NGO - Bangladesh Business News

CPD to form citizens’ review commission on banking

BBN Desk — Wed, 07 Aug 2019 04:26:18 +0000

Dhaka, Bangladesh (BBN)- The Centre for Policy Dialogue (CPD) has decided to form a “Citizens’ Review Commission on Banking” because of the deteriorating health of the banking sector and the ‘inertia’ of the government to address the problems.

The board of trustees (BoT) of the think-tank took the decision at its 53rd meeting in Dhaka on Tuesday, according to a CPD statement.

The commission will include eminent economists, experts, private sector representatives and former bankers and government officials, it added.

“The proposed Citizens’ Review Commission on Banking seeks to establish transparency regarding data and information on the sector, identify the root causes of the malaise, and, suggest remedial measures for the policymakers.”

Professor Rehman Sobhan, chairman of CPD, presided over the meeting attended by trustees M Syeduzzaman, former finance minister; Syed Manzur Elahi, chairman of Apex Group; Rasheda K Choudhury, executive director of CAMPE; Shahdeen Malik, eminent jurist; Debapriya Bhattacharya and Mustafizur Rahman, distinguished fellows of CPD; Fahmida Khatun, executive director and member-secretary of CPD’s BoT.

BBN/SSR/AD

Atiur for removing NTBs to boost Indo-Bangladesh Trade

BBN Desk — Fri, 18 Aug 2017 04:26:58 +0000

Dr. Atiur Rahman is addressing at a workshop in New Delhi on August 17, 2017. Photo: BBN

Dhaka, Bangladesh (BBN) - Former Governor of Bangladesh Bank (BB) Atiur Rahman has emphasized on removing non-tariff barriers (NTBs) for boosting bilateral trade relations between India and Bangladesh.

Professor Rahman made the observations while addressing at a workshop held in New Delhi on Thursday with Prithviraj Nath, Associate Director of CUTS International, in the chair.

Besides infrastructural deficit, the former BB governor also indentified a number of non-tariff barriers including regulatory hurdles, absence of harmonized standards, lack of mutually acceptable certification facilities on both sides of the border and capacity related challenges.

Dr. Rahman advised civil society organizations and think tanks to carry on focused research and advocacy on these issues to ensure that governments take advantage of the existing positive political understanding for initiating positive policy and actions on the ground to remove these challenges.

“Given the proximity and common consumption pattern Bangladesh and India are not definitely utilizing fully the opportunities of bilateral trade" the senior economist explained.
He also said that on the Indian side of the border the land port facilities have been improved significantly.

“Facilities on the Bangladesh part need to be at par with those to ensure effective trade. Line of credit from India to Bangladesh is being utilized in developing railway infrastructure,” he noted.

He also said: “We can also utilize this credit in developing our land port infrastructure as well. We can benefit from the experience of India in developing land ports as well.”

Dr. Atiur Rahman is addressing at a workshop in New Delhi on August 17, 2017. Photo: BBN

Dr. Rahman also asked policy makers to take note of the valuable lessons being learned through innovative trade measures like border hats and take appropriate policy moves at a wider scale for mutual benefits.

Besides, he brought to the notice of the participants the existing information asymmetry on the ground and advised officials at the border points to be well equipped with legal and regulatory requirements so that they can explain these to both exporters and importers.

“Awareness raising initiatives are needed to further sensitize all stakeholders about the benefits of improved bilateral trade,” he said.

Dr. Rahman also advised to hold regular policy discussions with multi-level stakeholders to ease trade facilitation.
Among others, Stephen Wide of USAID and Anil Jauhuri, chief executive officer (CEO) of National Accreditation Board of Certification Bodies, India also spoke on the workshop, organized by CUTS International.

Stakeholders representing government, think tanks, trade bodies, NGOs from the sub-region participated in the workshop, according to a message, received in Dhaka from New Delhi.

