This article is adapted from the keynote speech on Water & Energy Efficiency Financing of SK Sur Chowdhury, Deputy Governor of Bangladesh Bank, gave at a workshop, organised by the International Finance Corporation (IFC), World Bank Group in the capital Dhaka on February 28.

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The taka is one of the most stable currencies in emerging markets, having appreciated sharply during 2012 but then remaining around at BDT 77.5 to the dollar since early 2013. While its EM peers suffer sharp currency depreciations, Bangladesh Bank — isolated from the commodities crash — has had the luxury of being able to buy hard currency reserves to stabilise its currency.

Rahman admitted that his was a “pleasant challenge”, with foreign currency reserves having increased from $6bn to $26bn in the 6-1/2 years that he has led the central bank.
The governor also reiterated his belief that Bangladesh would finance the economically important 6.15km Padma Bridge project, for which the World Bank had committed financing only to withdraw it in 2012, with local money.
“The World Bank thought we’d get stuck but I’ve said we’ll put the money in ourselves if needed,” said Rahman. “I am allowing Bangladeshi banks to put their money in the Padma Bridge project, and if they fall short they can get the dollars from us. They just need to mobilise taka.”
With dire warnings on EM growth ringing loud around Lima, Rahman was serenely optimistic.
“We are not vulnerable to capital outflows in EM because our exposure to the world economy is minimal,” he said. “We have managed to keep our economy growing at a good rate and the return on investment that we offer is so high that people still find it very attractive.”

Continued growth in remittances from Bangladeshis living abroad has been crucial to the increased foreign exchange reserves, and the governor is also positive on this front.
“In many countries remittances are falling but we expect to see continued increases — in part thanks to the stability of the taka versus the dollar,” he said.

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This article is adapted from the opening speech of Dr. Atiur Rahman, Governor of Bangladesh Bank, gave at presentation of BB’s MPS for H1 of the FY 16 held at the central bank headquarters in the capital Dhaka on July 30, 2015.

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Dhaka, Bangladesh (BBN) - From a childhood of abject poverty, Atiur Rahman has climbed the ladder to become the governor of Bangladesh Bank, the country’s central bank. But the soft-spoken 62-yearold will never forget those harsh days and the people who helped him along the way, humbly saying he owes them his life.

“I repay (their generosity) by helping the poor,” he tells China Daily Asia Weekly. “Had there been no good people in the world I would have (remained) poor in the countryside. My father was an extremely poor, landless farmer. We were five brothers and three sisters, and often spent days without enough food.” Since reaching his current position in 2009, Rahman has been on a mission to reduce poverty in Bangladesh through inclusive development.

Born in a remote village of Jamalpur district, north-central Bangladesh, the young boy received early basic education at home from his mother. Later, the family’s financial situation could not keep the young boy in the village primary school and he had to drop out before reaching the third grade. After that, he was assigned the job of taking domestic animals out to graze. In the evenings he would then bring the milk to the market to sell. The turning point of his life came in the form of a “drama”, he says. One day, he had the opportunity to attend a theater performance at a local school. Enjoying the atmosphere of the school, he was determined to return to the education system. His older brother persuaded the school’s principal to allow the young Rahman to attend the final examinations as a private candidate.

For three months leading up to the examinations, Rahman stayed at a friend’s house to prepare. He came in first place in the school and was moved to the fourth grade. “On hearing the good news, my father sold a goat to buy new books and clothes for me,” he recollects. “In my spare time I helped my family.” The schoolboy’s determination and hard work meant that he was awarded a partial scholarship to attend the prestigious Mirzapur Cadet College in the central Tangail district.

A school teacher in the village, Foyez Moulavi, collected charity donations to pay for the remaining admission cost, he still remembers. Later, the school’s authorities granted him free tuition. When the final examinations came around, he passed with flying colors. After that the village boy never looked back. He enrolled in the University of Dhaka in the country’s capital to study economics, obtaining a bachelor’s degree and master’s degree.

A Commonwealth Scholarship gave him the opportunity to study at the School of Oriental and African Studies at the University of London, where he obtained his PhD in 1977. Later published as a book, his doctoral thesis, Peasants and Classes, is much admired by economists worldwide. Fast-forward to the present day, and Rahman has recently clocked up five years as the governor of Bangladesh Bank. He recalls the proud moment he was chosen for the position. “I still remember, I was giving a lecture in Nepal when the government announced my name as governor of the bank,” he says. When he started the job, the country was reeling under a financial crisis due to the global meltdown. He successfully steered the economy, especially the financial and banking sector, out of trouble.

