The banks opened total 18 EHs for mobilising remittances. In this backdrop, the Bangladesh Bank (BB) issued warning to the parent banks to cancel licenses if the EHs could not reach to at least break-even point by a three-year timeframe by accelerating their drive for mobilising remittances.

The BB source said the EHs could not perform well in the UK because of persistent economic recession there that implies increase of unemployment rate and a fall in overall individual income. “As a result, EHs could not cover operational costs from their incomes.

An EH is supposed to run its operation by earning commission by channeling remittances,” said a high official of the central bank Tuesday. “But we found poor monitoring by banks,” he said adding, For this we adviced respective managements to shut down the losing EHs if they could not expedite endeavors for mobilising higher remittances for the country,” said the official, seeking anonymity.

According to the source, only two EHs in the UK are performing well. Of them, one house belongs to the state-owned Sonali Bank and another to NCC Bank Ltd. By obtaining approval from the central bank, the commercial banks have opened EHs in the UK, a priority choice of Bangladeshis who are leaving country for employment, emigration and education as a destination.

According to BB source, EHs namely NBL Money Transfer (UK) Ltd, IFIC Money Transfer (UK) Ltd, Prime Exchange Company, EXIM Exchange Company, Southeast Financial Services, Standard Exchange Company, Pubali Exchange Company, Premier Exchange Company, Jamuna Exchange Company, Bank Asia Exchange Company, Brac Sajjan Exchange, AB Exchanger, MTB Exchange, Mercantile Exchange House, EBL Exchange (UK) Ltd and Dhaka Exchange Company Ltd are running in losses.

Sources said the central bank is pursuing commercial banks for last couple of years to accelerate drives for mobilising remittances from Bangladeshi nationals living in different destinations (abroad) by providing hassle-free services at their doorsteps. In last couple of years, the BB authority issued licenses for 65 EHs in different countries including the USA, the UK, Malaysia, Singapore, Canada, Italy, Greece and Maldives.

Only 26 are in commercial operations while others are yet to starts functioning, according to BB sources. Besides, some 37 local banks have over 1000 drawing arrangements (contact with different EHs of various foreign banks in different countries) in 23 countries in order to provide facility to the Bangladeshi expatriates to remit money into the country at lower cost.

News: The Daily Sun/Bangladesh/07-Nov-12