BBN/SSR/AD

Sur Chowdhury gets top banker award

BBN Desk — Mon, 12 Jun 2017 07:38:39 +0000

SK Sur Chowdhury receives top banker award at function in Dhaka on June 10, 2017. Photo: BVF

Dhaka, Bangladesh (BBN) - SK Sur Chowdhury, deputy governor of Bangladesh Bank (BB), has been awarded Kabi Nazrul Smriti Pathak -2017 as a top banker by a non-governmental organization, Banglavision Foundation recently.
Mr. Sur Chowdhury received the award at a function held at the Institution of Engineers, Bangladesh in the capital Dhaka on Saturday.
He entered into the financial sector as a career banker completing his graduation in English language and literature with honours which was followed by MA in the same subject from the Rajshahi University.
He also secured MBA in Finance and Accounting. He is a Diplomaed Associate of Institute of Bankers Bangladesh (DAIBB) and awarded with Bangladesh Bank Gold Medal for achieving the first position in the Banking Diploma examination.
Mr. Chowdhury is a deputy governor in the line of his long career which was started as an Assistant Director in the apex bank. As the second person of the central bank of Bangladesh he has been playing a pivotal role to strengthen the rosining financial sector of Bangladesh.
Earlier he was awarded with Gandhi Peace Award 2014, Atish Dipankar Gold Medal 2015, Mother Teresa Memorial Award 2015, ICM Award 2016 as appreciation for his contribution in the financial sector.
The Banglavision foundation (BVF) is a government registered non-profit social organization in Bangladesh with branches in different districts and upzilas for sustainable development of Bangladesh.
The BVF publishes two research journals both online and offline under BVF with various research related updates and information.

BBN/SSR/AD

Bangladesh’s Fazle Hasan Abed wins World Food Prize

BBN Desk — Thu, 02 Jul 2015 05:18:40 +0000

Des Moines, Iowa (BBN)-Fazle Hasan Abed, the founder of Bangladesh Rural Advancement Committee (BRAC), a nonprofit organisation in Bangladesh, has won the World Food Prize 2015.
The 79-year-old Abed will receive the award and $250,000 in prize money at an October ceremony.
Abed is credited with helping more than 150 million people out of poverty in Bangladesh.
Iowa-based foundation Des Moines announced the award on Wednesday at the State Department in Washington.
World Food Prize President Kenneth Quinn said the ability of Abed, who was knighted in London in February 2010, to successfully transition BRAC it into a global relief organisation was the key to his win.
BRAC has spearheaded efforts to reduce infant mortality, educate children, empower women and fund microloan programs and other assistance to help lift the poor out of poverty.
The programs created for Bangladesh have expanded to 10 other nations.
It helped Bangladesh to recover from the 1970 typhoon that killed about 500,000 people and the subsequent war fought in 1971 to win independence from Pakistan. Bangladesh was once listed as the second poorest country in the world.
The World Food Prize was created by Nobel laureate Norman Borlaug in 1986 to recognize scientists and others who have improved the quality and availability of food. The foundation that awards the $250,000 prize is based in Des Moines, Iowa.
BBN/AI

