People make transactions at the ATM machines outside bank branches in central Athens on Thursday. Police say that gangs who may have once eyed ‘hard targets’, - like the banks themselves, or jewelers - are now going after homes of ordinary people, where there is far less risk and often large stashes of cash freshly withdrawn from savings accounts.

LONDON: Greek savers may be gripped by a “great fear that could develop into panic” in the words of President Karolos Papoulias, but many Greeks shifted their money to safer havens in Britain, Switzerland, Germany and Nordic countries long ago.

Worries about a run on Greek banks have rattled Athens this week, after savers withdrew at least 700 million euros on Monday alone, according to minutes of Papoulias’s comments to political leaders posted on the presidency’s website.

It is not only Greeks who are worried about their savings. Data shows depositors have also taken flight from banks in Belgium, France and Italy. And on Thursday, Spain’s Bankia was reported to have seen more than 1 billion euros drained by its customers in the past week.

Greeks are afraid they could be hit by rapid devaluation if the country leaves the European single currency, while customers at Bankia have been rattled by the government’s takeover of the recently floated bank on May 9 and growing uncertainty about the final cost of Spain’s banking reforms.

In Greece, sources at two banks told Reuters that withdrawals on Tuesday had taken place at about the same rate as on Monday.

“The entire Greek banking system is in danger: the banks are now facing the worst of all outcomes, deposit flight,” said Arnaud Poutier, deputy CEO of IG Markets France.

That flight started at least two years ago, as the debt crisis grew more serious.

Greece’s banks have lost 72 billion euros in deposits since the start of 2010, or about 30 percent, according to data compiled by Thomson Reuters. Five of Greece’s top banks saw 37 billion euros taken out last year, including 12 billion from EFG Eurobank and 8-9 billion apiece at National Bank of Greece, Piraeus and Alpha Bank.

In February, Evangelos Venizelos, finance minister at the time, said only 16 billion euros had gone abroad, with a third of that going to Britain.

Savers have shifted to property, gold and other banks, or stashed it privately.

In Greece, this slow-speed run on deposits has not caused panic. But that could quickly change if there is a sudden loss of confidence in the banks.

Savers lost faith in Britain’s Northern Rock overnight in September 2008, queueing for hours in the days that followed to take out their cash, despite a guarantee safeguarding most deposits. The British government ended up nationalizing the bank.

“It (Greek withdrawals) is not a huge number in percentage terms, but it is still a very worrying story. But deposit flight has been going on for two years. What we are seeing in the euro zone is a slow-motion bank run,” said Michael Riddell, fund manager at M&G International Sovereign Bond Fund.

Deposits shifted around Europe dramatically last year, analysis of data from more than 120 listed European banks show.

Two Belgian banks, bailed out Dexia and restructured KBC saw their deposits fall by 120 billion euros. The bulk of the change resulted from the Belgian state’s nationalization of Dexia’s Belgian banking business, but retail customers pulled out 7 billion euros from Dexia around the time of its break-up in October 2011.

KBC also sold a banking subsidiary, Centea, leading to reduced deposits, but the majority of its shortfall came from withdrawals by US institutions of money market funds.

The Worldscope data includes the value of money held by the bank or financial company on behalf of its customers, including demand, savings, money market deposits, negotiable debt securities - certificates of deposit, along with foreign office and deposit accounts. Securities sold to customers under repurchase agreements are excluded.

Based on these criteria, some 184 billion euros was taken from France’s biggest listed banks, including around 33 billion from Credit Agricole and 82 billion euros from BNP Paribas.

The reduction in deposits at BNP Paribas was largely due to the withdrawal of US money market funds. The bank actually experienced a 15 billion euro increase in retail deposits within its European domestic network during the period, driven by growth in its two biggest markets, France and Belgium.

Credit Agricole’s own figures show total customer deposits rose by 2.3 billion euros over the same period. The bank does not give an overall figure for European retail deposits.

French banks were hit last year by their heavy exposure to Greece and concerns about their liquidity that forced them to accelerate plans to shrink.

Worries the euro zone crisis would spread also saw about 30 billion euros in deposits leave Italian banks, although inflows to BBVA helped limit the net outflow from Spain.

The Daily Sun/ Bangladesh/ 27-May-2012

The banks - SCBs, PCBs and FCBs - have cumulatively achieved 94 per cent of their special agricultural loan disbursement target in the first ten and a half months of the current fiscal year (2011-12).

According to the Bangladesh Bank (BB) statistics, from July 1, 2011 to May 10, 2012 the banks disbursed a total of Tk 731.43 million as special agricultural credit at 4.0 per cent interest, which is 94.22 per cent of their yearly target of Tk 776.30 million.

Of the distributed amount, Tk 11.59 million were disbursed for cultivation of pulses, Tk 55.72 for oil seeds, Tk 578.49 million for spices, and Tk 85.62 million for maize cultivation.

