TOKYO: Asian shares rallied to two-week highs on Thursday, building on strong global gains after the world's six major central banks moved to tame a liquidity crunch for European banks by providing cheaper dollar funding.

Financial spreadbetters expect the leading European benchmark indexes to rise on Thursday, extending a sharp four-session rally on increased risk appetite following the central bank joint action.

The U.S. Federal Reserve, the European Central Bank and the central banks of Canada, Britain, Japan and Switzerland said on Wednesday they would lower the cost of existing dollar swap lines by 50 basis points from December 5, and arrange bilateral swaps to provide liquidity for other currencies.

MSCI's broadest index of Asia Pacific shares outside Japan jumped 4.4 percent to its highest since mid-November, rising above a 25-day moving average, after U.S. stocks soared 4 percent on Wednesday.

Japan's Nikkei also surged well above its 25-day moving average, closing up 1.9 percent.

Chinese shares outperformed, with the Hang Seng Index surging close to 6 percent after Beijing cut the reserve requirement ratio for commercial lenders on Wednesday for the first time in three years, signaling a policy shift as global weakness weighs on China's economy.

"It's clearly a risk-on day given everything that happened overnight," said Su-Lin Ong, senior economist at RBC Capital Markets.

Industrial metals such as copper, zinc and aluminum jumped as funding strains eased, while the policy step by China, a huge commodity importer, lifted commodity currencies. The Australian dollar stood at $1.0255, off an earlier high of $1.0280, having jumped 3 percent on Wednesday.

The euro changed hands at $1.3455 after jumping to a one-week high of $1.3531 on Wednesday while the dollar index slumped to a two-week trough at 77.923. The index stood at 78.35 on Thursday.

"The moves were cheered by markets, as it shows central banks are willing to work together to ease Europe's sovereign debt crisis," said Stan Shamu, strategist at IG Markets.

But some analysts were more cautious, saying the central banks' moves just bought more time for Europe as it battles to contain its worsening debt crisis.

"This just means they expanded emergency measures. The more important point is whether Europe is going to have a bigger bailout fund and that's still up in the air," said Soichiro Monji, chief strategist at Daiwa SB Investments, in Tokyo.

Source: The Daily Sun/ Bangladesh/ 2nd Dec 2011

Trust Bank Limited has opened branch at Kemal Ataturk Avenue at Banani in the city recently.

Maj Gen Abu Belal Muhammad Shafiul Huq, ndc, psc, adjutant general, Bangladesh Army and vice chairman of Trust Bank Limited inaugurated the branch as chief guest, said a press release.

Among others, board of directors, Brig Gen Md Nazrul Hasan, Brig Gen Khan Abu Roushan Mohammad Mostafa Kamal, ndc, psc, Brig Gen Tushar Kanti Chakma, ndc, psc, Begum Rokeya Din, Helal Uddin Ahmed and Brig Gen Md Imamul Huda, psc, managing director and CEO Shah A Sarwar, deputy managing director Ishtiaque Ahmed Chowdhury were present on the occasion.

Source: The Daily Sun/ Bangladesh/ 2nd Dec 2011

First Security Islami Bank Limited (FSIBL) has opened a new branch at Kawran Bazar in the city recently.

A A M Zakaria, managing director of the Bank, formally inaugurated the branch, said a press release.

Source: The Daily Sun/ Bangladesh/ 2nd Dec 2011

The government has decided to pay back a total of $ 7.632 million to the Saudi Bangladesh Industrial and Agricultural Investment Company Limited (Sabinco) to avoid any image crisis.

The amount has been trapped with Eastern Bank Limited (EBL), sources said.

Banking division of finance ministry has also decided that the said amount will be paid back to Sabinco after withdrawal of a court case. Authority of EBL gave its consent to pay back the money to Sabinco, although it has not withdrawn the case yet.

Sources in banking division said a repatriate meeting on September 29 at finance ministry decided that the EBL will pay back that money after withdrawal of case.

Besides the officials of the banking division, the representatives of the Bangladesh Bank, EBL, Sabinco attended the meeting. Banking secretary Shafiqur Rahman Patwari presided over the meeting.

Earlier, Finance Minister AMA Muhith asked the banking division and the Economic Relations Division (ERD) to take necessary steps, so that the fund could immediately be sent, the sources added.

"I have pledged to the Kingdom of Saudi Arabia (KSA) to pay back the Sabinco's money that was mismanaged in the presently-defunct Bank of Credit and Commerce International Ltd (BCCI)," the minister wrote in a directive to the secretaries concerned.

"The money has to be returned," Muhith noted, urging them to take necessary actions in this regard within one month.

The minister visited the KSA on first week of July this year and met several high-ups of the Saudi government, where the issues of sending back Sabinco's money was discussed. The KSA supplied the money as equity capital of the company.

EBL managing director and CEO, Ali Reza Iftekhar told daily sun that Sabinco has not yet withdrawn the case. “We will send back the fund after Sabinco withdraws the case,” he added.

He also said that EBL authority would discus the issue with the finance ministry and Bangladesh Bank and take decision about the matter. “Since the case is still in the court, we can not speak more about the issue,” he added.

The Sabinco is a development financial institution and investment company that was established through joint initiatives of the governments of the KSA and Bangladesh under a protocol signed in 1984.

The company aims at creating assets, developing entrepreneurship and generating employment through promotion of productive enterprises.

It focuses on investment in manufacturing and agro-processing industries, infrastructure projects and utility services in Bangladesh on commercial basis through loans, finances and equity participation.

BB Governor Dr Atiur Rahman at the beginning of the year informed the finance ministry that paying back the funds is very much essential to maintain good relations between the two countries.

BB is also concerned of recovering the fund that was deposited in the BCCI, he added.

The BCCI, closed in July 1991, was later turned into EBL and all the deposits and debts of BCCI were transferred to EBL.

Although the Sabinco’s fund got stuck due to legal complications, the central bank took the initiatives to bring back money.

Source: The Daily Sun/ Bangladesh/ 2nd Dec 2011

Bangladesh Bank has awarded 12 licenses to banks to introduce mobile banking to reach out to rural people, the governor said yesterday.

Two banks have already launched the mobile banking to take the services to the unbanked people, Atiur Rahman said at a seminar on e-payments as part of the e-Asia conference at Bangabandhu International Conference Centre in Dhaka.

The central bank is promoting the bank-led model to roll out mobile banking.

“We are promoting the bank-led model as it will give the customers a lot of confidence,” said Rahman. “Confidence is important in money.”

“It does not mean the telcos will remain out of the orbit. Telcos are partners in the bank-led model,” said Rahman. The governor urged the telecom operators to form partnership with the banks.

Source: The Daily Star/ Bangladesh/ 2nd Dec 2011