Dr Yunus among top finance pioneers of all time

BBN Desk — Tue, 21 Apr 2015 07:45:55 +0000

Dhaka, Bangladesh (BBN)-Nobel laureate Prof Dr Muhammad Yunus has been selected as one of the six greatest business pioneers by The Financial Times.
In an article entitled ‘Business Pioneers in Finance’, UK-based international newspaper placed the microcredit guru alongside five other greatest pioneers — Warren Buffett, Amadeo Giannini, Henry Kravis, JP Morgan, and Mayer Amschel Rothschild.
The newspaper selected the founder of Grameen Bank as one of the 50 business pioneers of all time.
The article, published in the newspaper’s March 31 issue, describes “how financial innovation seems to be all around us today yet, it’s not only technology that shapes it, but it’s rather about how a few pioneers in finance chose their investments and expanded credit.”
His championing of small loans to the poor in Bangladesh — and the related idea of social business — has spread around the world. At home the same socially responsible values are very much in evidence in BRAC Bank, for example, according to the FT.
Born in Chittagong, then in East Bengal, in 1940, Yunus pursued research in economics, moving to the US to study for a doctorate.
But the war that led to the independence of Bangladesh in 1971 drew him home.
Within three years, at a time of famine and persistent poverty, he grew frustrated with university teaching and focused on working directly with the poor.
In 1976, he began offering very small loans without security to the poor, notably women, to bypass loan sharks, initially extending the money interest-free and then underwriting bank loans himself, while insisting on immediate and regular repayments by instalment.
That became the basis for Grameen Bank (“the bank of the village”), which in 2013 made 7m loans totalling $1.6bn.
Its model has since been exported to many other countries, even the US.
His efforts won Yunus and the bank a joint Nobel prize in 2006 — for peace rather than economics.
“Yunus’s long-term vision is to eliminate poverty in the world,” the jury concluded.
“That vision cannot be realised by means of microcredit alone. But Muhammad Yunus and Grameen Bank have shown that, in the continuing efforts to achieve it, microcredit must play a major part.”
Microfinance has faced growing criticism, however, with accusations that in many countries the interest rates are usurious and that it misallocates finance at the expense of mid-sized and larger enterprises while doing little to alleviate poverty.
A study in Hyderabad in India in 2015 by Esther Duflo of Massachusetts Institute of Technology concluded it had made little difference to lifting households out of poverty.
“Microcredit may not be the ‘miracle’ it is sometimes claimed to be, although it does allow some households to invest in their small businesses,” she concluded.
Grameen came under criticism, with Sheikh Hasina Wajed, Bangladesh’s prime minister, accusing it of “sucking blood from the poor”.
Yunus himself became embroiled in a battle for control with the government and stepped down as head of the bank aged 70 in 2011.
Undeterred, he continues in books and speeches to champion “social business”, which, like Grameen, reinvests profits rather than paying out dividends.
BBN/AS-21Apr15-1:00pm (BST)

Unnayan Onneshan sees private sector credit growth target not to be achieved

BBN Desk — Sat, 31 Jan 2015 06:19:00 +0000

Dhaka, Bangladesh (BBN)- The Unnayan Onneshan (UO), an independent multidisciplinary think-tank, sees that the growth in private sector credit may fall short of target in view of the observed trend of unachieved targets in previous occasions.
The UO in its January issue of Bangladesh Economic Update 2015, released on Saturday, cautioned that this trend of shortfall in targets of growth in private sector credit may further worsen the sluggish rate of private investment triggered by current political uncertainty, and cause the rate of growth in gross domestic product not to reach the target of 7.3 percent in FY2014-15.

The research organization also said that till November of FY2014-15 when the political unrest did not reach the current level, the Bangladesh Bank remained far away from its target of 14 percent growth in private sector credit set for the period of July-December of FY2014-15.
“The target of 15.5 percent for the January-June period of FY2014-15, therefore, seems to be unrealistic amidst the current state of severe political uncertainty since January 2015,” the Update noted.
Referring to the gap between the targets and actual of private sector credit growth, the UO said that the rate of growth in private sector credit became 12.7 percent in November of FY2014-15 against the target of 14 percent.
Similarly, the rate of private sector credit growth was calculated at 10.8 percent and 12.3 percent during FY2012-13 and FY 2013-2014 respectively against the target of 18.5 percent and 16.5 percent respectively, it added.
The “cautiously restrained” policy may face the challenges of increasing real interest rate due to the recent discrepancies between the decrease in inflation rate and the decrease in nominal interest rate, comments the research organisation.
The think tank also said the point to point inflation came down to 6.21 percent in November of FY2014-15 from 7.04 percent in July of FY2014-15 representing 0.83 percentage point decrease, whereas the nominal interest rate decreased to 12.49 in November of FY2104-15 from 12.84 percent in July of FY2014-15, representing 0.35 percentage point decrease.
Consequently, the real interest rate is on the rise and stood at 5.74 percent, 5.89 percent, and 6.28 percent in September, October, and November of the FY2014-15 respectively.

The UO observed that the decline in deposit rate is higher than that in lending rate causing the interest rate spread to remain high. The deposit rate and lending rate decreased to 7.40 percent and 12.49 percent respectively in October of FY2014-15 from 7.79 percent and 13.10 percent respectively in June of FY2014-15. Meanwhile, the spread, however, decreased to 5.09 percent in October of FY2014-15 from 5.31 percent in June of FY2014-15 and 5.15 percent in March of FY2014-15.

