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.
Huge domestic borrowing weighs on economy
Government borrowing from domestic sources including banking sector hit a record growth of nearly 45 per cent in the immediate-past financial year, as shrunk investment opportunities weighed on the economy, a finance ministry report revealed. Foreign grants declined remarkably during the period that, however, saw a marginal growth in external borrowing, the report said. Economists termed the trend unhealthy for the economy as the costly borrowing persistently increased the interest liability for the country and created budgetary mismatch.
Basic for early bond issuance
The state-owned Basic Bank has requested the government’s finance authority to expedite bond issuance to help it out through replenishing its capital shortfall of Tk 26 billion as per requirement of the Basel-III provision. In a letter to the ministry of finance (MoF) the bank’s managing director, Khondoker Md Iqbal, made the request and forwarded a sample of the proposed ‘Basic Bank Recapitalisation Bond’, officials said.
Hasina urges global retailers to be responsible
Prime Minister Sheikh Hasina urged the global producers, retailers and consumers to be responsible for the progress of business and realisation of labour rights. “We would benefit more if business is regarded as a shared responsibility by all at home and abroad,” she said. Hasina was addressing the launch of the global deal initiative on enhanced social dialogue for decent work and inclusive growth, organised by Swedish Prime Minister Stefan Lofven at the UN headquarters on Wednesday.
Economic Zone investors to get duty exemption on imports
Economic zones developers and investors in Bangladesh will get full exemption from customs, regulatory and supplementary duties and value-added tax on imports of materials locally unavailable. The government recently offered a set of incentive packages for them to encourage more investments – both foreign and local. The Internal Resources Division issued separate gazette notifications to the effect of the benefits.
Bangladesh’s stocks end higher for second week
Bangladesh’s stocks closed higher for the two consecutive weeks that ended on Thursday, the first week after prolonged nine-day Eid vacation, as optimistic investors took position on some large-cap stocks. Brokers said the market maintained the upward trend for two consecutive weeks with activities remained strong as enthusiastic investors remained active on some large-cap stocks, taking the benchmark index to eight months high level.
CORE BANKING SOLUTION INSTALLATION: SCBs likely to miss Dec deadline
The four state-owned commercial banks are very likely to miss the deadline for implementing the core banking solution, a centralised online real-time system, at their all branches. In 2013, Bangladesh Bank asked the four banks — Sonali, Janata, Agrani and Rupali — to set up the CBS networking system by December 2016 to boost their automation system. ‘The CBS is a process which is completed in a centralised environment under which the information relating to the customers’ accounts and all types of financial dealings are stored,’ a BB official told New Age on Thursday.
Negative NPL-ROA ties concern policy-makers
The negative relationship between classified loans and profitability has been a major concern for the policymakers in the banking industry of Bangladesh, according to a study conducted by the central bank. The study recommended that the authorities of commercial banks should adopt proper policy to improve the efficiency of liquidity management.
Atiur for boosting financial inclusion drive in Bangladesh
Bangladesh should further enhance its drive for financial inclusion for navigating domestic and external shocks, former governor of the central bank of Bangladesh Dr. Atiur Rahman has said. The former governor made the suggestion while addressing at a seminar held at the International Monetary Fund (IMF) headquarters in Washington DC on Thursday, according to a message received in Dhaka from Washington on Friday.