Md. Abdul Jalil, MP, Chairman of Mercantile Bank, speaks at a seminar on “Banking and Banker’s Ethics” at Bangabandhu International Conference Center (BICC) in Dhaka recently.

Mercantile Bank Limited organised a seminar on “Banking and Banker’s Ethics” for its officials at Bangabandhu International Conference Center (BICC) in Dhaka recently.

Md. Abdul Jalil, MP, Chairman of Mercantile Bank inaugurated the seminar as chief guest, said a press release Monday.

Monindra Kumar Nath, Managing Director and CEO of the Bank presided over the function.

News: The Daily Sun/Bangladesh/16th-Oct-12

M. Mukhter Hossain, AMD of Shahjalal Islami Bank Ltd. and Golam Hafiz Ahmed, AMD of NCC Bank Ltd exchange documents after signing an agreement at the SJIBL head office on Monday.

Shahjalal Islami Bank Limited (SJIBL) and National Credit and Commerce Bank Limited (NCCB) signed a strategic business agreement for Xpress Money remittance service in the SJIBL head office on Monday.

Under the agreement, Shahjalal Islami Bank Limited will able to offer Express Money services from its outlets around the country.

M. Mukhter Hossain, Additional Managing Director of Shahjalal Islami Bank and Golam Hafiz Ahmed, Additional Managing Director of NCC Bank signed the agreement on behalf of their respective banks.

Md. Abdur Rahman Sarker, MD & CEO, Md. Abdul Jabber Chowdhury, DMD and M. Akther Hossain, EVP & Head of International Division of Shahjalal Islami Bank and Mohammed Nurul Amin, MD & CEO, ABM Jashim Uddin Ahmed, VP of NCC Bank Limited were also present on the occasion.

News: The Daily Sun/Bangladesh/16th-Oct-12

The central bank yesterday asked all commercial banks -- including the scam-ridden Sonali Bank -- to give acceptance to genuine inland bill purchases (IBPs) for the sake of the country's exports.

The instruction came at a meeting with the leaders of the apparel exporting and bankers' bodies at the Bangladesh Bank (BB) headquarters. When an exporter receives an order, he/she opens a 'back-to-back' letter of credit (LC) account at a bank to procure the raw materials to fulfil the order.

The exporter then sells the 'back-to-back' LC on to banks at a discounted rate, which is called the IBP.

SK Sur Chowdhury, deputy governor of the BB, told journalists that the commercial banks cannot delay the purchase of genuine bills under any condition.

“Some commercial banks showed reluctance towards the purchase of acceptance bills after the loan scam of Hall-Mark Group. But, there is no reason to be panicky as every indicator of the banking system is giving positive signs.”

The central bank is yet to bring out a fresh circular, though, regarding the development, added Chowdhury.

The BB deputy governor further said Sonali Bank, too, will start releasing the stalled funds against the IBPs soon.

“Banks will pay special attention when it comes to the acceptance of the garment sector's IBP so that businesses do not face any crisis before the Eid festival,” said Nurul Amin, chairman of Association of Bankers Bangladesh, a platform of chief executives of commercial banks.

“The environment of mistrust that has been created in the bankers and clients relationship due to the Hall-Mark loan scam is not right,” Amin said, while pressing Sonali Bank to accept the valid IBPs.

Shafiul Islam Mohiuddin, the president of Bangladesh Garment Manufacturers and Exporters Association, said the garment exporters are facing difficulties as some commercial banks are showing reluctance in purchasing IBPs.

Mohammad Hatem, the acting president of Bangladesh Knitwear Manufacturers and Exporters Association, and Jahangir Alamin, the president of Bangladesh Textile Mills Association, were also present.

News: The Daily Star/Bangladesh/16th-Oct-12

Iftekhar Ahmed Tipu, Chairman of IFAD Autos Limited, and Farman R Chowdhury, Managing Director of ONE Bank Limited seen at an agreement signing ceremony at IFAD’s head office in Dhaka recently.

News: The Daily Sun/Bangladesh/15th-Oct-12

Bangladesh Bank Governor Dr. Atiur Rahman said price volatility in global commodity markets remain a major vulnerability for Developing Asia pacific (DAP) countries as sudden sharp food price spikes increased risk of hunger, particularly for the urban poor.

Food grain growers, on contrary, suffer for steep price fall as supplies improve, he said adding, commodity price stability beneficial for both producers and consumers can be usefully supported by maintaining modest publicly-owned buffer stocks as cushion.

Low income DAP countries while building up such food grain buffer stocks may usefully be assisted by budget support financing from the International Monetary Fund (IMF).

Atiur, presently in Tokyo as a member of the Bangladesh delegation to the IMF-World Bank Annual Meetings 2012, said this at a special event for Frontier and Developing Asia and Pacific countries on October 14, 2012.

Atiur said Bangladesh and other low income DAP countries need continuing support in growth and poverty eradication efforts.

He was exchanging views on continuing vulnerabilities to global shocks and the role of IMF in supporting the region’s growth momentum.

The event was chaired by the IMF Managing Director Christine Lagarde and was participated by senior government and central bank officials and IMF senior management team.

Expressing concerns over the global economic slowdown, Lagarde stressed on greater surveillance for risk mitigation to overcome the situation.

In his speech, Dr Atiur said IMF’s global policy surveillance needs to remain proactive in countering these trends, to protect and further widen openness of advanced economy markets to goods and services from the DAP.

Countries in South Asia and the broader DAP region have in recent past concluded several new agreements for freer bilateral and regional trade, he quoted saying, “The DAP region can benefit from IMF support in activating trade under these initiatives.”

“Despite low levels of policy interest rates in and outside the region, access to trade financing has remained relatively more constrained and expensive following the global crisis,” he added.

In recent years, speculative position taking by financial institutions in commodity futures markets has tended to exacerbate price volatility, Atiur said adding, IMF’s global policy surveillance may proactively pursue adoption of global discipline barring speculative position taking in commodity futures by financial institutions or other entities with no stake in supply chains of the commodities concerned.

Upholding domestic demand driven component of output growth in low income member economies would require IMF financing support agreements to avoid imposing conditions hurting well-being of the poor, instead keeping the brunt of adjustment burden on the better off.

To this end, IMF assistance programmes may also include financing for member country’s own targeted initiatives supporting output activities of farm and non- farm small businesses including start ups, stressed the BB chief.

Low income DAP countries also need IMF support in putting in place sustainable, affordable social safety nets for the poor; in appropriately structured retirement and pension savings schemes.

IMF can increase its presence in local field offices for first-hand appraisal of the needs and concerns of DAP countries facing shocks from turbulences in the global economy, Atiur recommended.

The representatives are very effective and generally so are the TA support. But still compared to other partners, the IMF is very HQ centric in staffing and this could be rebalanced, he suggested.

Dr Atiur also attended the SAARC Finance meeting on the same day which was participated by finance secretaries and central bank governors of all South Asian nations.

Caption

Bangladesh Bank Governor Dr. Atiur Rahman seen with IMF Managing Director Christine Lagarde in the IMF-World Bank Annual Meetings 2012 in Tokyo, Japan.

News: The Daily Sun/Bangladesh/15th-Oct-12