The role of the Bangladesh Bank (BB) has become highly challenging in the changed circumstances after the global economic-meltdown, its' governor Dr Atiur Rahman said on Sunday. He said a persistent unstability in the global economy has created additional pressure on the central banks to determine respective role and Bangladesh bank is not beyond the stress.  
"Challenges right now are inflation, decline in remittance inflow, increase of import cost, loss in the exchange rate (Bangladeshi currency against US dollars) and shortfall in the balance of payment," said Dr Rahman said while inaugurating the training programme of the 2nd batch of apprentice bankers at Bangladesh Bank Training Academy (BBTA) at Mirpur in the city.
He, however, said that the country's economy escaped from a big blow due to Bangladesh bank's firm position to control money circulation through regulatory and supervisory intervention, despite the persistent unstability in the post-financial-recession era globally. He said today's bankers should obtain IT (Information Technology) skills and appropriate stress testing capacity to help central bank policy makers to initiate necessary regulatory and supervisory steps timely to prevent looming troubles in the banking sector. 
He said efficiency and pleasant personality for every bank official is indispensable to provide dynamic banking to the rural people including farmers, professionals, small and medium entrepreneurs and the poor people.
He said the central bank is in progress to introduce fully a high-tech and automated and client-friendly banking system and the fresh officers should be highly responsible to comply in this regard.
He said the central bank is trying to remove all the barriers which are mainly responsible for delay in disbursing loans to farmers, share croppers, entrepreneurs of small and medium trades, especially those linked to agro processing.        
"Central bankers have to play integrated role in this regard with social commitment, integrity and efficiency," he said.
Central bank's deputy governor Murshid Kuli Khan attended the inaugural ceremony as special guest.  Ataur Rahman, executive director of BB who is in charge of the BBTA, has chaired.

  News: The Independent/Bangladesh/ July-04-2011

Abdullah Mamun

BRAC Bank aims to adopt all global standards in terms of services and product delivery. At the same time the bank wants to be a flag bearer of the country.

"We all are working hard to fulfill the ambition. We want to be a bank for all Bangladeshis,” said Syed Mahbubur Rahman, the chief executive officer of the bank.

“To bring more convenience to the banking services, we customise the products. We don't want to be more supply driven than demand driven. We want to make the bank more automated,” he said.

BRAC Bank has created a different dimension in the banking sector of Bangladesh. From the very early days its main focus has been on SME (small and medium enterprise) banking, when the commercial banks and the microfinance institutions were looking for the top-tier customers and the people at the bottom of the pyramid. But there was no room for the middle-income people. BRAC Bank appeared in the scene with its new vision of SME banking, the CEO said.

Rahman, who has been working for the bank for the last three years, said: “Though we have similar services, our loan portfolio is above 50 percent for SMEs, while the total loan is more than Tk 8,000 crore."

The average loan figure is Tk 5 lakh to Tk 6 lakh. And more than 90 percent of these loans are collateral-free.

The outreach is much higher and distribution network is wider; almost 40 percent branches are in the rural areas.

In the last 10 years, BRAC Bank provided loans to almost 3.75 lakh people, and the total disbursement is almost Tk 200 crore. Direct employment is more than a million while indirect job creation should be even higher. It has a very widespread distribution network with a field force of 16,000 to 18,000 people, according to the MD.

Isn't SME banking a risky business? The MD said yes. “At the same time, it is less risky too,” he said, adding that small borrowers are more committed than the big shots.

But due to natural calamity, sometimes the bank faces problems too.

“We are focusing on value-based banking,” said Rahman.

He also talked about three Ps -- planet, people and profit.

If one can protect the planet and people then definitely profit will flow through.

The bank is also a member of the Global Alliance for Banking on Values, an independent network of banks using finance to deliver sustainable development for unserved people, communities and the environment. There are 13 banks within the alliance.

BRAC Bank management believes in sustainability in the long run, he said.

"We should not do anything that affects our planet or people," he said.

The bank has introduced solar panels in its 22 branches, out of a total 421. It plans to bring all the branches under solar energy.