Besides building necessary coordination between monetary and fiscal policies to ensure inflow of investments and job creation, he put his energy into developing the rural economy with micro finance and an inclusive growth model, of which he is a great champion. Prior to becoming governor of the bank, Rahman was a professor in the Department of Development Studies at the University of Dhaka. Before that, he had worked at the Bangladesh Institute of Development Studies in various capacities for nearly 28 years. He also played a major role in the microcredit revolution in Bangladesh. He served on a national task force on the eradication of poverty that was established by Muhammad Yunus, who set up the Grameen community bank in the country.

Rahman, who has already initiated a vigorous approach to make banking services available to deprived people, says financial inclusion is the important factor that would result in more equitable economic growth. “Financial inclusion of the poorest — particularly their access to small-sized credit for income-generating selfemployment activities — is a major tool in Bangladesh for combating poverty,” he says. “Micro finance, which was pioneered by Nobel laureate Dr Yunus, is now being replicated worldwide extensively. In that regard, Bangladesh has shown the way,” he says. Rahman says the bank will focus on leveraging the potential synergies in partnerships between banks, micro finance institutions, and telecom service providers in bridging the remaining gaps in financial inclusion.

Citing the success of the Bangladesh economy, which has maintained GDP growth rates of 6 percent per year since the global financial meltdown, the governor says inclusive financing must be a new global priority to ward off the next round of financial crises.

In another previous role, Rahman served as director of the state-owned Sonali Bank, the largest in Bangladesh. In 2001, the government appointed him as the chairman of the board of directors of the Janata Bank, the second-largest bank in the country. During his tenure at the helm of the central bank, he has involved all banks and financial institutions in a countrywide campaign to bring financial services to the marginalized poor, farmers, unemployed and rural women.

“Women entrepreneurship development is one of the important dimensions of the inclusive policy,” he says. “Engaging women in economic activity by providing enhanced access to financial services is the key target,” he adds.

The father of three daughters says that “unless we engage women in activities where they have competitive edge over others, the country will be losing national output by underutilizing their skills and creative ideas”.

Rahman’s ideas are not immune to criticism, and his detractors say that he has been running the central bank like a non-governmental organization. He, however, takes those disapprovals in his stride. “That is part of the game. Every morning I flip through newspapers to see how many criticisms there are against me,” he says with a smile. “I take criticism positively.” The governor, however, believes that the central bank cannot be an onlooker when the country’s poor people are dying on the street. Nevertheless, Rahman points out that Bangladesh offers generous opportunities for investment under its liberalized industrial policy and export-oriented, private sector-led growth strategy.

“We also help create an enabling environment for expanding private investment, both domestic and foreign,” he says. “And we need a country like China to invest. It will be a win-win proposition.” The bank is also increasing its concentration on infrastructural development by introducing a refinance program for environmentally friendly investments in solar energy, biogas plants and effluent treatment plants.

“We consider ‘green banking’ as a socially responsible mode of financing and deem it as one of the major drivers of sustainable economic development,” he says. His green banking initiatives were awarded in 2012, when he was presented with the ‘Green Governor’ title in the United Nations Climate Change Conference, held in Doha. With much planned for the future, Rahman is determined to continue making changes for the better in the top role. For now though, he is content with being distinguished as a champion of poverty alleviation and is happy to be known as the “poor man’s governor”.

BBN/SSR/AD-29May14-12:36 pm (BST)

Dhaka, Bangladesh (BBN) - Gulzari Lal Babber is a very bright name in the history of CIMA. He is one of the ex students of CIMA as well as the past president.
Gulzari has a very motivating career and life history for the young students who are attending CIMA. He passed his FCMA CGMA. He got admission in CIMA in the year 1967and in 1984 he was admitted as an Associate. He became a fellow in 1997 and was CIMA President from 2012 to 2013.
At a very young age Gulzari wanted to become a Management Accountant and had to wait for few years prior to enrolling as a CIMA, student in 1967, at that time known as Cost and Works Accountants but after that he started travelling and stepping up every time he changed his job.  It was only because of his interest and wishes he could earn a lot of respect and fulfilled his dream as well.
Mr. Gulzari who has GCE/’O’ levels as the only educational qualification did not go to any university for higher education..He bears a very inspiring personality for the young learners and for those who want to build up their career in Accountancy and Management.
In 1972 he moved to London and is one of the Institutes registered member in practice who runs his own accountancy and taxation practice in Harrow, west

