One more NBFI gets BB licence

Posted by BankInfo on Thu, Jun 22 2017 10:01 am

The Bangladesh Bank has issued an operating licence to a new non-banking financial institution (NBFI) named Alliance Leasing and Finance Company Limited. The central bank issued the licence under Article 4(1) of the Financial Institution Act 1993, said a circular dated June 20, 2017.

news:financial express/22-jun-2017

Negative remittance inflows may affect future growth

Posted by BankInfo on Thu, Jun 22 2017 09:50 am

Domestic demand buoyant, says BB quarterly report

The current negative growth in remittance inflows might have some adverse effects on domestic demand, the central bank said, thereby possibly affecting country's economic growth.

From the demand side, strong private-sector-credit growth and capital-machinery-import growth indicate buoyant domestic demand, according to the latest quarterly report of the Bangladesh Bank (BB).

Negative remittance inflows may affect future growth"However, the negative growth in remittance inflows (-15.3 per cent) might have some moderating effects on the domestic demand," the central bank said in its latest Bangladesh Bank Quarterly (BBQ) for January-March 2017.

The BB's latest observations came against the backdrop of falling trend in the flow of inward remittances in recent months.

It happened due to a sluggish trend in economic activities in the Middle-Eastern countries along with a rising trend in sending hard-earned money by expatriate Bangladeshis using informal channels, according to the central bank officials.

They also said the overall economic growth may face an adverse impact in future if the existing downward trend of inward remittance continued.

"It may be visible in the next fiscal if the falling trend in inward remittance persists," a BB senior official told the FE Wednesday while explaining possible impacts of the negative growth in inward remittances.

He also said the government as well as the central bank of Bangladesh is now working to revamp the inflow of remittance shortly.

The BBQ also said the country's overall economic activity maintained its momentum during the third quarter (Q3) of the outgoing fiscal year (FY) 2016-17.

The industry sector benefited from domestic demand, with output in the large-and medium-scale industries growing by 10 per cent in the Q3 of FY 17.

The growth in bank credits to trade and commerce sectors (13.3 per cent) and the increase in the Chittagong port cargo volume (9.5 per cent) suggest a solid performance of the service sector.

The recent floods in the northern haor areas of the country had localised impact in the agriculture sector, the BBQ noted.

"Favourable inflation dynamics benefited from declining non-food inflation, while food inflation (12-month average) rose modestly since September 2016," the BB explained in its latest BBQ.

Besides, non-food inflation (point to point) has been on the rise since the beginning of the Q3.

Recent developments increase the probability of higher inflationary pressures over the coming months, the central bank hinted.

However, consumer price index (CPI) inflation on 12-month-average basis declined to 5.4 per cent in March 2017, well below the 5.8 per cent target in the FY17 budget.

Country's banking-sector indicators depict a mixed picture during the period under review.

The BBQ says capital-to-risk-weighted-asset ratio (CRAR) and asset quality (NPLs) in the banking system softened, while the provision-shortfall position of banks against classified loans improved.

The ratio of gross NPL to the total outstanding loans of the banking sector increased from 9.2 per cent at end-December 2016 to 10.5 per cent at end-March2017.

Moreover, the ratio of net NPL to the total outstanding loans of the banking sector rose to 2.9 per cent from 2.3 per cent during the same period.

The CRAR remained largely unchanged at around 10.7 per cent in March 2017.

Despite the deterioration in NPL, provision-shortfall position of the banking sector improved in March 2017 and stood at Tk (-) 52.3 billion from Tk (-) 54.7 billion at the end of December 2016.

The spread of monthly weighted average lending rates and deposit rates in the banking sector remained below 5.0 per cent and the inter-bank money-market rate was stable around 3.6 per cent, reflecting adequate market liquidity.

During the quarter under review, the Bangladesh Taka (BDT) exchange rate against the US dollar depreciated modestly (1.22 per cent), reflecting the market forces.

The BB bought $45 million in January 2017 and sold $ 22 million and $23 million on the foreign-exchange market in February and March 2017 respectively, according to the quarterly report.  

"Real effective exchange rate also depreciated modestly due to the depreciation of nominal exchange rate and falling domestic prices," it noted.

news:financial express/22-jun-2017 

Govt-ADB ink $300m loan deal for railway

Posted by BankInfo on Thu, Jun 22 2017 09:42 am

The Government and the Asian Development Bank (ADB) Wednesday signed agreements for US$300 million in loans to help build a dual-gauge railway connecting Chittagong and Cox's Bazar to promote trade and regional connectivity.
This assistance forms the first tranche of $1.5 billion ADB loans for the South Asia Subregional Economic Cooperation (SASEC) Chittagong-Cox's Bazar Railway Project, said a press release here.
The first tranche will finance 20 percent of the progress towards constructing 102 kilometers of new railway line between Chittagong and Cox's Bazar.
Economic Relations Division (ERD) Secretary Kazi Shofiqul Azam and ADB Principal country Specialist Jyotsana Varma signed the agreements on behalf of their respective sides.
"This project, which is closely aligned with Bangladesh's Seventh Five Year Plan, will provide efficient, safe and environmentally-friendly railway transport," said Jyotsana Varma.
"The project design will integrate features that are friendly to the elderly, women, children, and people with disabilities," he added.
The new rail link, which opens in 2022, aims to transport 2.9 million passengers annually between Chittagong and Cox's Bazar by 2025.
The construction of this railway section is one of several ADB railway projects to help Bangladesh meet its targets under its Seventh Five-Year Plan and Railway Master Plan.
It will help boost Bangladesh Railway's freight market share to 15 percent and passenger market share to 10 percent by 2020 - both are currently around 4 percent.
Chittagong-Cox's Bazar Railway forms part of the Trans-Asia Railway network, an initiative led by United Nations, aiming to provide seamless rail links between Asia and Europe to better connect people and markets.

news:new nation/22-jun-2017

Dr Zaed Bakht, Chairman of the Board of Directors of Agrani Bank Limited, presiding over its 10th Annual General Meeting at Bangabandhu International Conference Center, ‘Green View Hall,’ Shere-E- Bangla Nagar in city recently.

Posted by BankInfo on Thu, Jun 22 2017 09:34 am

Dr Zaed Bakht, Chairman of the Board of Directors of Agrani Bank Limited, presiding over its 10th Annual General Meeting at Bangabandhu International Conference Center, ‘Green View Hall,’ Shere-E- Bangla Nagar in city recently.

news:new nation/22-jun-2017

BB for uninterrupted ATM, MFS services during Eid vacation

Posted by BankInfo on Thu, Jun 22 2017 09:27 am

Bangladesh Bank (BB) on Tuesday asked the commercials banks to ensure smooth and uninterrupted transactions through the Automated Teller Machine (ATM), Point of Sale (POS), e-Payment Gateway and Mobile Financial Services (MFS) services during the vacation of Eid-ul-Fitr.
In a circular, BB instructed the banks to ensure adequate security in the ATM booths, create awareness among merchants and clients to prevent forgery in POS services, launch the Two Factor Authentication (2FA) on Card not Present transaction for online e-Payment Gateway and inform the clients about transactions through SMS service. t also instructed the banks to provide Help Line services during the vacation, if any client faces harassment.

news:new nation/22-jun-2017
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