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.
Sour loans unleash banking crisis
Banks and financial institutions are facing a major crisis, triggered by rising troubled loans, high concentration on large borrowers and the lack of due diligence in credit disbursement, speakers have said. The warning came at a seminar on “Restructuring and liquidation of financial institutions and impact on stakeholders” in the city on Thursday last.
Act promptly to fix banking ills
The International Monetary Fund (IMF) has put forwarded a six-point recipe for Bangladesh to address its banking sector weaknesses. The recommendations include strong corporate governance, enforcing ‘fit and proper criteria’ for banks’ directors, enhancing banking regulations, reforming state banks, tightening criteria for loan rescheduling or restructuring and enhanced legal system to accelerate loan recovery.
Economy off to struggling start in FY20
The country’s economy has shown signs of sluggishness in three months (July-September) of the current fiscal year 2019-2020 as all major indicators, except remittance, performed poorly in the period. Export earnings, import payment, private sector credit growth, revenue collection, development budget implementation, and financial market situation became worse or weak in the first quarter of FY20 compared with the corresponding period of last fiscal year 2018-19.
BB resumes selling of US$ to banks after month
The central bank of Bangladesh has resumed providing foreign exchange (forex) support to banks through selling the US dollars to them in October after one month’s interval, officials sad. Under the move, the Bangladesh Bank (BB) has sold US$40 million to different commercial banks so far this month to meet the growing demand for the greenback in the forex market.
Weekly Review: Stocks keep losing amid confidence crisis
Bangladesh’s stocks extended the losing streak for the third straight week that ended on Thursday as worried investors continued their selling binge on large-cap shares. Week on week, DSEX, the prime index of the Dhaka Stock Exchange (DSE), went down by 39.22 points or 0.82 per cent to close at 4,771.
Mega development projects boosting infrastructure business
Infrastructure-related businesses in the country are growing as major development projects are either going on or in the pipeline, participants in the 26th Build Bangladesh International Expo 2019 have said. A total of 267 companies from Bangladesh, India, China, Sweden, Germany, Italy, the USA, Uzbekistan, the UAE, Malaysia, Thailand, Indonesia, Egypt, Sri Lanka, Finland and Turkey show cased their latest innovations and products at the three-day expo that ended yesterday.
Overseas investors furious over extension of mutual fund’s tenure
City of London Investment Management Company (CLIM) has come down hard on the Bangladesh Securities and Exchange Commission for its decision to allow asset management firms to extend the tenure of closed-end mutual funds without securing approval from unitholders. Closed-end mutual funds are investment funds that gather a fixed pool of money for 10 years from a number of investors and re-invest them into stocks, bonds and other assets. After 10 years they are supposed to be liquidated and the value of the funds distributed among unitholders.
US Coast Guard wants all goods scanned at Ctg port from Nov
The US Coast Guard has suggested that the Chattogram Port Authority ensure by October a full-scale scanning system of the US-bound export containers as part of implementation of the International Ship and Port Facility Security (ISPS) code. National Board of Revenue officials said all US-bound export containers would have to be scanned at the port from November this year.