Bangladesh Bank Governor Dr Atiur Rahman yesterday stressed the need for developing insurance products, particularly health insurance and crop insurance, for the poor and urged all concerned to work together so that poor households can insure themselves against health shocks and crop losses.

“The biggest gap in microfinance is in developing insurance products for the poor, particularly health insurance and crop insurance,” he said while addressing a seminar on ‘Towards a Public Policy on Microfinance in Bangladesh.’

“Let us work together- microfinance regulators, program managers, development partners and the private sector so that poor households can insure themselves against the most common type of shocks - health shocks and crop losses - which often cruelly reverses the steady gains that our hard-working country men and women achieve,” the governor added.

The Daily Sun/Bangladesh/ 6th April 2012

The International Monetary Fund (IMF) has sought a report on implementation of the 16 conditions the multilateral lending agency tagged with releasing $1 billion credit to Bangladesh.

The IMF in a letter to Bangladesh has asked to know about the progress report within Monday, sources said.
The progress report was sought just few days before the global lender would place the Extended Credit Facility (ECF) loan proposal of the government to its board meeting on April 11.

“We have already sought every detail on the progress of the implementation of the conditions to concerned government agencies”, a top central bank official said.

He also said the progress in execution of conditionals including price hike of fuel oil would also be place at the board meeting.

The ECF fund will come in six tranches, of which the first $167 million installment will land by the end of current fiscal year if the board approves the proposal next week, finance ministry sources said.

Prime Minister’s energy adviser Tawfiq-E-Elahi Chowdhury told daily sun that the price hike of fuel oil, tagged with the release of the ECF fund, will also be placed at the board meeting of IMF next week.

Energy Division is likely to increase fuel oil prices again before the announcement of next budget in June, he said, adding that the process might begin from next month.

The 16 IMF conditions include containing budget deficit within five per cent of GDP, but a finance ministry report indicated that it may increase to 5.1 percent at the end of current fiscal.

Budget deficit may also widen due to drastic fall in receiving foreign assistance. In the original budget, the deficit was estimated at 5 percent of the GDP.

Meanwhile, different government agencies have already made various strides in implementing the conditions entwined with the IMF loan facilities. The draft value added tax law has already been approved by the cabinet and will be placed in the next session of parliament as a bill to meet the conditions.

Dr AB Mirza Azizul Islam, former adviser to a caretaker government, told daily sun that the ECF fund will help ease the foreign currency crisis of the government.

“We need foreign currency to strengthen local currency taka,” he said adding that the government should not take IMF loan accepting the painful conditions that may go against the interest of the country.

The list of IMF conditions also include demutualisation of Dhaka and Chittagong bourses by December.
The government will also have to introduce a system of automated taxpayer identification number and automatic price adjustments of domestic fuel oils with their international rates.

The Banking Companies Act (amendment) has to be placed in parliament by June to give Bangladesh Bank (BB) sole regulatory authority over the commercial banks, and to reduce the number of bank directors as per the conditions.

The IMF also asked the government to design a new set of regulations on loan classification and loan-loss provisioning by June 2014, following international best practices.

The IMF said a new organisational structure of the National Board of Revenue to support VAT collection has to be approved by the finance minister by September.

It also asked the central bank to issue another order by September to adjust the new amended banking law, setting a ceiling on commercial banks’ shareholdings in the stock market to 25 percent of their individual regulatory capital.

Cut in subsidy, rise in repo rate of Bangladesh Bank, withdrawal of cap on commercial banks’ lending rates, are the other conditions of the global lender.

The IMF’s $1 billion credit, which would be given to Bangladesh in three-year duration, is aimed to help Bangladesh tackle its balance of payments (BoP) problems. The country’s BoP is already under tremendous pressure.

The Daily Sun/Bangladesh/ 6th April 2012

Smiling Sun (Surjer Hashi) hosted the inaugural ceremony of the Smiling Sun online Managemment Information System (MIS) at Rangamati recently. Dutch-Bangla Bank donated 320 Net Books, valued Tk 7.25 million, which will enable all 320 Smiling Sun locations to connect to the Smiling Sun online MIS system. Mr Sayem Ahmed, Chairman of the Executive Committee of the Board of Dutch-Bangla Bank (guest of honour) presented the Net Book to Mr Richard Greene, Mission Director of USAID.

Smiling Sun (Surjer Hashi) hosted the inaugural ceremony of the Smiling Sun online Managemment Information System (MIS) at Rangamati recently.

Dutch-Bangla Bank donated 320 Net Books, valued Tk 7.25 million, which will enable all 320 Smiling Sun locations to connect to the Smiling Sun online MIS system. The MIS system ensures improved management, accountability and transparency using real-time data for the affordable healthcare of the rural masses.

