Dhaka, Bangladesh (BBN) – The BBN (Bangladesh Business News) has prepared the morning business round up compiling reports, published by different newspapers and news portals in Bangladesh.
Bank owners in Bangladesh put BB, policymakers on trot
Bank owners’ using powers to realise ‘undue’ demands thwarted the role of the Bangladesh Bank while the government’s bailing out the almost bankrupt Farmers Bank, hit by loan scams, set a bad precedent in the ailing banking sector in the outgoing financial year 2018. Experts noted that FY18 was inauspicious one as both the central bank and the government policymakers had to remain busy amidst wave of demands, including for amendment to the Bank Company Act 1991 and decrease in cash reserve requirement, by the bankers.
42 stops before starting business
An investor needs up to a year and a half to get approvals from 42 desks of different government offices for starting a business, which according to the businesses is depriving Bangladesh of the much-needed foreign direct and domestic investments. The foreign direct investment (FDI) Bangladesh receives is insignificant compared to its peers and neighbours. Even Myanmar, with its troubled economy, received four times more than Bangladesh’s around $2 billion in 2016-17 fiscal year. India got around $50 billion last year.
Establish commission to speed up tax reform
Bangladesh needs major reforms in its tax and tariff scheme to stimulate growth and exports, a leading think-tank has said. To speed up the reform, the government should move to establish a tax reform commission and introduce a uniform VAT system, said the Policy Research Institute of Bangladesh (PRI).
Weekly review: Bangladesh FX market stable
Bangladesh foreign exchange (forex) market witnessed a stable trend in the last week, ended on Thursday as the central bank continues its foreign currency support to the banks, market operators said. The central bank of Bangladesh has sold US$74 million more to different commercial banks to meet the growing demand for the greenback in the market.
Bangladesh’s stocks end lower for six straight weeks
Bangladesh’s stocks witnessed yet another bearish week that ended on Thursday, extending the losing streak for six weeks in a row, as risk-averse investors continued their selling spree. Analysts said the investors’ confidence to the market remained low amid ongoing sluggish market trend coupled with upcoming national budget.
The rapid growth of agent banking in Bangladesh
Within just one-and-a-half years of its inception, agent banking has been able to attract a huge number of clients, forcing most commercial banks to take up this alternative form of financial service in addition to branch-based banking. Agent banking is a limited scale banking and financial service for those living in remote areas across the country through persons under a valid agency agreement, rather than a teller or cashier, according to Bangladesh Bank agent banking guideline 2013.
BB to jack up farm loan target
The central bank plans to set the farm loan disbursement target for banks at Tk 21,500 crore for the next fiscal year, which is 5.39 percent higher than that of the current year. The disbursement target would be set in line with the requirement of the finance ministry, which will take into consideration the amount of outstanding loans and advances of banks as of April 30.
Tofail laments banks’ reluctance to cut interest rate despite getting benefits
Bangladesh commerce minister Tofail Ahmed on Saturday criticised banks for their reluctance to cut interest rate even after getting several benefits from the government in recent months. ‘We need to be careful about the banking sector and we are concerned about the interest rate,’ the commerce minister said while addressing a seminar on the contribution of housing sector to national economy held at Dhaka Club.