Now, the banking system has overnight or 1-day, 7-day, 14-day and 28-day term repo facilities
Default loans in Bangladesh’s banking sector reached a record high of Tk211,391 crore at the end of June earlier this year. During the June quarter (April-June), default loans increased by Tk29,391 crore, 16.14% higher than the previous three months, according to...
Apparel/Garments Bangladesh central bank orders fresh loans for exporters to pay wages 02 Sep '24 2 min read Pic: Adobe Stock Insights Bangladesh's central bank has instructed all banks to introduce a fresh loan facility on simple terms to active exporters to pay workers' wages for August as recent domestic disruptions and global economic conditions have hit timely export value repatriation. Banks can recover this loan in equal installments within a year, with a grace period of three months. Bangladesh’s central bank yesterday instructed all banks to introduce a fresh loan facility on simple terms to active exporters to pay workers’ wages for August as recent disruptions caused due to political instability and global economic conditions have affected timely export value repatriation.As per Bangladesh Bank’s guidance, the industries that export four-fifths of their total production are considered export-oriented industries and will get separate loans.Bangladesh's central bank has instructed all banks to introduce a fresh loan facility on simple terms to active exporters to pay workers' wages for August as recent domestic disruptions and global economic conditions have hit timely export value repatriation. Banks can recover this loan in equal installments within a year, with a grace period of three months.The amount of the loan will not be more than the average wages and allowances of the last three months of the recipient factories. The prevailing market rate of interest will be applied.The factories that have paid staff wages from May 2023 to July 2024 will be considered active factories and will be verified through certificates from the respective trade associations.The total debt of the factories, including this loan, to pay the wages of the workers should be within the single loan limit.Banks can recover this loan in equal installments within a year, with a grace period of three months in the form of a term loan, according to domestic media reports.Trade bodies had earlier requested Bangladesh Bank governor Ahsan H Mansur for such a loan. Fibre2Fashion News Desk (DS) More Apparel/Garments News - Bangladesh... -->
The Bankers' Selection Committee of Bangladesh Bank has scrapped all professional recruitment tests slated for Sunday citing "unavoidable reasons". Bangladesh Bank's Spokesperson Executive Director Mezbaul Haque confirmed the news to The Business Standard. The announcement came hours after the BNP called for a countrywide dawn-to-dusk hartal for Sunday. More to follow...
In the first week of July, the Bangladesh Bank and Islami Bank Bangladesh completed a US dollar-taka trade, a typical mutual currency deal, which was supposed to replenish the central bank’s dwindling forex reserves and provide the cash-strapped Shariah-based lender with some liquidity support.
At the end of the June quarter, the amount of the defaulted loan was Tk10,328 crore, which increased to Tk11,757 crore in the following quarter.
Textiles Bangladesh Bank relaxes regulations for encashing export proceeds 01 Nov '23 1 min read Pic: Adobe Stock Insights The Bangladesh Bank recently allowed encashment of export proceeds at the prevailing exchange rate of foreign currencies in due time even if there is delay in realisation of proceeds. The flexibility will be offered till December 31 this year. Exporters have been demanding the prevailing market rate for dollars in case of encashment of receipts. The Bangladesh Bank recently relaxed regulations related to encashment of export proceeds in taka to encourage exporters to bring receipts.A central bank circular said it would allow encashment of export proceeds at the prevailing exchange rate of foreign currencies in due time even if there is delay in realisation of proceeds.The Bangladesh Bank recently allowed encashment of export proceeds at the prevailing exchange rate of foreign currencies in due time even if there is delay in realisation of proceeds. The flexibility will be offered till December 31 this year. Exporters have been demanding the prevailing market rate for dollars in case of encashment of receipts.The flexibility will be offered till December 31 this year, domestic media outlets reported.As Bangladesh sees falling forex reserves, the realisation of export proceeds has fallen below the export figures released by the Export Promotion Bureau.Exporters have been demanding the prevailing market rate for dollars in case of encashment of receipts.The central bank had said in March this year that banks could offer prevailing exchange rates for dollars and other currencies in the case of realisation of export proceeds within 120 days of the shipment of goods. Fibre2Fashion News Desk (DS) More Textiles News - Bangladesh...
India’s share in global trade has not kept up with its fast-growing economy, as Vietnam and Bangladesh have surpassed the country as low-cost manufacturing and export hubs, according to a recent report of World Bank (WB)..Despite India’s rapid economic growth, the proportion of trade in go
Bangladesh Bank yesterday asked the foreign ministry to verify a number of information of five foreign shareholders of Nagad Digital Bank PLC.
