Good morning. Here's what happened overnight and what you need to know today.
1.
Govt Bank Borrowing Rises: The government's net borrowing from the banking system rose in the first two and half months of the current fiscal year in the face of falling tax collection and surging foreign debt servicing costs, raising concerns of a crowding out effect on private credit. The government's borrowing from banks increased by Tk 6,568 crore during July 1 to September 15 of fiscal year (FY) 2024-25. During the same period a year ago, the net borrowing from banks fell by Tk 8,939 crore, according to the Bangladesh Bank (BB) data. (The Daily Star)
2.
BB to Start Assessing Quality of Banks' Assets: Bangladesh Bank is set to start assessing the quality of banks' assets next month to know the overall situation of the sector, in a prelude to comprehensive reforms. "We may start the assessment phase from November," BB Governor Dr Ahsan H. Mansur told a press conference at the office of the Alternate Executive Director (AED) for Bangladesh, Bhutan, India and Sri Lanka at the World Bank Group in Washington, USA, on Tuesday. He is now in Washington to attend the Annual Meetings of the World Bank Group as a member of the Bangladesh delegation, headed by Finance Adviser Dr Salehuddin Ahmed. The adviser also spoke at the event. (The Financial Express)
3.
Why US Buyers Still Find Bangladesh Among Top Apparel Sources: Without the duty-free benefits, Bangladesh has been able to remain the third largest source of apparel for the USA. As China's grip weakens and brands look beyond Vietnam, can Bangladesh sustain its share in the American market? The latest US International Trade Commission report suggests Bangladesh is well on its way. American buyers view Bangladesh as a promising sourcing alternative to China and Vietnam and find it one of a few countries that can compete with China in some clothing categories, according to the USITC report published on 30 August. (The Business Standard)
4.
Flood-Hit SMEs Seek Govt Assistance: Devastating floods in August and the following months have made life miserable for dairy and livestock farmers as well as small entrepreneurs, who are now struggling to meet operational expenses and repay bank loans after losing most of their belongings.Some businesses and homes have been directly damaged by the floods while others experienced a sharp decline in sales, according to various entrepreneurs and leaders of business associations. (The Daily Star)
5.
Taxpayers to E-file Sans Bank Statements Now: In a significant move to streamline the tax-filing process, the revenue board announces that individual taxpayers will no longer be required to submit supporting documents like bank statements when filing returns online. The National Board of Revenue (NBR) chairman Md Abdur Rahman made the disclosure at a press briefing convened at the NBR headquarters. (The Financial Express)
6.
Banking Sector Flush with Tk1.90 lakh Crore in Excess Liquidity: The banking sector in Bangladesh, once facing a liquidity crisis, is now seeing a surplus, holding Tk 1.90 lakh crore in excess liquidity, according to the Bangladesh Bank (BB). This shift is being attributed to a rise in depositor confidence following the recent political changes in the country. (The Business Post)
----Saju Sarker
BBN/SSR/AD