In regard to increased non performing loan vis-à-vis the total loan and availability of large amount of idle money in the banking system, the UO said the non performing loans compared to the total loan increases from 10.5 percent in January-March of FY2013-14 to 10.8 percent in April-June of the same fiscal year.
Meanwhile, the net non performing loan increased to 3.9 percent in June of FY2013-14 from 3.4 percent in March of FY2013-14, it added,
Referring to persistent deterioration in the financial portfolio of the state-owned banks, the research organization said that the government plans to allocate BDT 60 billion to the four state owned banks in FY2014-15, which was BDT 41 billion in December of FY2013-14 representing a increase of 46.34 percent.
The shortfalls in capital in the banking sector can largely be attributed to the inefficiency in the sector caused by slack surveillance, frequent incidence of scam and fraudulence, captured governance, and poor risk management, according to the UO.

Calling for a cautious harmonisation of fiscal and monetary policies that would cause both the money and fiscal multiplier to work in the economy and channel adequate resources for the expansion of productive capacities, the UO urged for an inclusive political dialogue between the political parties that would create a stable investment climate and increase the private investment by restoring business confidence and cause the national output to grow at 6.26 percent in FY2014-15, as projected by the UO.

BBN/SSR/AD-31Jan15-12:20 pm (BST)

UO sees shrinking public sector investment may contract expansion of GDP

BBN Desk — Sat, 01 Mar 2014 07:27:57 +0000

Dhaka, Bangladesh (BBN) – Falling trend of revenue collection growth, rising per capita debt burden and shrinking public sector investment may contract expansion of gross domestic product (GDP), the Unnayan Onneshan (UO), an independent multidisciplinary think-tank, said Saturday.

The UO’s observation came in the backdrop of reduction in investment and growth for the successive three years from those of the preceding ones. In fiscal year (FY) 2010-11, the GDP growth rate was 6.71 percent, which declined to 6.23 percent in FY 2011-12, and further fell to 6.03 percent in FY 2012-13.

The UO anticipated that the rate of growth in GDP in the current fiscal may fall below the decadal average of six percent and may reach as low as 5.65 percent.

It also cautioned that the pressure in revenue collection is likely to add up to budget deficit, which is targeted at 4.6 percent of GDP in FY 2013-14. In FY 2013-14, total public borrowing is targeted at BDT 550.32 billion, which is BDT 39.86 billion greater than the previous fiscal year.

Considering the business as usual scenario, the UO estimated that the gap between total revenue and expenditure might increase to BDT 581.70 billion in FY 2014-15 from BDT 550.32 billion in FY 2013-14.

It also suggested that the government should revisit its tax structure (regressive tax structure) and institutional arrangements with a view to collecting as much direct tax as possible, which may set the government to reduce the burden of indirect tax incurred by the marginalised section in the country.

“In FY 2013-2014 (up to January 2014), the collection of indirect tax is as high as 69 percent vis-à-vis a direct tax of only 31 percent of total collection of tax. While direct tax causes the rich to pay tax on their income, indirect tax exerts much pressure on the meagre income of the marginalised people in the country,” the private organisation said in its latest Bangladesh Economic Update, released on Saturday.

The UO said that the lower revenue collection reduces expenditure in the social and physical expenditure. “The spending in education and health and family welfare are only 5.92 and 4.26 percent as a percentage of total budget in FY 2013-14. These are 0.12 and 0.61 percentage points lower than the last fiscal year.”

Besides, actual annual development programme (ADP) implementation has seen a large fall in recent time from Tk. BDT 310.89 billion in FY 2012-13 from BDT 380.20 billion in FY 2011-12. Moreover, the actual ADP implementation up to January 2014 is Tk. 167.484 billion against the revised allocation of Tk. 540.00 billion.

It also said that the total collection of tax revenue might be BDT 1232.46 billion in FY 2013-14 as against the annual target of BDT 1360.90 billion. “Moreover, if the present trend continues the rate of growth in collection of actual revenue might fall to 9.3 percent in FY 2013-14 from 14.2 percent in FY 2012-13.”

