Dewan Anwarul Latif has been appointed as Deputy Managing Director of Premier Bank Limited effective from February 01, 2011, said a press release.

Prior to taking up the new assignment, Latif was Senior Executive Vice President and Head of Corporate of the bank. He was also manager (in-charge) of the bank’s Banani branch.

Latif worked on varied assignments during his tenure in the bank, including developing and monitoring marketing strategies for both the assets and liabilities to meet overall target for the area that he had been assigned for.

News: Daily Sun /Bangladesh/15 Feb 2011

The Centre for Policy Dialogue yesterday warned the government about risks of borrowing

$1 billion from the IMF, saying the conditionality-based loans would increase the costs of doing business and limit scope for strategic support to domestic industries.

The think-tank said the borrowing from the IMF (International Monetary Fund) would limit the government's fiscal flexibility and may lead to a contractionary monetary policy.

"We have to maintain policy flexibility and policy autonomy to attain faster growth," said CPD Executive Director Mustafizur Rahman at a dialogue on emerging challenges in Bangladesh on growth, inflation and monetary policy.

CPD organised the programme at the Cirdap auditorium in Dhaka. Chairman of the research organisation Rehman Sobhan chaired the discussion.

The CPD observation came at a time when the government is finalising a $1 billion credit deal with IMF which tagged a number of conditions to the loans.

The conditions include phasing-out of bank lending rate ceilings, further liberalisation of tariff level, pursuing a monetary tightening stance and putting in place new VAT and income tax laws.

The think-tank said some of the conditions such as raising CNG and furnace oil prices, establishment of a framework to monitor losses of state-owned enterprises are in line with the necessary reform agendas.

But citing the United Nation's World Economic Situation and Prospects 2011 report, Rahman said the likely consequences of the IMF conditionalities contradict the UN recommendations.

CPD also observed that Bangladesh economy is going through a turning point and some tensions are emerging.

These include the rising inflation, volatility in the stockmarket and the banks' risky exposure to the market, instability in the foreign exchange market due to a rise in import payments, and a slowdown in remittance inflows.

"If we cannot address these at this moment, it may put the economy into trouble," said the CPD researcher.

Economists also said Bangladesh might be able to attain its growth target. But it might not remain free from soaring prices of foods.

"Inflation is up. But we must not forget that there is a strong domestic demand," said Executive Director of Policy Research Institute Ahsan Mansur.

Mansur said the stockmarket is in a correction mood now. "Let's not bother about it for too long," he said.

He warned about the risk of a drop in remittance inflows. "We have to stabilise our exchange market," said Mansur who was also critical of excessive credit expansion.

Salehuddin Ahmed, a former BB governor, said danger is coming from the forex market.

He said any financial crisis usually preceded by bubble. "The central bank should be cautious about credit bubble."

Ahmed blamed the BB for raising the CRR (cash reserve requirement), saying that the timing was wrong that caused a plunge in the stockmarket.

But BB Deputy Governor Ziaul Hasan Siddiqui said the central bank increased the CRR after it observed a rising trend in inflation last year.

World Bank Lead Economist in Bangladesh Sanjay Kathuria said volatility in inflation creates uncertainty in investment and employment generation.

He said investment remains below the overall savings rate in Bangladesh. But it should be reversed, he said.

News: The Daily Star /Bangladesh/14 Feb 2011

Bangladesh Bank Governor Dr Atiur Rahman said the banking sector of the country has set an example in maintaining its financial health even during the global economic meltdown when banks in the developed countries suffered a severe liquidity crisis.

The banks in the country don’t have liquidity crisis even now, although few may be in such crisis due to aggressive banking, which he said should be mended immediately.

Talking about inflation, the central bank governor suggested that bank loans in unproductive private sectors be checked to prevent wastage and control inflation.

Atiur was speaking at the launching ceremony of the automation of 11 branches of Agrani Bank at a hotel in Dhaka yesterday.

Agrani Bank, a state-owned commercial bank (SCB), has already computerised around half of its 867 branches and also opened 97 ATM (automated teller machine) booths in different cities of the country as part of its digitising banking service, the governor told the function.

“I am happy to learn that Agrani Bank is doing well in digitising its activities,” he said.

The BB boss said works were underway to bring the head office, circle offices, corporate and authorised dealer (AD) branch including regional branches of the bank under online facilities soon.

He also lauded the bank saying its capital, deposit, branches and manpower hold a good position now.

He said the bank would soon introduce facilities like SMS banking, mobile banking, internet banking and tele-banking.

He urged the bank authorities to give importance on core banking solution like that of other SCBs to compete with the private commercial banks.

BB governor also made a call to all banks of the country to expedite their efforts in providing loans for SME and agriculture sectors as well as initiate green banking programmes.

Agrani Bank Chairman Dr Khondoker Bazlul Haque, its Managing Director Syed Abdul Hamid, among others, were also present on the occasion.

News: Daily Sun /Bangladesh/14 Feb 2011

Eastern Bank Ltd yesterday launched a limited edition of ten Visa prepaid cards to mark the upcoming ICC Cricket World Cup.

EBL Managing Director and CEO Ali Reza Iftekhar launched the special prepaid cards during a press briefing at a city hotel, said a press release.

Coloured after the ten test playing nations –the card is first of its kind in Bangladesh and all over the world, the news release added.

Anyone can buy a prepaid visa card from selected EBL branches and use it at more than ten thousand shops, restaurants and ATMs countrywide.

The card will be sold at zero balance and the buyer can load any amount up to Tk 50,000.

Muklesur Rahman, deputy managing director (DMD) for Consumer Banking of EBL, DMD of Corporate Banking M. Fakhrul Alam, Head of Cards Nazeem A. Choudhury, Head of Brand & Marketing Ziaul Karim, Head of Cards Operations Md. Saifuzzaman and Head of Cards Business Md. Khorshed Anowar were present at the press briefing.

News: Daily Sun /Bangladesh/14 Feb 2011

Finance Minister AMA Muhith Friday defended the appointment of political persons as members of the board of directors of the state-owned commercial banks (SCBs), justifying their necessity in achieving the goals of the government. He was speaking to the newsmen after a meeting with the directors and top officials of three SCBs - Rupali, Janata and Basic banks. "We've appointed politically conscious people as bank directors to achieve the goals of a political government", the minister said.

The remarks came amid widespread criticism over appointing 'non-professional' bank directors for SCBs. Pointing to the agenda of the meeting, he said, "This meeting was just the continuation of the meeting of January 27". The minister met with the directors and top officials of two SCBs - Sonali and Agrani banks - at that time. "We've reminded the directors that their first duty is to protect the interest of depositors", the minister said, adding that development of the nation and economy comes to the second position as the responsibility of the directors.

"We talked about the issues of banks' performances and functions of boards today", Muhith said. Pointing to the report published about an SCB in a Bengali daily, the minister said, "That report is 'immature' and 'out of ignorance'." Governor of Bangladesh Bank Atiur Rahman, members of board of directors, chairmen, and managing directors of Rupali, Janata and Basic banks and top officials of the central bank were present at the meeting.

News: The Financial Express/Bangladesh/12 Feb 2011