There is a desk set up to deal with renewable energy issues such as financing. The bank has introduced "planet cards" to promote green investment.

“We are very robust in terms of using technology. You can transfer your money from home, if you have internet connectivity. The service will be more flexible when mobile financial services will be introduced,” he said.

“We want to take part in the financial inclusion of people. Mobile banking is one of the means to reach the goal. About 80 percent of the people are still out of banking services. And mobile banking can help us reach the objective,” Rahman said.

He said the bank is going to launch mobile financing service styled 'bKash.'

"It's almost done. We have signed agreement with Robi Axiata, and are in talks with the other operators. By the third week of July the service will be launched," Rahman said.

Now the bank has 12 lakh clients and its aim is to take mobile banking services to seven crore users in the next 10 years.

M-banking would create a money saving culture in the country, the CEO said.

The bank has already introduced e-commerce for the people who have debit or credit cards. It is effective for the purposes such as ticket booking or hotel booking, but there are still a lot of problems for online shopping.

The bank is also connected with 13 local banks by a program, Omnibus, a network of 700 points.

Also, as many as 11 banks can do transactions in between by a program, Eldorado.

Rahman also talked about the overall economic situation of the country. He said the falling remittance growth, rising commodity prices in international market, machinery and fuel import for rental power plants, and higher import are impacting foreign exchange reserve, he said.

The government has already planned to borrow $1 billion from the International Monetary Fund in the face of a tight forex reserve.

"But I think we need to find innovative ways to overcome the crisis. Instead of borrowing -- for example -- the government can consider encouraging the NRBs (non-resident Bangladeshis) to send money through regular, legal channels."

If the government provides Tk 1 incentive for per dollar remittance sent home by the NRBs, and if that results into a mere 10 percent rise in remittance flow through the legal channel, the country would have $12 billion from existing $11 billion a year, he points out.

[email protected]                                                                                                                                 News: The Daily Star/Bangladesh/ July-04-2011

Md Motior Rahman has recently been re-appointed as managing director of Jamuna Bank Ltd.

Rahman joined the bank in 2005 as deputy managing director and was appointed as managing director in 2009.

Before joining Jamuna Bank, he was the senior executive vice president and head of credit of Prime Bank.

A postgraduate in accounting from Dhaka University, he started his banking career with Pubali Bank in 1973 as a senior officer.

                                                                                                                                       News: The Daily Star/Bangladesh/ July-04-2011

Premier Bank Limited has opened its new branch at Ashkona in the city recently.

Abu Haniff Khan, additional managing director of the bank, inaugurated the new branch during a function at its premises on Thursday, said a press release.

Syed Nowsher Ali, senior vice-president (SVP) and head of GSD of the bank, local businessmen and elites were also present on the occasion.

While addressing the function, Abu Haniff Khan urged the residents of Ashkona to be entertained with the Premier Bank’s modern products and services.

                                                                                                                                        News: Daily Sun/Bangladesh/ July-04-2011

The Central Depository Bangladesh Limited (CDBL) has discarded 488,000 beneficiary owners (BO) accounts as the account holders did not pay the annual maintenance fees within the stipulated time.

The deadline for paying maintenance fees expired on June 30 this year as per the direction of the Securities and Exchange Commission (SEC).

An account holder has to pay a fee of Tk 500 per annum as maintenance fee for a single account.

The CDBL closed the accounts which does not hold any share and suspended which contain shares as they failed to pay fees in due time as per the instruction from the SEC, an official of CDBL said.

The suspended accounts will be active again once the account holders pay the fees.

The CDBL on March 18 sent letters to the brokers of twin bourses asking them to collect fees in advanced by June 30, being directed by the market regulator.

More than 3.1 million BO accounts are active under Dhaka and Chittagong stock exchanges as on Sunday, after renewal by June 30 this year, according to CDBL.

A total of 194,000 new BO account has been opened from January June 30 this year.

                                                                                                                                        News: Daily Sun/Bangladesh/ July-04-2011