Referring to the per capita debt burden, the research organisation said that the rising trend over the years which might cause per capita debt burden to increase to BDT 35.828 billion FY 2013-14 from BDT 33.898 billion in FY 2012-13. In fiscal year 2011-12, per capita debt burden was BDT 29.822 billion. The ever-rising public debt has been exerting a serious pressure on the macro-economic stability in the country, it observed.

BBN/SSR/AD-01Mar14-1:30 pm (BST)

Disbursement of foreign donation for NGOs drops in Bangladesh

BBN Desk — Fri, 07 Dec 2012 08:00:38 +0000

Dhaka, Bangladesh (BBN)- Disbursement of foreign donation for non -governmental organizations (NGOs) has declined significantly in the recent months because of ongoing economic meltdown in the United States and the European Union, officials said.

Foreign donation for the NGOs came down to BDT 18.89 billion during the January-June period of the current calendar year from BDT 19.58 billion in corresponding period of the previous calendar year, according to the central bank statistics.

“It’s a temporary phenomenon. The inflow of foreign donation for NGOs may rise in the next six months”, Nurun Nabi Talukder, director general of NGO Affairs Bureau (NGOAB), said.

He also said the foreign donation for NGOs depends on the country’s overall socio-economic condition.

Around 2,200 NGOs are entitled for foreign donation in line with the existing Foreign Donation (voluntary activities) Regulations Ordinance, according to the NGOAB officials.

The Bangladesh Bank (BB), the country’s central bank, is monitoring the inflow of foreign donation, which has been disbursed through only banking channel, for NGOs, a central bank official said.

“The central bank prepares report on disbursement of foreign donation for NGOs on a half-yearly basis in line with the figures, provided by all scheduled banks,” the BB official said.

BBN/SSR/AD-07Dec12-2:01 pm (BST)

BRAC to build 400 boat schools by 2014

BBN Desk — Sat, 17 Nov 2012 05:57:00 +0000

Dhaka, Bangladesh (BBN)- BRAC will build 400 boat schools for disadvantaged children in the remote flood plains of Bangladesh by 2014.

Educate A Child (EAC) is an initiative, recently launched by Sheikha Moza bint Nasser, the wife of the Emir of Qatar.

EAC will also provide funds for operation of BRAC’s 2,000 slum schools in urban areas. The announcement came at the World Innovation Summit on Education held in Doha, Qatar, on November 13-15, says a press release.

BRAC Founder and Chairperson Sir Fazle Hasan Abed and senior officials Asif Saleh and Dr Safiqul Islam were invited to the summit.

On October 22, Sheikha Moza inaugurated a BRAC boat school in Sunamganj and said the "floating school" was an innovative solution in the country's marshlands where flood and poverty made normal schooling almost impossible.

BBN/SSR/AD-17Nov12-11:56 am (BST)

Volunteer for Bangladesh celebrates World Water Day 2012

BBN Desk — Sat, 24 Mar 2012 19:51:12 +0000

Dhaka, Bangladesh (BBN) - Volunteer for Bangladesh, the volunteer wing of JAAGO Foundation has stepped in to clean up the Banani Lake in its annual World Water Day campaign.

This year the challenge lasted for three days and two nights, and was sponsored by Coca-Cola Bangladesh and Robi Axiata Limited.

One participating team was selected from 11 districts across Bangladesh, namely Barisal, Chittagong, Dhaka, Feni, Gazipur, Jhalukathi, Khulna, Narayanganj, Rajshahi, Rangpur and Sylhet.

The project was designed to give the volunteers a view into the lives of the Karail slum-dwellers and their daily problems, a press statement said.

On the first and second day, participants undertook numerous challenges, including a Treasure Hunt, the Shower Challenge and the biggest task, the Lake Cleaning Challenge.

All of these challenges were designed to help increase understanding between the slum-dwellers and the volunteers.

Volunteers made roadside tea, sold fish at a dock market and completed the Treasure Hunt with the help of the local people. They collected a total of 1,562 1/2 kilograms of waste materials from the lake, on the second day.

The participants also attended an awareness session as well as a Motivational Session conducted by prominent youth leaders, who spoke about the importance of conserving water and the role each citizen plays in it.

The Volunteer for Bangladesh project is supported by The U.S. Embassy, Dhaka.

BBN/SSR/AD-25Mar12-1:20 am (BST)