DHAKA, Dec 25: Bangladesh Bank (BB) will adopt a more flexible monetary policy next year to cope up with the increasing inflation, food prices and boost rural resources in both farm and non-farm sectors. The new monetary policy, scheduled for mid-January, will put the target for taming inflation, accelerating inclusive growth, reducing poverty and bringing a holistic change in the rural economy, BB Governor Dr Atiur Rahman said on Saturday.
Rahman was addressing a programme of Southeast Bank in the city to distribute scholarships among meritorious students under the CSR (corporate social responsibility) scheme of the bank.
Speaking about the ensuing monetary policy, he said the policy would be more flexible to accelerate inclusive growth, faster poverty reduction and spur rural economy.
The BB is now also pursuing a flexible monetary policy while it is moderately regulating the rate of interest, money supply and banks’ involvement in non-core financial sector.
The central bank during this outgoing year capped interest rate to boost lending to industries, agriculture and other productive sectors when it discouraged banks to finance non- productive areas like real-estate and stock market.
Rahman did not detail the next policy, but made it clear that the central bank would give more attention to bring a holistic change in the rural economy, meaning rural farm and non- farm sectors would get more and cheaper loans.
The central bank in its current monetary policy has focused on inclusion of the people who have not getting institutional services for a long time.
The initiatives include offering farmers bank account for Taka 10, disbursing loan to sharecroppers and introducing mobile banking.
The governor said the new policy would focus on how banks can brought more rural people under institutional financial services.
A BB official said the governor is meeting the country’s leading economists tomorrow (Sunday) to discuss the monetary policy.
The governor already held similar meeting with former governors, business leaders and bankers to make the monetary policy more conducive to domestic economy, the official said.     BSS

Source: The Independent

Rejaul Karim Byron

The default loans recovery remains poor, despite drives from the central bank and state-owned banks.

Bangladesh Bank data shows only 12 percent achievement of the Tk 388 crore bad debt recovery target from top 20 defaulters in 2010. During January-September, state-commercial banks could recover Tk 47crore.

The target was to recover Tk 1,352 crore from other default borrowers, but Tk 597 crore or 44 percent was recovered in the first nine months of the current calendar year.

Till September 2010, such bad loans stood at around Tk 12,080 crore.

Among the state banks, Sonali Bank could retrieve 1.14 percent, Janata 19.79 percent, Agrani 26.35 percent and Rupali 3.19 percent from the top 20 defaulters.

Realising the bad loans is among the specific targets Bangladesh Bank has set for the state banks.

The central bank has been putting pressure for years on these banks to recover fast the bad loans.

“There is no significant improvement yet in bad loan recovery, especially from the top defaulters,” said a central bank high official.

State bank officials attribute such slow recovery to a sloth in the disposal of cases filed against the defaulters. Big defaulters' writ petitions lying with higher court have also stuck up the whole process of realisation of the classified loans, they pointed out.

“The influential borrowers file writ petitions with the High Court and get the loan recovery process stalled,” Sonali's Chairman Qazi Baharul Islam told The Daily Star.

When the bank goes for acquiring a property mortgaged against the loans, the initiative turns futile just because of legal barriers, Islam said.

The biggest state bank chief also pointed to policy flaws. The relaxation in loan repayment the government allows for the sick industrial units in the apparel and jute sectors is also a hindrance to the bad loans recovery, he said.

The defaulters often apply for loan rescheduling without making any downpayment, he said.

Islam also pointed out that banks were helped in re-capitalisation to face global recession fallout, but the government had not extended to the banks any concessions with regard to loan recovery or its sanction.

According to Bangladesh Bank statistics, till September 30, a total of 21,029 cases relating to recovery of loans remained pending with the courts. Borrowers owe Tk 11,810 crore to the state banks.

Meanwhile, an IMF mission that visited Bangladesh recently has urged the government to initiate a second time reform programme to improve the state banks' overall performances. Recovering bad loans and meeting the banks' capital deficit are under the purview of such a reform scheme.

However, the government has formed a bank reform commission headed by the Sonali Bank chairman.

A finance ministry official said following the commission's recommendations they will start the reform programme.

Source:The Daily Star

Islami bank Bangladesh Ltd yesterday signed an agreement with Nigeria based Jaiz Bank for technical cooperation between the two banks.

Abdul Mannan, managing director, Shawkat Ali, executive vice president of Islami bank signed the deal with the presence of CEO of the Jayez Bank Md. Mustafa Bintube and the director Falalu Bilu, said a press release.

Source: Daily Sun

IFIC Bank has promoted Mati-ul Hasan and Zaitun Sayef to deputy managing director recently, the bank said in a statement.

Hasan started his career with IFIC Bank in 1984 as probationary officer. He was the senior executive vice president and relationship manager of the bank prior to the promotion.

Sayef was the senior vice president and head of training and research division of the bank earlier. She started her career as senior officer with Agrani Bank in 1983.

Source: The Daily Star

The opening match between Sonali Bank and Dinajpur district of Dhaka Bank Bijoy Dibosh Hockey Tournament -2010 took place at Moulana Bhasani Hockey Stadium in the city yesterday.

Brig Gen M M Salehin, NDC, Psc, Director General of Bangladesh Krira Shikha Protisthan (BKSP) was present at the occasion as chief guest, said a press release.

Sonali Bank defeated Dinajpur by 9-0 goals at the opening match. Russel Mahamud of Sonali Bank team scored hattrick.

Khondker Fazle Rashid, managing director of Dhaka Bank Ltd was also present as special guest.

Khondker Jamil Uddin, secretary general of the Hockey Federation, was also present during the match.

Source: Daily Sun