Dhaka, Bangladesh (BBN) – Trade services are becoming increasingly challenging to the banks and financial institutions of Bangladesh, SK Sur Chowdhury, deputy governor of Bangladesh Bank (BB), has said.
“Though trade finance is seen as a relatively safe and liquid asset, with low default rates, however, it is self-liquidating and short-term in nature; banks can run down their trade finance portfolios quickly in times of financial stress,” the deputy governor said while addressing at the workshop as the chief guest.
The review workshop on ‘Trade Services Operations of Banks’, held at Bangladesh Institute of Bank Management (BIBM) in Dhaka on Sunday with BIBM Director General Dr. Toufic Ahmed Chowdhury in the chair.
Mr. Sur Chowdhury also said all these challenges can offer invaluable lessons to the trade service providers of Bangladesh.
“Considering the concerning issues of trade based money laundering, compliance requirements, and other financial crimes, regulatory supervision and reporting became crucial,” he explained.
The returns or statements are important tools for monitoring and reporting which are of great importance to the Bangladesh Bank that includes both on-line and off-line reporting, according to the deputy governor.
“Adequate and reliable information on operations, process and trends in different trade services activities are crucial for bankers, academicians and researchers of the relevant fields for improving trade services,” Mr. Sur Chowdhury explained.
A study on Trade Services Operations of Banks was presented by BIBM Director (Training) Professor Dr. Shah Md. Ahsan Habib at the workshop.
Among others, Mehmood Husain, Managing Director and Chief Executive Officer of NRB Bank Limited, Syed Mohammad Bariqullah, faculty member of BIBM and former deputy managing director of National Bank Limited, and Mahbub ul Alam, deputy managing director of IBBL, also spoke on the occasion.