London, since 1985.Gulzari has experience in Insurance, travel, wholesale import, and medical, manufacturing and service provision organizations. He says that “ Once the students qualifies CIMA, the multinational companies looks for them, and CIMA management accountancy is required in every field it doesn’t have to be restricted in one industry.”
He has struggled a lot during his study life but he never gave up. He always believed in hard working and dedication. He was never demoralized when he could not pass the exam in the first sitting but he had learned from his mistakes. He himself became a CIMA member after 17 years from the time he started studying in 1967. He always suggested the students for hard working. He said “Hard working is very very important. If you fail do not give up”.
Since 2001 Gulzari has also chaired a number of the Policy Committees:  the Members’ Services Committee, the Marketing Committee, the Professional Standards Committee and the Technical Committee before being elected CIMA Vice President in June 2010.  He has also been a member of the Institute’s Executive Committee since 2001.
The Chartered Institute of Management Accountants is a UK based professional body in management accountancy with a sole focus on business. CIMA founded in 1919 is one of the world’s leading professional bodies of management accountants having 203,000 members and students across 176 countries. His view regarding CIMA is that it’s the world’s largest management accountancy institute which adds value to the financial accounts and ensures the long term sustainability to the organization they work for.
In very simple words he describes CIMA as “CIMA look at the future rather looking at the back”. So from this definition of Mr. Gulzari it is clear that CIMA institute is providing such man power that has the potential of to provide a long term survival plan to the business world.

Mr.Gulzari Lal Babber was born in 1944 in Lahore (united India) and his family moved to present India in 1947.The family Immigrated to Nairobi, Kenya in 1956 and since 1972 has lived in the UK.

BBN/SSR/AD-19May14-12:01 pm (BST)

Dhaka, Bangladesh (BBN)- Former Bangladesh Bank (BB) governor Salehuddin Ahmed has expressed concern over slow growth rate and said it should be oriented towards productive and employment generating activities, which will benefit people.
 

Dr. Ahmed, also professor of business school, BRAC University, said efforts to increase the growth rate should also aim at overall development of the society, according to ANI report.
 

"Even if we do not have this eight percent, even if it is six or seven percent if that particular growth is oriented towards, it comes from productive activities and employment generating activities then I think even with this five to six percent growth rate it will be benefit the overall general people," the former BB chief noted.
 

Unrest eased after the polls, which were boycotted by the main opposition party and shunned by international observers. But the respite could be short-lived as the opposition has said it will launch a fresh movement to try and topple the government.
 

The government raised heavily subsidised electricity tariffs in March and plans to increase gas prices, which could push inflation still higher and add to public anger over the spiralling cost of living.
 

Dr. Ahmed urged the government to emphasise on balanced growth and on the areas which were usually neglected.
 

"Government should really emphasise on the employment generation, poverty alleviation, de-centralise development - a kind of balance growth in all over Bangladesh as your see that main of the areas of Bangladesh are still neglected," he suggested.
 

The government had said it wants to trim inflation to seven percent in the current fiscal year ending in June.
 

Stressing on investment in Bangladesh, Dr. Ahmed said the key sectors of the country are struggling due to poor investment.
 

"If there is no investment there will be no productive activities and there will be no employment. So, ultimately it creates into the economy and if you take the components of national economic growth industry, manufacturing sector and services contribute the most in our growth. But for last two-three years there has not been much investment.”
BBN/SSR/AD-07May14-11:50 pm (BST)

Dhaka, Bangladesh (BBN)-Mosharraf Hussain, the managing director of the fire-ravaged Standard Group, is hopeful of achieving this year's export target.

The group, whose garment exports stood at $330 million and $325 million in 2013 and 2012 respectively, is targeting to hit $350 million-mark this year.

Six apparel units out of 22 of the group were gutted to ashes on November 28 last year in Konabari of Gazipur.

“I am fighting back. I am recovering fast, as everyone is helping me. You can say I am lucky,” Hussain, told reporters recently.

Double shifts have been introduced in the remaining 16 units to meet the target, the 71-year-old said.

The group had incurred a loss of BDT 10 billion due to the fire.

Bangladesh Bank has come up with a soft loan proposal of $25 million, while the foreign banks operating in the country have also pledged to allocate $25 million at 5 percent interest rate and the amount will help the group to achieve its target, said Hussain, also a civil engineer.

