SWIFT to introduce tool to spot fraudulent inter-bank messages

Posted by BankInfo on Thu, Apr 13 2017 11:15 am

Reuters, London

Interbank messaging service SWIFT, which is used to transfer trillions of dollars between banks every day, will launch a new tool to spot fraudulent messages, seeking to restore trust in the system after millions of dollars were stolen in cyber raids.

Belgium-based SWIFT said on Wednesday that it will offer clients a service that will be able to learn a user bank's messaging patterns so that it can spot if a payment is being made to an unusual counterparty or for an unusual amount.

Last year $81 million was stolen from Bangladesh's central bank after thieves hacked into its SWIFT system and sent instructions to the Federal Reserve Bank of New York to pay money from Bangladesh Bank's account to parties in Asia.

SWIFT was criticized last year by some users and industry players for failing to beef up security on its system even as the risk of cyber attacks increased and the network expanded to include smaller institutions with more lax security procedures.

Though SWIFT launched a range of new security measures and services in September, the latest product -- due to be introduced early next year -- will "red-flag", or put on hold, payment instructions that exceed limits set by clients or are deemed anomalous by the system's learning software.

“The new payment controls service is a direct response to our community's request for additional services to complement and strengthen existing fraud controls," SWIFT Chairman Yawar Shah said.

Luc Meurant, SWIFT's head of financial crime compliance services, told Reuters that the service would be targeted initially at institutions and central banks with small messaging volumes because they might not be able to afford to develop such detection tools themselves.

He said the service could cost small users as little as 10,000 euros a year, though prices have yet to be finalised.

news:daily star/13-apr-2017

Africa can be better source of cotton

Posted by BankInfo on Mon, Apr 10 2017 11:29 am

Bangladesh is currently the second largest cotton importer in the world sourcing mostly from India and China

African countries can be a major source of cotton used as raw materials in the Bangladesh’s garment industry, said Finance Minister AMA Muhith.


He said the African cotton is “of good quality and easy for import.”

Bangladesh is currently the second largest cotton importer in the world sourcing mostly from India and China.

“The cotton that we import from India and China is not original. It is very difficult to get original cottong from these countries. African countries can be good alternative for cotton import,” finance minister said.

He was speaking at the inaugural session of the African-Asian Cotton B2B Meeting at The Westin Hotel, Dhaka on Sunday.

International Islamic Trade Financing Corporation (ITFC) of the Islamic Development Bank (IDB) Group organised the meeting.

ITFC is financing and supervising a cotton development project in West Africa, titled “Cotton Development and Partnership Programme.”

The meeting aimed to improve business to business relations between African and Bangladeshi importers.

“Our economy is driven by garment industry which will continue to dominate the economy for the next 20 to 25 years,” Muhith said.

“Bangladesh’s garment industry mostly depends on imported cotton for raw materials. If Africa produces more cotton, it will be helpful for Bangladesh,” he said.

African Cotton Association President Baba Berthe, Bangladesh Cotton Association President Mohammad Shahidullah and Bangladesh Textile Mills Association Vice President Mohammad Ali Khokon also spoke at the function.

Mohammad Shahidullah said: “African countries produce high quality cotton. Import of African is also more cost-effective compared to other countries.”

He said: “African cotton industry is purely export-oriented while India and China have their own demands of cotton. As they have their own demands, importing cotton from India and China is sometimes challenging,” he said.

Mohammad Ali Khokon said the cotton import increased to 7.087m bales from 4.876m bales in the last five years with Africa making increasing contribution to the global cotton supply. He said Bangladesh has now a dominant position in cotton for 425 spinning mills.