S Alam Group's control over First Security Islami Bank Ltd (FSIBL) ended today after the Bangladesh Bank reconstituted the board of the Shariah-based bank, which was heavily dominated by individuals linked to the Chattogram-based conglomerate..The central bank dissolved the previous 11-mem
The apparel industry of Bangladesh needs to be more focused on ethical and sustainable labour practices and manufacturing to compete with the competitive global market. The country needs to focus on these as the demand for ethical and sustainable work practices are increasing...
Likely to make credit costly as banks will have to borrow from the central bank at the new rate
Of the total 13,016 crore classified loans, six institutions held Tk7,916 crore or 60.81% of the total non-performing loans, as of December 2021
Apparel/Garments Bangladesh's leather goods exporters now eligible for extra discounts 19 Dec '22 1 min read Pic: Shutterstock Bangladesh leather and leather goods exporters can now apply to the discount committee of the Bangladesh Bank for over 5 per cent discount against export of their items. A circular in this regard was issued by the foreign exchange policy department of the central bank recently. The apparel sector was the sole beneficiary of the benefit till now.The decision will help such exporters offset the loss of export proceeds they often incur by offering buyers discounts of more than 5 per cent prescribed in the guidelines for foreign exchange transactions.In some cases, buyers bargain for additional discounts after settling the price.Bangladesh leather and leather goods exporters can now apply to the discount committee of the Bangladesh Bank for over 5 per cent discount against export of their items. A circular in this regard was issued by the foreign exchange policy department of the central bank recently. The apparel sector was the sole beneficiary of the benefit till now.If exporters can show reasonable evidence of offering additional discounts, the discount committee will consider it, Bangladeshi media outlets reported. Fibre2Fashion News Desk (DS) More Apparel/Garments News - Bangladesh...
BB launches travel credit card in Indian Rupees
Sri Lanka has taken steps to pay off part of the 200 million dollar loan given by Bangladesh. Sri Lanka
Apparel/Garments Bangladesh's central bank raises interest for safety retrofit facility 18 Apr '24 1 min read Pic: Adobe Stock Insights Bangladesh Bank issued a notice raising interest rate on a pre-finance facility under SREUP to 7 per cent from 5 per cent. Interest rate for customers for whom loans have already been sanctioned will remain at 5 per cent per annum. Interest rate for financial institutions which would disburse loan among customers has been refixed at 4.5 per cent per annum. Bangladesh’s central bank, Bangladesh Bank, has recently announced an increase in the interest rate for its pre-finance facility within the Support Safety Retrofits and Environmental Upgrades Programme (SREUP), raising it from 5 per cent to 7 per cent.Notably, customers with existing sanctioned loans will maintain their interest rate at 5 per cent per annum.Bangladesh Bank issued a notice raising interest rate on a pre-finance facility under SREUP to 7 per cent from 5 per cent. Interest rate for customers for whom loans have already been sanctioned will remain at 5 per cent per annum. Interest rate for financial institutions which would disburse loan among customers has been refixed at 4.5 per cent per annum. Additionally, the interest rate for financial institutions facilitating loan disbursement to customers has been adjusted to 4.5 per cent per annum, resulting in a 2.5 per cent margin.The notice emphasised that loans will be allocated on a “first come, first served” basis, with all other instructions remaining unchanged.It may be mentioned here Bangladesh Bank implemented this project specially designed to strengthen economic sustainability of the RMG sector even if through this project, efforts are directed towards implementing safety retrofits and environmental upgrades, crucial for the long-term viability and competitiveness of the industry. Fibre2Fashion News Desk (DR) More Apparel/Garments News - Bangladesh...
Textiles Inflation, stability of currency rate main challenges for Bangladesh 19 Jan '23 1 min read Pic: Shutterstock Containing inflation, which has been rising since the beginning of fiscal 2021-22, and maintaining the stability of currency rate will be the major challenges for Bangladesh in the coming days, the Bangladesh Bank said in its annual report. An orderly exit from the extraordinary expansionary policy stance was necessary due to rising global commodity prices.The inflation outlook in the coming months will depend on further spillover of price from supply-demand mismatch, the ongoing Russia-Ukraine war, the volatility in the exchange rate and commodity price hike in the international markets, the central bank noted.The budget deficit is also widening and government borrowing from the banking system, particularly from the central bank, has sharply increased recently, which could create upward pressure on the inflation outlook, the bank noted.Containing inflation, which has been rising since the beginning of fiscal 2021-22, and maintaining the stability of currency rate will be the major challenges for Bangladesh in the coming days, the Bangladesh Bank said in its annual report. An orderly exit from the extraordinary expansionary policy stance was necessary due to rising global commodity prices.Meanwhile, the Ukraine war heightened the potential losses of export demand along with international commodity price hikes, which led to higher import costs and trade deficit, mounting pressure on exchange rates, the annual report said.The main factors behind the negative overall balance in the balance of payment are higher import growth, negative growth of remittances and less inflow in the capital and financial accounts, it observed. Fibre2Fashion News Desk (DS) More Textiles News - Bangladesh...
