The Banking Division of finance ministry may place the Demutualisation Act before the cabinet today for final approval, as part of the government’s effort to ensure transparency and accountability on the country’s stock market.

The finance ministry’s wing will also seek cabinet’s final nod on the Securities and Exchange (SEC) (Amendment) Bill, 2012 and reforms to the SEC Ordinance, 1969.

The reform measures aim to empower the SEC to form tribunals to deal with capital market related cases and to strengthen the regulatory framework for the stock market, in line with the conditions the International Monetary Fund (IMF) has attached to the second installment of a $987 million credit offer for Bangladesh.

“On behalf of the Bank and Financial Institution Division, I will place the Demutualisation Act and amendments the of SEC Act and ordinance on Tuesday,” Md Shafiqur Rahman Patwary, secretary of the Bank and Financial Institution Division, told reporters Monday emerging from a meeting with Finance Minister AMA Muhith at the finance ministry.

The IMF earlier approved $987 million extended credit facility (ECF) for Bangladesh on some conditions including the demutualisation of Dhaka and Chittagong stock exchanges and amending the Bank Companies Act.

The objectives of the ECF scheme include restoring macroeconomic stability, strengthening the external position and achieving more inclusive growth.

However, the Bank companies Act might not be placed before cabinet Tuesday due to some difficulties, the Banking Division Secretary said.

The finance minister will discuss the progress in meeting the conditions set by IMF during his visit to Japan, Shafiqur Rahman Patwary informed.

Muhith is scheduled to leave for Tokyo Tuesday to join the annual meetings of the World Bank and the IMF.

In the second tranche, IMF is supposed to release $141 million under the ECF scheme.

A Bangladesh Bank official earlier said the government has already met all but four conditions which will also be “addressed shortly”. “The government could be able to convince IMF about the matter,” he hoped.

The official also expressed his confidence that the second installment of ECF will be available once the IMF approves the loan at its board meeting to be held on 29 this month.

News: The Daily Sun/Bangladesh/9th-Oct-12

Industries Minister Dilip Barua, speaks at the inaugural ceremony of 3rd D-8 industries ministers conference at a hotel in Dhaka Monday.

Industries Minister Dilip Barua Monday said the country’s GDP growth can reach the double-digit mark through providing required financial support and modern technological input in the SME sector.

Saying that the country’s banking sector aims to promote the large enterprises neglecting the small ones, Barua emphasised the need for changing the mindset of the financial institutes considering the endless potentials and viability of the small and medium enterprises.

He was addressing a seminar styled “SMEs-Catalyst of D-8 Economic development: Bangladesh Perspective and scope of cooperation” organised by Dhaka Chamber of Commerce and Industry (DCCI), Business Initiative Leading Development (BUILD) and Trust Bank at the Ruposhi Bangla hotel in city.

Barua said the D-8 (Developing 8) is a forum for creating opportunity in technology transfer and investment among the D-8 member countries.

Bangladesh is a SME-based country, SME is the backbone of its economy and industry, the minister added.

DCCI President Asif Ibrahim presided over the seminar while Professor Widi Agoes Pratikto, secretary general of D-8 Secretariat, Shah Alam Sarwar, managing director and CEO of Trust Bank Ltd were present as special guests.

Dr. Toufic Ahmad Choudhury, Director General, Bangladesh Institute of Bank Management (BIBM), Mrs Ferdaus Ara Begum, CEO, BUILD and T.I.M. Rawshan Zadeed, Head of SME, Trust Bank Ltd, presented keynote papers at the seminar.

While delivering his speech, the DCCI President said Small and Medium Enterprises are the lifeline of Bangladesh’s economy that has been contributing about 25 percent of GDP to the value addition in manufacturing sector.

He said SMEs are the largest employers and the largest contributors to GDP that contribute to over 55 percent of GDP and over 65 percent of total employment in higher income countries.

SMEs and informal enterprises, account for over 60 percent of GDP and over 70 percent of total employment in lower income countries, while they contribute about 70 percent of GDP and 95 percent of total employment in middle-income countries, he added.

Asif mentioned that SMEs are the major growing force behind the fastest growing economy of China, in terms of contribution to the national GDP (accounting for 40 percent), scale of assets, diversification of products, and the creation of employment.