At least 12,000 workers were working in the extinguished units, and 90 percent of them have already been engaged in the group's other units.

“The door is still open for the remaining 10 percent if they want to join back,” Hussain said adding that the company is also ready to pay compensation to them as per the laws of the land.

As for the burnt-out buildings, which spanned on 6.5 lakh square feet land, he said they have been abandoned for now, but a Thailand-based consulting firm along with some Bangladeshi experts is examining to find out whether it can be used.

“I am here today despite so many ups-and-downs in my business over the last 30 years. said Hussain, who started his garment business with a small factory at Kalabagan in Dhaka in 1984.

More than 50,000 people have been working in the group at present.

BBN/MJI/ANS/22Apr14-2:20 pm (BST)

The Bangladesh Bank (BB), the country’s central bank, has have taken a number of initiatives to promote small and medium enterprises (SME) lending, says BB Governor Atiur Rahman
 
In our country, 90% private sector enterprises are SMEs. 70 to 80% of the non-agricultural workforce in our country is working at SME sector. SMEs have a significant role in generating economic growth and job opportunities. SME sector of Bangladesh contributed up to 25% of Bangladesh's GDP last year. about 40% of gross manufacturing output, and around 25% of the total labour force in Bangladesh belongs to SME sector. They also make a significant contribution to exports. Uniquely, SMEs are also geographically widely distributed so they offer a good prospect for geographic diversification of the economy.
 
Bangladesh Bank, along with other relevant Ministries, and financial sector have been working relentlessly for the development of SME sector. The establishment of SME & Special Program Department, a separate department in Bangladesh Bank and the service provided through this department for further development of the SME sector is an evident of our efforts.

Moreover, as the Central Bank, we have taken a number of initiatives to promote SME lending. Within the SME credit policy in 2010 for guiding the commercial banks to be involved in SME financing, a number of initiatives have been taken, such as for banks’ to establish “Dedicated Desks” in branches for SMEs and “SME Service Centres”. Bangladesh Bank has fixed the targets for banks SME credit disbursements and an emphasis on providing loan to small entrepreneurs and women entrepreneurs have been communicated.
 
Banks in Bangladesh are being supported in SME financing initiatives with refinance line from Bangladesh Bank, which has funded by Bangladesh Bank, Government of Bangladesh and development partners like IDA, ADB and JICA.

Under refinance scheme, Bangladesh Bank has provided 23.97 billion taka (as of July 2012) to different banks and NBFIs at subsidized interest rate. 15% of this fund (Taka 4.00 billion) is reserved for women entrepreneurs.
 
Bangladesh Bank and IFC undertook two key projects for SME sector development. Of these two, the SME Market Segmentation Database is first of its kind in South Asia. Under this initiative, information on SME sector will be generated and will be made available for all stakeholders of SME development.
 
Bangladesh bank has also issued directives to commercial banks for using the cluster approach for better targeting the SME sector. It is also worthy to mention that Bangladesh Bank is currently working in a research project to find out the impact of the SME financing activities undertaken by the commercial banks in Bangladesh. We are very much committed for developing SMEs in Bangladesh.
 
However, coordinated efforts are required to overcome SME financing challenges. Banks and NBFIs need to be motivated towards enduring engagement in SME financing. Concerned public authorities, banks, business community and civil society support groups need to engage effectively with the SMEs in understanding their needs and prospects.

Banks and NBFIs would need to have a tailored and explicit strategy for SME banking in place in order to build a solid SME banking strategy to facilitate sound growth and profitability in SME banking, and  have a much better credit evaluation mechanism, product design, marketing skills, and knowledge of customer and product profitability.
 
The further development of financial institutions in light of their SME lending practices must, undoubtedly, be paralleled with further development in human resources. This, in turn, requires plans for training and qualifying trainers to enable financial institutions to undertake their important role in serving the national economy.

Thus, as the financial sector is expected to serve the growing financing needs of the SMEs, the availability of well-trained human resources would undoubtedly become one of the predicaments in successful SME banking operations.

Therefore, the development and organisation of seminars such as this, and various training programmes for the two main training institutions, namely, Bangladesh Bank Training Academy and Bangladesh Institute of Bank Management, through the EU-funded INSPURED project, would be an important step in making sure that adequate trained human resources would be available, as well as an improved awareness is the special need of Bangladeshi financial sector in case of SME financing.
 
In today’s world, market development is a much more challenging task, which requires coordinated efforts by individual business enterprises and the Government. Bangladesh needs to maximize the benefits derived from the SME sector, as this sector plays a pivotal role in promoting and sustaining the industrial as well as overall economic growth.