The state-owned commercial banks (SCBs) - Sonali Bank, Janata Bank, Agrani Bank, Rupali Bank, Bangladesh Krishi Bank (BKB) and Rajshahi Krishi Unnayan Bank (RAKUB), private commercial banks (PCBs) and foreign commercial bank (FCBs) gave the loans to the farmers.

According to the BB statistics, Sonali Bank disbursed 110.94 per cent, Janata Bank 108.70 per cent, Agrani Bank 104.63 per cent, and RAKUB 120.30 per cent of their respective targets of Tk 120 million, Tk 130 million, Tk 123.80 million, and Tk 40 million.

Besides, BKB gave 83.38 per cent, Rupali Bank 29.66 per cent, PCBs 75.49 per cent, and FCBs 66.67 per cent of their respective targets. 

The government had earlier re-fixed interest rate at 4.0 per cent from the previous rate of 2.0 per cent on special agricultural credit to be disbursed for cultivation of pulses, oil seeds, spices and maize in the current fiscal.

The government gives a 6.0 per cent interest rate subsidy to the banks, so that they get 10 per cent in total when they disburse loan to farmers at 4.0 per cent rate.

According to the Department of Agricultural Extension (DAE), Bangladesh imports about 50 per cent of its total consumption of spices. The loan is being given to discourage import of the items and reduce annual import payment of nearly Tk 25 billion in this regard.

The farmers are gradually becoming more and more interested in cultivating spicy crops, availing the easy-term credit facility. The BB officials expressed optimism that spice production in the country would increase further following various initiatives of the government. 

Earlier, a substantial amount of money, allocated to be disbursed as special agri-loan, remained idle with the banks, though these special loan programmes were launched about one decade ago. 

Presently, due to various steps taken by the BB, loan is being disbursed at a large scale among the farmers every fiscal, the BB officials added.

 Financial Exxpress/ Bangladesh/ 26-May-2012

Finance Minister AMA Muhith and Bangladesh Bank Governor Dr Atiur Rahman, among other dignitaries, pose for photograph with winners of HSBC Export Excellence Awards 2011 at a city hotel Friday.

The Hong Kong and Shanghai Banking Corporation (HSBC) Bangladesh awarded six exporters Friday in recognition of their contribution to promoting Bangladeshi goods abroad.

The exporters were awarded with the 'Exporter of the Year' trophy, under five different categories, for their contribution and leadership in promoting the 'Made in Bangladesh' mark throughout the world.

Prothom Alo, The Daily Star, KPMG and Bangladesh Brand Forum were the HSBC's strategic partners in this initiative.
Zaber and Zubair Fabrics Limited, a home textile products manufacturer, won the Exporter of the Year award under the category of RMG and Textile with annual export turnover of US$50 million or more.

Woven garments and textile fabrics manufacturer Urmi Group won the award under the category of RMG and Textile with annual export turnover less than US$50 million.

Qualitex Group, a terry towel products manufacturer, bagged the award under the category of Enterprises in the Export Processing Zones (EPZ) of Bangladesh.

PRAN Group, an agro-based processed food manufacturer, and Janata Jute Mills Limited, a jute-based yarn and fabrics manufacturer, jointly won under the category of exporter in the traditional and emerging sectors with annual export turnover of US$3 million or more.

The final winner of the Exporter of the Year is Bay Footwear Limited, a leather footwear manufacturer, under the category of small and medium enterprises with annual export turnover less than US$3 million.

Finance Minister Abul Maal Abdul Muhith Friday handed over the awards to the businessmen at the HSBC Export Excellence Awards 2011 in a city hotel.

Abul Maal Abdul Muhith in his speech as the chief guest said the country's export earning might not be as much as it was in the previous year due to various local and international factors.

"But there is no reason to be nervous for this, as there are much possibilities to overcome this situation soon," he said.

A M A Muhith, however, said diversification of products is very slow and export destinations are very limited.
"Leather, shipbuilding, information technology, toys etc could be added to the export basket to bring diversity," he added.

Speaking as the special guest of the programme, Bangladesh Bank Governor Dr. Atiur Rahman said over the past decades the country's exporters have established a solid credential in the global trade arena, specifically as leading players in apparels and textiles sectors, through skillful use of the quota advantage.

"We see dynamic enthusiasm and thrust for growth in other export-oriented sectors as well, with local exporters making successful inroads with newer goods and services into newer markets."

The BB Governor said with the HSBC's extensive knowledge of the regions of the world they are well placed to help our exporters locate new export prospects and investment partners from abroad.

"They can also encourage and help our exporters adopt internationally practiced standards in corporate governance and financial disclosures, and guide them towards securing credit ratings high enough to enable accessing debt and equity capital on favourable terms from international markets," he added.

Noel P Quin, HSBC Group General Manager and Head of Commercial Banking Asia Pacific, said HSBC bank will expand its services in Bangladesh in the coming years.