The Bangladesh Bank today gave go-ahead to Nagad Finance PLC to form a non-bank financial institution (NBFI).
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বাংলাদেশ ব্যাংক নিয়োগ ২০২২ Bangladesh Bank Circular 2022: সম্প্রতি প্রকাশিত হয়েছে। তারা স্নাতক পাসে নিম্নেবর্ণিত পদের জন্য দক্ষ ও যথোপযুক্ত লোক খুঁজছেন। নির্ধারিত সময়ের মধ্যে উপযুক্ত নারী-পুরুষ উভয় প্রার্থীদেরকে আবেদন করার আহ্বান জানানো যাচ্ছে। বিস্তারিত অফিসিয়াল বিজ্ঞপ্তিতে দেখুন।
The High Court today granted six weeks' anticipatory bail to 438 BNP leaders and activists from 12 districts in 27 cases filed on different charges..The cases were filed in Dhaka, Naryanganj, Jamalpur, Meherpur, Gazipur, Narsingdi, Munshiganj, Tangail, Bogura, Pabna, Barishal and Netrakona
Textiles Bangladesh's forex falls under $20 bn again 19 Apr '24 2 min read Pic: Adobe Stock Insights Bangladesh's foreign exchange reserves fell below $20 billion following decrease in remittance inflow, the Bangladesh Bank said in a report. Decrease in remittance inflow is attributed partly to a shift towards hundi, an informal money-transfer system. Meanwhile, finance minister has asserted confidence in Bangladesh's economic recovery. Bangladesh’s foreign exchange reserves have dwindled below the $20 billion mark due to a recent slowdown in remittance growth, as reported by the central bank, Bangladesh Bank.At the close of Thursday (18 April), reserves amounted to $19.89 billion, a decline from the previous week’s $20.10 billion, according to Bangladesh Bank’s statement.Bangladesh's foreign exchange reserves fell below $20 billion following decrease in remittance inflow, the Bangladesh Bank said in a report. Decrease in remittance inflow is attributed partly to a shift towards hundi, an informal money-transfer system. Meanwhile, finance minister has asserted confidence in Bangladesh's economic recovery. The decrease in remittance inflow is attributed partly to a shift towards hundi, an informal money-transfer system circumventing formal banking channels, which offer less favourable exchange rates for dollars.This slump below $20 billion follows a previous instance in March, when Bangladesh’s reserves dipped below this threshold after settling import bills worth $1.29 billion with the Asian Clearing Union (ACU).The ACU payments for January and February were resolved in the initial week of March.According to the central bank’s data, foreign exchange reserves stood at $19.99 billion on 7 March, a significant drop from $21.15 billion the day before. This decline contrasts sharply with the peak of over $48 billion in forex reserves recorded in August 2021.Meanwhile, finance minister Abul Hassan Mahmood Ali addressing the concerns over the International Monetary Fund’s (IMF) downward revision of Bangladesh’s growth forecast for the current fiscal year, asserted confidence in the nation’s economic recovery.Speaking at the World Bank-IMF spring meeting in Washington DC recently, Ali reassured that there is no need for alarm regarding the IMF’s adjusted projection, expressing satisfaction with Bangladesh’s economic rebound.Ali emphasised the effectiveness of government-initiated economic reforms, noting their positive impact on the country’s recovery from the crisis. While acknowledging that some remain pessimistic despite gradual improvements, he remained optimistic about the trajectory of Bangladesh’s economy.The IMF’s revised growth forecast, pegging Bangladesh’s economic growth at 5.7 per cent for the fiscal year 2023-24, was unveiled in its World Economic Outlook report. The revision reflects various challenges, including persistent inflation, unemployment, reduced remittance inflows, and a decline in industrial investment targets, both globally and domestically.This marks the second time the IMF has adjusted Bangladesh’s growth forecast, down from its initial projection of 6 per cent in October of the previous year. The revision aligns with a cautious outlook amidst economic uncertainties, echoed by similar sentiments from other international financial institutions.The Asian Development Bank (ADB) recently forecasted a 6.1 per cent expansion in Bangladesh’s GDP for the same fiscal year, attributing growth to export performance.Conversely, the World Bank anticipates subdued growth, primarily due to reduced private consumption stemming from high inflation. Fibre2Fashion News Desk (DR) More Textiles News - Bangladesh...
