Good morning. Here's what happened overnight and what you need to know today.
1.
Defaulted Loans May Double Next Year: The defaulted loan figure is set to double as the Bangladesh Bank is set to tighten the classification rules for all types of loans by March next year to meet the International Monetary Fund's loan conditions. At the end of September, defaulted loans in Bangladesh's banking sector hit a record Tk 2,84,977 crore as loans disbursed through irregularities to Awami League-affiliated businesses turned sour at an alarming pace following the ouster of the Sheikh Hasina-led government on August 5. (The Daily Star)
2.
Bangladesh Loses $335m a Year for Corporate Tax Abuse: Bangladesh is losing $355 million in tax annually because of outward profit shifting by the corporates, particularly multinational firms, and abuses by individuals who have wealth, especially in tax havens. Of that, the revenue-hungry country lost $335.9 million to profit shifting abroad by corporations and $19.1 million on account of tax abuse by individuals owning properties abroad, according to the State of Tax Justice 2024 report published yesterday. (The Daily Star)
3.
Bank Owners’ Forum Was Useless During AL Time: The Bangladesh Association of Banks (BAB), the private bank owners' forum, will work with the central bank governor and the finance adviser to rejuvenate the banking sector, weakened under 15 years of Awami League rule, said its new chairman Abdul Hai Sarker. The BAB's main job is to safeguard the banks' interests during the making and adjustment of government policies. But the forum did not play its due role in the last 15 to 16 years despite being a supreme body in the financial sector, he told The Daily Star in an interview recently. (The Daily Star)
4.
Janata Bank’s 61% Loans Soured Mainly for Beximco, S Alam: Once a financial powerhouse, the state-owned Janata Bank now finds itself in a difficult situation with non-performing loans (NPLs) surpassing 61% of its portfolio – a crisis resulting from unchecked lending to major conglomerates such as Beximco and S Alam groups, leaving the bank in existential crisis. To continue daily operations, the bank is now forced to borrow between Tk18,000 crore and Tk20,000 crore daily from other banks. For the first time in its history, the bank is projected to face operational losses of around Tk2,500 crore by December, after reporting Tk1,474 crore in losses by 30 September. (The Business Standard)
5.
Bangladesh Bank Bills Make a Comeback: A three-year pause on Bangladesh Bank bills is over as the regulator is set to restart the liquidity-sterilization card to offset the injection of high-powered money into the banking system. As part of the liquidity-mopping-up plan, aimed at inflation control, the banking regulator will hold auction of 30-day-tenure bills today (Wednesday) and on November 27 where banks, financial institutions, individual and institutional investors can participate in competitive bidding, according to BB sources. (The Financial Express)
6.
RMG Exports to EU log 2.47pc Neg Growth: Bangladesh's ready-made garment (RMG) exports to the European Union (EU) sustained a 2.47 per cent year-on-year negative growth during the first nine months of 2024. Apparel exports to the EU between January and September fetched 13.43 billion euros compared to 13.77 billion euros during the corresponding period last year, according to Eurostat data. RMG exporters said the EU's overall imports had fallen during the period under review due to the global economic slowdown, while Bangladesh lagged behind its competitors because of a number of factors, including energy shortages and high production costs. (The Financial Express)
----Saju Sarker
BBN/SSR/AD