Congratulating the winners, Andrew Tilke, Chief Executive Officer of HSBC Bangladesh, said: "I congratulate the winners for their achievements and also for the important role they play in Bangladesh's development and prosperity. As the world's leading international bank, the HSBC is proud to be a partner in this journey of growth."

Commenting on the export potential of Bangladesh, Md Mahbub-ur Rahman, Head of Commercial Banking of HSBC Bangladesh, said: "With its global presence, international connectivity and world-class trade solutions, the HSBC is passionately committed to helping local exporters unlock a world of potentials."

Expressing his feeling after winning the award Md Nurul Islam, Managing Director of Zaber and Zubair Group, said his company ensured quality in manufacturing products, delivered hard work, and shipped products to the buyers timely.
PRAN Group Managing Director Major General (retd) Amjad Khan Chhowdhury said PRAN has achieved a phenomenal growth during last three years.

Each year, five Bangladeshi exporters are awarded with the 'Exporter of the Year' trophy in five categories. This year is the third year of giving the awards.

Through a sophisticated process of adjudication by an illustrious panel of jury members, 
Winning organisations are selected for the award not only on the basis of their annual contribution to national export, but also on the basis of diversity, responsibility, sustainability and governance strengths of their respective businesses.

 Financial Exxpress/ Bangladesh/ 26-May-2012

Credit flow to women entrepreneurs has become low, due to non-cooperation of bank officials. A recent report, conducted by the SME & Special Programmes Department of Bangladesh Bank (BB), has revealed that a number of bank officials are reluctant to receive credit proposals from women entrepreneurs.

According to central bank guidelines, based on individual guarantee, Banks are directed to approve loans up to Tk. 25 lakh, for women entrepreneurs. With collateral, a women entrepreneur can obtain a maximum of Tk. 50 lakh credit for small enterprises. But, the report stated that banks usually approve such amounts in rare cases.

“In reality, women entrepreneurs are not getting proper support from a section of bank officials, before and after the disbursement of loans,” the report stated.   During inspection, BB inspectors were told that Banks are not getting enough proposals from women entrepreneurs.

The report has identified lack of communication and coordination between banks and entrepreneurial women as the real problem.Statistics provided by the SME and Special Service Department showed that Bank loans to women entrepreneurs, under the SME category, has increased by only 1 per cent in the first quarter of 2012, compared to the previous year.From January to March, all banks have disbursed Tk. 646.59 crore in loans, among 4,481 women entrepreneurs, across the country.

The amount is 5 per cent of the total SME loans disbursed by Banks during the same period. The target for SME loan disbursement in 2012 was set at Tk. 59,012 crore, of which, 15 per cent had been reserved for women-led enterprises.In 2011, 16,996 women entrepreneurs had received Tk. 2048.5 crore as loans, which was 4 per cent of the total amount disbursed under the SME category by banks. In 2010, about 13,831 women entrepreneurs had obtained Tk. 1804.92 crore in loans.

The BB report mentioned that the central Bank has initiated new approaches to increase disbursement of loans to women entrepreneurs and issued directives to Banks in this connection. New approaches include provisions for making women entrepreneurs aware about relevant documents,  processing a loan proposal through organising seminars and workshops, one-to-one meetings or group discussions at Bank branches and proper counseling for sustainable growth of business.

Sukumol Sinha Chowdhury, general manager of the SME and Special Service Department, said the initiatives are aimed at building linkage between women entrepreneurs and Bank officials.“Banks can contribute to the national goal of women empowerment, by creating more space for women entrepreneurs. We’re trying to achieve the goal. I hope that banks would come forward to resolve the financial needs of women entrepreneurs,” Chowdhury added.

At present, the central Bank focuses on promoting Hamala (Camel’s Sit Cover) producers in Rangamati, and Monipuri Weavers in Sylhet. The BB official said that all scheduled and foreign banks were asked by the central bank to provide financial support to women entrepreneurs.With the help of some banks, the central Bank has recently completed seminars in Rangamati and Sylhet to literate women entrepreneurs about SME financing.

The BB official said the central Bank has introduced ‘dedicated help desk’ for women entrepreneurs to lodge complaint regarding financial services by Banks.

The Independent/ Bangladesh/ 26-May-2012

UNITED NATIONS: Syria said Thursday it can’t pay its U.N. dues because American banks won’t allow the country to open an account and urged the United States to find a quick solution.

Syria’s U.N. Ambas- sador Bashar Ja’afari told the General Assembly’s budget committee that his country, which is a founding member of the United Nations, has paid its dues in full and on time since 1945.

He said that at the beginning of 2011, a U.S. bank closed the accounts of a number of U.N. missions, including Syria’s. After much difficulty, he said, Syria opened an account at another bank in Washington, but that was unexpectedly closed and the government has not been able to find a new bank.

The Daily Sun/ Bangladesh/ 26-May-2012