Present at the ceremony were Dipankar Talukder, State Minister, Ministry of Chittagong Hill Tracts Affairs, (chief guest), Dan W. Mozena, US Ambassador to Bangladesh (guest of honour), and Sayem Ahmed, Chairman of the Executive Committee of the Board of Dutch-Bangla Bank (guest of honour).

The US ambassador explained the role that the seemingly 'invisible' online MIS system would deliver real results and play a part in creating a better service for Smiling Sun clinics nationwide. He discussed USAID's continuing role in Bangladesh. He applauded the generous contribution made by DBBL in this specific instance and also in other sectors as well.

Mr. Sayem Ahmed presented the Net Book to Mr. Richard Greene, Mission Director of USAID. The Net Books have been presented to the SSFP for use in 64 districts through a network of 320 rural and urban clinics.

Mr. Sayem Ahmed mentioned in his speech that the role of Smiling Sun for providing affordable healthcare in a sustainable way is unique, genuine and different. He mentioned that with the MIS system, Smiling Sun has set the standard for a nationwide healthcare network.

Mr. Naba Bikram Kishore Tripura, Secretary Chittagong Hill Tracts Affairs, Mr. Sourendra Nath Chokroborty, D.C. Rangamati, Dr. Shuvro Chakma, DPM Tribal Health, DGHS, and Mr. K.S. Tabrez, Managing Director, Dutch-Bangla Bank attended the event and spoke on the occasion as special guests. Mr. Nikhil Kumar Chakma, Chairman, Hill District Council, Rangamati, chaired the event.

Financial Express/Bangladesh/ 5th April 2012

Bangladesh Bank's (BB's) board of directors on Wednesday approved three new banks sponsored by non-resident Bangladeshis (NRBs). "However, the BB board has decided to further evaluate the shortlisted applications for conventional banks. Today's meeting is being 'adjourned', and the board will sit again on Sunday," BB deputy governor SK Sur Chowdhury told reporters after the meeting.

Governor Dr Atiur Rahman chaired the meeting at the central bank's board room.
License for new conventional banks in the private sector has remained a much-discussed topic for the last few months, after the government pronouncement that it would allow more players in the over-saturated banking sector.  

Currently, 47 banks are operating across the country.
Earlier, BB had received nine applications by NRBs to set up banks for expatriate Bangladeshis. Chowdhury said that the BB board has decided to provide licenses to three of these banks, with conditions that these would contribute to the country's economy by boosting up remittance inflows, getting higher overseas trade and commerce and ensuring more FDI (Foreign Direct Investment).

"One of the three NRB banks will be named NRB Commercial Bank Ltd. Coincidentally, proposed names for the other two banks happened to be the same, namely, NRB Bank Ltd. The board has advised that one of these two banks should change its name," Chowdhury added.

According to BB sources, Iqbal Ahmed (UK), Nizam Chowdhury and Farashat Ali (USA), respectively, are sponsors of the three banks.

Although, aspirants for conventional banks hoped that something would come out for them as well, the BB board could not reach consensus in this regard due to absence of some members, said an inside source.
Chowdhury, however, said that the meeting had some other agendas, and that the board members did not have much time to discuss the issue.

The central bank had shortlisted 16 applications from a total of 37 such applications. Applicants, who had been shortlisted,  include influential lawmakers, politicians and business personalities linked to the ruling alliance, said BB sources.

According to sources, top five banks on the shorted list are -- Union Bank Ltd of former president HM Ershad, Modhumati Bank Ltd of Fazle Noor Taposh MP, The Farmers Bank Ltd of Dr Mohiuddin Khan Alamgir, South Bangla Agriculture and Commerce Bank of SM Amjad Hossain, and Midland Bank Ltd of Moniruzzaman Khandker.

Other aspirants include Mirza Azam MP (The People's Bank), Harun-Ur-Rashid (Destiny Bank), Mahbuba Kabir (Self Employment Bank), Enamul Haque Chowdhury (Chartered Bank), Abdul Matlub Ahmed (Katak Bangla Bank), Abul Kashem (People's Islami Bank), MA Hashem (Federal Bank) and Engineer Enamul Haque (Korea-Bangla Bank).

The Independent /Bangladesh/ 5th April 2012

M Wahidul Haque, chairman of AB Bank, and M Fazlur Rahman, president and managing director, attend a press meet to celebrate the Bank's 30 years of commercial operations, at Ruposhi Bangla Hotel in Dhaka yesterday.

AB Bank yesterday celebrated its 30 years of commercial operation at a programme at Ruposhi Bangla Hotel in the capital.

"Taking into consideration the world economy, AB will step forward through creating newer opportunities for itself with its unique features and stature," said M Wahidul Haque, chairman of the Bank.

The Bank organised different programmes, including painting and essay competitions for the younger members of the families of its employees.

The Bank's President and Managing Director M Fazlur Rahman, Deputy Managing Directors Shamim A Chaudhury, Bardul H Khan, Ahsan Afzal also took part in the event.

The Daily Star/Bangladesh/ 5th April 2012