The role of SMEs in providing productive employment and earning opportunities has emerged as an important concern among policy makers, and donor agencies. The implementation of the INSPIRED project is directly related to Bangladesh’s priority to foster SME development, and will undoubtedly support the different initiatives taken by the Bangladesh Government to encourage SME growth, which in turn will support the longer term objectives of sustained economic growth and poverty reduction.
 
Within the above contexts, I would very much like to express my appreciation for the valuable assistance and effort of Bangladesh INSPIRED project component-3, and we are confident that through such technical assistance, we would be able to contribute towards the sustainable and high-quality training in SME banking offered by our two prominent training institutions BBTA and BIBM. We are equally pleased to see the presence of the banking sector participants to utilize such training programs.
 
Today we have a unique opportunity to be stimulated by some strategic thinking ideas. The INSPIRED project component-3 has put together an exciting seminar designed to bring a fresh perspective on your bank’s strategic processes. I urge you to get the maximum benefit from this seminar. Our foreign banking expert,

Mr. Robert Patterson, brings a wealth of ideas and experience to us here in Dhaka. In conclusion, I can only reiterate my thanks to all those who have contributed to the progress and accomplishment of the project , in particular the management and staff of BBTA and BIBM, the Ministry of Industries for their effortless supervision of the project, and the European Union for its immense support and assistance.

Note:  Speech by Bangladesh Bank Governor Dr. Atiur Rahman at launching of SME banking strategy seminar held at Pan Pacific Sonargaon Hotel in Dhaka on April 28.

 Dhaka, Bangladesh (BBN) - The Global Alliance for Banking on Values (GABV), a network of the world’s leading sustainable banks, is going to adopt common global parameters among its member-banks for ensuring sustainability.
The decision was taken at the GABV annual meeting 2013 held in Berlin on March 14-15, a senior member said in Dhaka.
 “We’re now discussing issues including creation of employment particularly for women, returns on assets and improving the level of efficiency for inclusion as common global parameters of the GABV,” Syed Mahbubur Rahman, managing director and chief executive officer (CEO) of the BRAC Bank Limited, was quoted by the Financial Express (FE), a local newspaper, as saying.
The BRAC Bank CEO took part in the annual meeting that called for more transparency, sustainability and diversity to upgrade the banking system and address the global financial crisis.
“Sustainable banks are much better than mainstream ones,” Mr. Rahman said, adding that sustainable banking focuses on meeting real human needs – jobs, education, housing, environmental security – through the banking system in an economically sustainable manner.
“We’re tracking the use of money after providing loan to our clients to know the social impact of lending,” he said while replying to a query relating to use of borrowed money.
“3P philosophy of People, Planet and Profit adopted by BRAC Bank is a way forward to be more transparent, sustainable and diverse. SME banking makes us more sustainable that significantly contributes to real economy,” he noted.
The GABV is also thinking to involve  its member banks’ employees for pushing the theory of sustainable banking through effective communication.
“We want to inculcate culture of sustainable banking among the employees of our member-banks,” the BRAC CEO said. The GABV members have already appointed ‘value ambassadors’ aiming to expedite the effective communication, he added.
A meeting will be held in Denmark in June this year in this connection, according to Mr. Rahman.
BRAC Bank is the only member from South Asia to the global forum.
BRAC Bank is one of country’s fastest growing banks. With 155 branches, more than 300 ATMs, 397 SME Unit Offices and over 8,000 human resources, BRAC Bank operation now cuts across all segments and services in financial industry.
 With more than 1.2 Million customers, the Bank has already proved to be the largest SME Financier in just 11 years of its operation in Bangladesh and continues to broaden its horizon into retail, corporate, SME, probashi and other arenas of banking.
In 2010, BRAC Bank has been recognized as Asia’s most Sustainable Bank in Emerging Markets by the Financial Times and IFC. The Bank is the country’s first founder member of Global Alliance for Banking on Values (GABV) – a network of the world’ leading sustainable banks.

The GABV was set up in 2009. It now has 22 members on six continents. Members are bound by a shared commitment to find global solutions to international problems and to promote a positive, viable future for the financial system based on the principles of sustainable banking.
Members include microfinance banks in emerging markets, credit unions, community banks and sustainable banks financing social, environmental and cultural enterprises.
BBN/SSR/AD-26Mar13-1:55 pm (BST)