Similarly, the role of SMEs is well acknowledged in other countries such as Japan, Korea, and all other industrialised economies in terms of creating employment, reducing poverty and increasing the welfare of the society. 98 percent of all businesses in Australia are SMEs and they provide private sector jobs for nearly 4.8 million Australians, he added.

News: The Daily Sun/Bangladesh/9th-Oct-12

Md Siddiqur Rahman has recently been appointed as deputy managing director of Sonali Bank Ltd, the Bank said in a statement yesterday.

He was the general manager of Bangladesh Krishi Bank prior to this appointment.

Rahman started his career at Agrani Bank Ltd as a senior officer in 1977. He also served Rajshahi Krishi Unnayan Bank and Janata Bank as deputy managing director.

News: The Daily Star/Bangladesh/9th-Oct-12

The ensuing commercial banks have begun seeking final green signal of the central bank to start their operations as they fulfil requirements in line with the letter of intent (LoI).

On April 17, Bangladesh Bank (BB) issued the LoI with putting 29 conditions that the banks should comply with to get the licenses. One of the major conditions suggests that the entrepreneurs should start their banking operation in six months after getting approval of the central bank.

After complying LoI, so far two proposed commercial banks - South Bangla Agriculture and Commerce Bank Limited and NRB Commercial Bank Limited - have submitted their paper works and documents required to obtain licences from the BB.

“We're preparing to begin operations in November,” an official close to the new NRB Bank, said.

October 16 has been set for the newly approved nine commercial banks for submitting necessary documents of LoI compliance to the BB.

The BB will issue licences to the banks after scrutinising their documents, sources said.

“All proposed banks will have to apply to the central bank within the deadline seeking licences for beginning their businesses,” said a BB official.

The banks, however, would be allowed to seek time extension if they cannot meet the deadline, he said.
Only one bank has so far applied for extending the deadline for submission of documents.

The central bank has been scrutinising the documents before issuing licences to the new banks.  As part of the scrutiny, the BB officials will check tax-related issues with the National Board of Revenue (NBR) in case of local sponsors.

Sponsors of the proposed non-resident Bangladeshi (NRB) banks will deposit their paid-up capital in foreign currency, the central banker said.

The paid-up capital of a new bank will be no less than Tk 4.0 billion, the central bank said in its guidelines for setting up new commercial banks.

If an individual or any member of his or her family is or was a loan defaulter with a bank or financial institution anytime during the past five years, he or she will not be eligible to apply as a sponsor of any proposed bank.

An individual awaiting verdict of any indisposed lawsuit in any court or tribunal against his/her loan default status will not be eligible to apply as a sponsor, the guidelines added.

The central bank on April 4 approved three NRB (Non-resident Bangladeshi) banks.

The banks are sponsored by expatriate Bangladeshi in the United States, Iqbal Ahmed Chowdhury and Farasath Ali and Nizam Chowdhury who is residing in the United Kingdom.

The central bank on April 8 also approved six new banks, sponsored by local entrepreneurs.

The banks are Union Bank, Madhumati Bank, Farmers Bank, Meghna Bank, Midland Bank and South Bangla Agriculture and Commerce Bank.  The prime sponsors of the six banks are former president HM Ershad (Union Bank), Fazle Noor Taposh (Modhumati Bank), Dr Mohiuddin Khan Alamgir (Farmers' Bank), SM Amjad Hossain (South Bangla Agriculture and Commerce Bank), Ashequr Rahman (Meghna Bank) and Moniruzzaman Khan Khandker (Midland Bank).

News: The Daily Independent/Bangladesh/8th-Oct-12

Abdul Awal Patwary, Chairman of Social Islami Bank Limited, inaugurates the branch at Demra in Dhaka recently.

Social Islami Bank Limited (SIBL) opened its 79th branch at Demra in Dhaka recently.

Abdul Awal Patwary, Chairman of the bank, formally inaugurated the branch as the chief guest, said a press release.

Muhammed Ali, Managing Director of SIBL, presided over the programme while Md Mohashin Miah, Deputy Managing Director, Managers of city branches, local elites and customer of the bank attended the function.

News: The Daily Sun/Bangladesh/8th-Oct-12