The 83rd meeting of the executive committee of the board of directors of Standard Bank Ltd. was held in the city recently. Harun Rashid Chowdhury, chairman of the executive committee of Standard Bank Ltd presided over the meeting. Kamal Mostafa Chowdhury, Muhammad Nurul Islam, Ferozur Rahman. S.A.M. Hossain, Mohammed Abdul Aziz, Harun or Rashid, members of the committee of Standard Bank Ltd attended the meeting.
Among others, SA Farooqui, managing director, Md. Nazmus Salehin, additional managing director and AFM Nizamul Islam Chowdhury, board secretary were also present in the meeting .

The EC took various important decisions regarding the bank's investment policy in the field of trade, commerce and industries and approved proposals received from different branches in respect of financing of working capital for industries and other export, import and commercial trading businesses.

News: The News Today/Bangladesh/16 Feb 2011

Finance Minister AMA Muhith yesterday condemned the activities of the merchant banks in the share market and said that they have no moral rights to go for forced selling.

“The country presently has no law to restrict them for doing so, although, I dislike forced selling by the merchant banks the most,” the minister said adding: “They have no moral rights for such activities.”

He was speaking to the reporters after a meeting with the communication and bridge division at the Finance Division conference room yesterday.

Muhith said he will sit with the merchant banks on Friday to discuss the issue. He also said the concept of the merchant bank is new for us and we are learning from this new kind of banking. “I think their equity must be increased and I will also make a guideline for them,” he added.

He also said greed sometimes goes beyond limit when it comes to profit making. ‘The regulatory bodies are there to control this kinds of greed,” he added.

Commenting on recent price correction in the share market, Muhith said it has experienced enough corrections, and it is going to be stable. The crazy upward trend is also not right, he opined adding: “Increase in share price index by 500 points in a day is also an act of craziness”.

The Finance Minister said that decision on offloading shares of the state-owned enterprises (SoEs) will be taken in March this year. Offloading of shares of two companies –Meghna Petroleum and Jamuna Oil Company-scheduled for February 22 will remain suspended, he added.

Replying to a query, Muhith said he has temporarily suspended the offloading of shares of the SoEs because of the media report and the comments by so-called experts.

“I have suspended the decision of offloading the shares, but not cancelled the move ... it is only stopped for the moment,” he said. As soon as I think stability returns in the market I will do it”, he added.

On Monday, the SEC announced the suspension of the decision on offloading shares of 21 SoEs considering the latest market situation.

Muhith informed that they would enact a law in parliament to bring the institutional investors under obligations so that they properly act in the share market. “We could only request them, but many of them do not follow our requests absence of law,” he added.

In reply to another query, he said the government has taken initiatives to force the investors, who made profits in share business to re-invest funds in the market.” We can only pursue, but don’t have the authority to force them, he said. “I hope I will have it in a few months time,” the minister expected.

In a query on whether the Investment Corporation of Bangladesh (ICB) is using taxpayers money to buy shares, Muhith replied in the negative.

As part of its initiatives to improve the share market situation, the government has provided Tk 2 billion to ICB for buying shares.

News: daily Sun/ Bangladesh/ Feb-16-2011

Bangladesh Bank (BB) Governor Dr Atiur Rahman said SME sector can play a vital role in reducing income discrimination bet-ween urban and rural people as well as establishing a gender-balanced society.

While inaugurating a two-day SME Financing Fair here in the port city on Tuesday the BB governor also emphasised on women empowerment through SME sector to accelerate economic growth and overall development of the country.

In this regard the BB governor said under Refinance Scheme introduced to help flourish SME sector, the Bangladesh Bank has been providing small and medium entrepreneurs (SMEs) with SME loan at low interest rate (10 percent) and women entrepreneurs are allocated 15 percent of the SME fund of the scheme.

SME Foundation in association with Bangladesh Bank (BB) organised the SME financing fair at Institution of Engineers Bangladesh (IEB), Chittagong premises.

Thirty-two banks and non-banking financial organi-sations are participating at the fair organised to help remove the “financing problem” considered as the main impediment to development and flourishing of SME sector.

The fair is the first of a series of seven such events SME Foundation is organising in all the seven divisional towns in the country this year.

BB Governor Atiur in his speech further informed that following BB order for region based cluster development depending on raw materials available in a locality the banks and non-banking financial organisations are providing SME Loans in Jamalpur, Moulovibazar and Jassor for handicrafts, in Khagrachari and Rangamati for Boutique and in Serajgang for handloom.

SME Foundation Managing Director and Chief Executive Officer Sayed Rezwanul Kabir made a welcome address at the inaugural ceremony presided over by SME Foundation Chairperson Aftab-ul-Islam.

Bangladesh Bank, Chitta-gong General Manager Mohammad Naushad Ali Chowdhury, SME and BB Special Program Department Director Sukamol Shingha Chowdhury, BRAC Bank Limited Managing Director Sayed Mahabubur Rahaman and Channel I Managing Director of Channel Shaeikh Seraz attended the inaugural ceremony among others.

Later, loan sanction letters and dummy cheques for Tk 41.9 million of SME loan were handed over to the SME entrepreneurs by the chief guest on behalf of participating banks and financial institutions.

News: daily Sun/ Bangladesh/ Feb-16-2011

Bangladesh Bank (BB) and all scheduled banks will remain closed on February 16 on the occasion of holy Eid-e-Miladunnabi and February 21 on the occasion of Shaheed Day and International Mother Language Day, a press release said here on Monday.

News: The Independent /Bangladesh/15 Feb 2011

Bangladesh Bank has instructed the scheduled banks to charge 12 percent interest rate on credit for importing edible oil, sugar, pulse, spice, onion, date, fruits, chick pea and pea. The circular comes following reports of violation by some banks of the central bank order, in May last year instructed the banks to charge 12 percent rates on importing the essential commodities.
Bangladesh Bank in another circular has allowed rice millers to adjust their revolving cash credit or overdraft against ‘pledge’ or hypothecation’ within 45 days of obtaining the credit. Earlier, the adjustment period was 30 days.

News: The Independent /Bangladesh/15 Feb 2011