 percent. However, weighted call money rates for the banks was 10.18 percent while the previous Tuesday it was 8.72 per cent, said the BB official.

Total turnover in the call money market was Tk 6,453.50 crore on Tuesday while the previous Tuesday it was Tk. 6,909 crore.

State owned commercial banks borrowed the highest amount of money from the call money market. On Tuesday, Agrani Bank’s borrowing stood at Tk. 1,043 crore while Sonali Bank’s Tk 926 crore.

Foreign commercial banks borrowed an amount of Tk 121 crore, while specialised banks 336 crore, private commercial banks Tk 6,408 crore and the non bank institutions borrowed Tk 783 crore respectively.

The banks have also taken steps to keep call money market stable ahead of two top festivals including Durga Puja. The short-term borrowings normally increase before the Eid as demand for cash rises. This year a substantial amount of fresh fund was injected by the BB in to the market, said Shymal Kumar Sadhu, executive of ONE Bank Ltd.

Besides, the central bank is also providing a substantial amount of Tk 200 million in fresh notes to avoid the crisis of funds during religious celebrations.

"The central bank has used different monetary instruments including re-selling agreement (repo) to keep call money market stable before the Eid and Durga Puja," said Md. Abdur Rahim, general manager of Bangladesh Bank, Motijheel Branch.

Moreover, BB has provided fresh fund by purchasing the US dollars from the commercial banks directly to keep the exchange rate of the Bangladesh Taka stable against the green back, Rahim also explained.

BB on Tuesday has provided liquidity supports for banks worth of Tk 10,897.32 crore.  Of the amount, it injected an amount of Tk. 1,863 crore against special repo and Tk 9,034.32 crore against Treasury bonds and bills.

News: The Daily Independent/Bangladesh/18th-Oct-12

AB Bank organised a five-day training programme on ‘international trade, foreign exchange and information technology’ for a visiting delegation of Myanma Economic Bank of Myanmar.

M Wahidul Haque, Chairman of AB Bank inaugurated the training programme which covered important topics on International Trade, Foreign Exchange and Information Technology.

Than Lwin Oo, General Manager, Ms. Tin Nwe Yee and San Aye, Assistant General Managers and Ms. The Su Hlaing, Assistant Manager of Myanma Economic Bank, Myanmar attended the training programme.

News: The Daily Sun/Bangladesh/18th-Oct-12

Md. Shirajul Islam Mollah, Chairman of Prime Bank Limited inaugurates the 124th branch of the bank in Brahmanbaria on Monday. M. Reazul Karim Additional Managing Director and Kanti Kumar Saha, Deputy Managing Director of the bank were also present.

The 124th branch of Prime Bank Limited was opened in Brahmanbaria on Monday.

Md. Shirajul Islam Mollah, Chairman of the bank inaugurated the branch as chief guest, said a press release.

M. Reazul Karim, Additional Managing Director presided over the ceremony, while Kanti Kumar Saha, Deputy Managing Director of the bank delivered the welcome address.

The chairman said Prime Bank has been delivering Islamic banking services along with conventional banking since inception of its operations.

He told the bank has been donating 4 percent of its profits to the Prime Bank Foundation as part of its corporate social responsibilities in the fields of education, health and sports.

News: The Daily Sun/Bangladesh/18th-Oct-12

Bangladesh Bank (BB) has asked the management of all commercial banks operating in the country to check validity and authenticity of IRC (Import Registration Certificate) submitted by businesses before accepting L/Cs .

The central bank authority Tuesday issued a circular in this regard.

“Banks must ensure validity and authenticity of IRC to prevent fraudulence,” reads the circular.

From now on, banks will need to send IRCs to the office of the Comptroller of Import and Export Directorate (CIED) for clearance before accepting L/Cs, according to the circular.

The central bank sources said all head offices, principal offices and authorised dealers of banks were served this circular separately.

Earlier, the office of the CIED had issued a public notice seeking cooperation of commercial banks and their authorised dealers to check IRCs to prevent fraudulence activities.

News: The Daily Sun/Bangladesh/18th-Oct-12

Financially excluded people, specially the farmers, have started getting benefits from ‘Taka 10’ bank accounts which are not only helping them to get government’s financial assistance easily but also creating saving tendency among them.

“Farmers are now depositing their money in banks and one of the major achievements of it is that such practice is gradually creating saving habit among them,” said economist Abul Barakat.

Besides, such accounts help farmers save money and time as they are now receiving government’s financial assistance such as diesel subsidy through banking cannel without harassment and paying any kickback, Barakat, President of Bangladesh Economic Association (BEA), told BSS.

Saving accounts of more than one crore financially excluded people have so far been opened in different state-owned-commercial banks (SCBs) and specialized banks after Bangladesh Bank (BB) ordered banks to allow farmers to open saving accounts at Tk 10 in 2010.

More than 96 lakh farmers have opened savings accounts in SCBs and specialized banks till September 2012. The central bank took this decision as part of its “people-centric” approach to provide economically deprived people with financial services to ensure overall economic development. “Opening of 96 lakh new accounts means these people were out of banking network and bringing them under the umbrella of banking transactions is certainly a great success,” said Abul Barakat who is also the Chairman of Janata Bank.

According to BB, during the period, accounts of around seven lakh people who receive allowances under government’s social safety net programme and around one lakh accounts of freedom fighters have been opened.

Economists and bankers said transparency has been ensured in distribution of various agricultural assistances by the government, including diesel subsidy, among the farmers.

News: The Daily Sun/Bangladesh/18th-Oct-12