According to BTMA data, Bangladeshi mills are sourcing cotton from countries like India, the United States and Africa. Currently, Bangladesh sources around 20.88% of its total cotton demand from African countries.

news:dhaka tribune/10-apr-2017

Humaira Azam, Deputy Managing Director of Bank Asia Ltd poses with the participants of a day-long training program on 'Islamic Banking and Salamah Operations' for its 38 officers at its training institute, Tejgaon, Dhaka on Saturday. Head of Training & Vi

Posted by BankInfo on Tue, Feb 09 2016 11:26 am

Humaira Azam, Deputy Managing Director of Bank Asia Ltd poses with the participants of a day-long training program on \'Islamic Banking and Salamah Operations\' for its 38 officers at its training institute, Tejgaon, Dhaka on Saturday. Head of Training &

News:New Nation/9-Feb-2016

Stable banking sector capable of tackling any risk: BB

Posted by BankInfo on Tue, Mar 10 2015 12:10 pm

The country's banking sector is stable and capable of tackling any risk, according to a Bangladesh Bank document, which attributes strong capital adequacy and sufficient liquidity to the banks' strength, reports BSS. Constant internal and external monitoring, upgrading loan classification and provisioning to the global standard and ensuring good governance in the board of directors have also contribute to the higher resilience and the strength of the banking sector, the document said.
According to the BB, the risk-weighted capital adequacy ratio, which is one of the major indicators of the banks' health, stood at 11.35 per cent at the end of December when the amount of reserve capital in banking sector rose to Taka 71 thousand 754 crore. 
"The higher capital adequacy ratio and reserve capital boosted the bank's resilience to risks," BB said.
It said the loan classification and provisioning also upgraded to the international standard, with limiting the time for loan classification and making minimum capital requirement (MCR) mandatory for all banks.
The central bank said the profit before tax and provisioning in the banking sector also rose to Taka 21 thousand 265 crore in 2014 from the previous year's Taka 18 thousand 610 crore.
The document showed that liquidity in banks was Taka 3 thousand 364 crore, which was usual for the country's banking sector, having 56 banks in operations.
"The adequate liquidity helps maintain stability in the call money market where the interest rate remains around 7.0 percent for long," BB said.
The credit growth also marked 13.99 percent rise in 2014 when banks disbursed Taka 5 lakh 28 thousand 755 crore compared to Taka 4 lakh 63 thousand 871 crore only to the individual borrowers, indicating dynamism of economy.
BB said the banks also disbursed loans to export oriented industries from the Export Development Fund (EDF) at only 2.0 percent rate of interest to help accelerate the country's export earnings.

News:The Independent/10-Mar-2015

BB injects more funds into scheme for slum dwellers

Posted by BankInfo on Mon, Sep 08 2014 12:27 pm

The repayment rate under the “Ghore Phera” programme for slum dwellers has been very high, a development which prompted the central bank yesterday to put another Tk 2 crore into the scheme.

Introduced in 1999 by the Krishi Bank with the aim to rehabilitate slum dwellers back to their native villages, the programme has so far seen recovery rates of 87 percent, according to Md Abdus Salam, the bank's managing director.

The loan carries a 6 percent simple interest payable in 10 years in 120 instalments.

So far, 970 individuals have been rehabilitated in their own villages, he said, adding that 30 percent of them later returned to cities in search of employment.

At an agreement-signing programme yesterday at the Bangladesh Bank headquarters, Atiur Rahman, governor of the central bank, said more funds would be made available for the scheme.

Thanks to the fund injection, the guideline of the loan programme has been changed and the ceiling upped, Salam said. Earlier, a person could take a maximum loan of Tk 50,000 but now the ceiling will be raised to Tk 1 lakh.

Other ceilings too have been increased. For example, for house building a person can now take out a maximum loan of Tk 50,000 loan instead of Tk 7,000 as before.

Besides, ceilings of almost all loan programmes aimed at income-generating activities have been doubled, the Krishi Bank MD said.

Krishi Bank has so far disbursed Tk 4 crore loans under the programme, of which Tk 2.50 crore remains outstanding.

News:The Daily Star/8-Sep-2014


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