Good morning. Here's what happened overnight and what you need to know today.
1.
How Some Non-Banks Tamed Bad Loans: When most non-bank financial institutions (NBFIs) in Bangladesh are in hot water with high ratios of non-performing loan (NPL), a handful have been successfully able to keep the rate low. Good governance, selection of diligent borrowers and proper risk management have helped secure the low ratio, according to top executives of the NBFIs. (The Daily Star)
2.
Hunt for OMS Food Grows Desperate: In the bustling area of Mirpur-10 in the capital, over 300 people gathered early Monday morning, hoping to buy subsidised essentialsthat serve as a lifeline for low-income families. Men, women, and children were waiting under the metro rail station, eagerly anticipating the arrival of a truck from the state-run Trading Corporation of Bangladesh (TCB), scheduled to sell rice, lentils, edible oil and other essentials at prices much lower than the market rate. (The Daily Star)
3.
Stock Market Faces Tk9,700cr Negative Equity Burden: Despite only 15% of Bangladeshi stock market investors using margin loans, negative equity in these accounts has swelled to over Tk9,700 crore, equivalent to 56% of all outstanding investor loans gone sour – a situation that has left brokerage firms and merchant banks scrambling, according to a BSEC document seen by TBS. Now lenders, unable to force repayment of market losses due to the nature of the loans, are left struggling with weakened balance sheets and eroding investor confidence. These toxic assets have shaken financial institutions, undermining the stability of an already fragile market. (The Business Standard)
4.
First-Ever CenBank Guidelines for Foreign Joint Ventures Stress Accountability, Transparency: The Bangladesh Bank has issued the first-ever comprehensive guidelines for joint ventures or consortiums or associations (JVCA) with foreign partners in Bangladesh, aiming to streamline operations, ensure accountability, and promote transparency. The guidelines detail rules on establishment and reporting procedures, banking transactions, financial statement requirements, loan regulations, and outward remittance policies. (The Business Standard)
5.
Rising Taka-Dollar Exchange Rate Affects Trade Competitiveness: Businesses lose out as the real effective exchange rate (REER) index rose to 102.97 in October from 100.40 in September that signals a decline in the competitiveness of Bangladesh's currency in international trade, sources say. According to the latest measure for October 2024, prepared by Bangladesh Bank, the central bank, this increase reflects the rising price levels in Bangladesh compared to its 15-currency-trade-basket partners. Sources in business and banking circles sound alarm that this development could adversely impact the country's export performance. (The Financial Express)
6.
Govt Approves Two Hard-Term Loans worth $260m: The interim government on Wednesday approved two hard-term credits worth US$260 million to invest in power transmission, road and terminal development, officials said. The Standing Committee on Non-Concessional Loans (SCNCL) of the government approved the loans at its meeting at the Economic Relations Division (ERD), with Finance Adviser Dr Salehuddin Ahmed in the chair. ERD Secretary Shahriar Kader Siddiki, Finance Secretary Md. Khairuzzaman Mozumder and other high officials of the Ministry of Finance were present at the meeting. (The Financial Express)
----Saju Sarker
BBN/SSR/AD