Textiles Bangladesh cuts cash reserve for offshore banks to spur foreign trade 05 Mar '24 2 min read Pic: Adobe Stock Insights Previously, offshore banking units had to maintain a 2 per cent CRR, but this requirement has now been abolished. Additionally, banks can transfer unlimited funds from offshore to domestic units, unlike the previous cap of 40 per cent. Currently, Bangladesh hosts 34 offshore banking units disbursing significant amount of foreign currency loans. The Bangladesh Bank, the central bank of the country, has recently eased cash reserve ratio (CRR) conditions for offshore banking units to facilitate foreign trade.As per the recent announcement, these units are no longer required to maintain any CRR with the central bank, aiming to streamline operations.Previously, offshore banking units had to maintain a 2 per cent CRR, but this requirement has now been abolished. Additionally, banks can transfer unlimited funds from offshore to domestic units, unlike the previous cap of 40 per cent. Currently, Bangladesh hosts 34 offshore banking units disbursing significant amount of foreign currency loans.Previously, offshore banking units had to maintain a two per cent CRR, but this requirement has now been abolished.Additionally, banks can transfer unlimited funds from offshore to domestic units, unlike the previous cap of 40 per cent.This move is expected to boost trade finance and increase the scope of banking activities.A senior official highlighted that it would attract foreign investment, injecting foreign currency into the economy.Currently, Bangladesh hosts 34 offshore banking units disbursing significant foreign currency loans.Moreover, the cabinet recently approved the Offshore Banking Act 2024 draft, aiming to exempt tax on interest earned by depositors. Under this act, no income tax or charges will be imposed on interest or profits earned by offshore banking units.These units will be allowed to take deposits from 100 per cent foreign-owned companies and provide various foreign trade-related services. Medium and long-term financing facilities must adhere to Bangladesh Bank directives.Furthermore, banks operating offshore units must obtain a license from the Bangladesh Bank, with operations commencing within six months of licensure.Special approval from the central bank is required for transfers between domestic and offshore units, and regular inspections of offshore banking unit data will be conducted. Fibre2Fashion News Desk (DR) More Textiles News - Bangladesh...
The country’s foreign exchange reserves today hit a new record of $43.17 billion thanks to the upward trend of remittance and lower import payments, Bangladesh Bank data showed.
Apparel/Garments Bangladesh Bank reduces EDF lending to exporters from each category 11 Apr '23 2 min read Pic: Shutterstock Insights The Bangladesh Bank has reduced its Export Development Fund (EDF) lending to exporters by $5 million from each category on an average. For general back-to-back letter of credit imports, the new ceiling is $10 million—down from $15 million—for input procurement against relevant export orders. EDF loans were observed not being realised as per instructions. The Bangladesh Bank recently reduced its Export Development Fund (EDF) lending to exporters by $5 million from each category on an average.Mohamad Sarwar Hossain, director at the foreign exchange policy department of the central bank, signed the circular.The Bangladesh Bank has reduced its Export Development Fund (EDF) lending to exporters by $5 million from each category on an average. For general back-to-back letter of credit imports, the new ceiling is $10 million—down from $15 million—for input procurement against relevant export orders. EDF loans were observed not being realised as per instructions.The measure is being widely perceived as suiting the loan prescription by the International Monetary Fund related to arithmetic of the country's forex reserves.There are broadly three categories of imports eligible for the financing facility introduced in 1989 for import of raw materials for manufacturing exportable goods.They are general imports brought under the back-to-back letter of credit (LC); members of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) and leather exporters; and bulk imports by textile millers and dye and yarn makers.For general back-to-back LC imports, the new ceiling is $10 million—down from $15 million--for input procurement against relevant export orders.The limit for import financing under back-to-back LCs by individual member mill of the BGMEA and the BKMEA is set at $20 million instead of $25 million and $15 million instead of $20 million respectively.In the case of bulk import, the maximum eligible limit by a member of eligible associations is revised down to a limit of $5 million.The cap for members of the Bangladesh Textile Mills Association is $20 million and those of the Bangladesh Dyeing and Yarn and Exporters Association is $10 million, according to media reports from the country.The EDF outstanding amounts to $5.2 billion now.The bank said it has been observed that EDF loans are not being realised in accordance with its instructions.The central bank formed the Tk10,000-crore Export Facilitation Fund in early January this year as an export pre-finance scheme and an alternative fund to the EDF. Fibre2Fashion News Desk (DS) More Apparel/Garments News - Bangladesh...
Bangladesh Bank today (November 13, 2022) said there is no liquidity crisis in banks and depositors' money is absolutely safe.
Khulna chosen as venue for inaugural GYLC Summit as it is one of Bangladesh's most climate-vulnerable regions
‘Bangladesh has now become a country of dangerous income inequality. The main goal of the upcoming budget should be minimizing inequality and creating decent jobs’
On Tuesday, banks charged importers up to Tk107 for a dollar, which was Tk105 last week
New notes worth Tk23,000 crore to be released in the market
