Economics
One of main causes of crisis in banking sector is dual governance
The sector of Bangladesh’s economy that has been most severely affected in recent times is the banking sector. The banking sector is often compared to the flow of blood in the arteries of a country’s economy. Just as a disruption in the natural flow of blood in a human or animal can cause physical complications or even death, likewise, if the banking sector of a country is not properly and efficiently managed, problems will inevitably arise in various sectors of the economy. Due to financial limitations, entrepreneurs in developing countries like Bangladesh must turn to banks to meet their capital needs. But the banking sector is failing to provide the desired support to entrepreneurs and ordinary borrowers.
Savings certificates interest rates reduction: To add insult to injury
A kind of panic and adverse reaction have been created among the country’s ordinary savers after the government decided to reduce the profit rates on savings certificates on June 30.
Reasons behind rapid expansion of imitation jewellery market
Ornaments made of gold is the most used and most in-demand jewellery in the world. There is no country in the world where there is no demand for gold jewellery. Especially women have always been fond of gold jewellery. Gold jewellery not only enhances women's beauty but is also considered a valuable asset; but now the users of gold jewellery are going through a crisis. Due to the abnormal rise in the price of gold in the international market, the price of gold jewellery has recently increased significantly in the local market. At the same time, due to the instability of the gold market, many people are now unable to use gold jewellery despite their wishes. Although the price of gold jewellery has increased, the pursuit of beauty by enthusiasts has not stopped. Therefore, they have leaned towards imitation jewellery as an alternative to gold jewellery.
Favourable environment necessary to attract foreign investment
Economic development at the desired level is not possible in any way without investment. Even if a country is rich in natural resources, investment is needed to achieve prosperity through the use of those resources. Natural resources must be transformed and continuously modified to enhance economic utility. There are many countries in the world that are rich in natural resources, but due to lack of financial capacity to use those resources, they have to lease them to foreign companies. Foreign companies loot the natural resources of the country. Such situations have been observed in many African countries. Therefore, no dignified country wants to hand over its natural resources to the custody of another country.
Financial incentives for intermediaries cannot attract foreign investment
The Bangladesh Investment Development Authority (BIDA) has taken several initiatives to attract foreign investment. One such initiative is to offer financial incentives to expatriate Bangladeshis who act as intermediaries in attracting foreign investment. Any expatriate Bangladeshi who facilitates foreign investment will be provided with a financial incentive amounting to 1 percent of the investment they help secure. This investment must be new and amount to at least USD 5 million. Many expatriate Bangladeshis attempt to attract foreign investment by leveraging their personal image and relationships. The provision of financial incentives will undoubtedly encourage them.
Islami Bank holds Eid reunion programme
An Eid reunion was held at the head office of Islami Bank Bangladesh PLC on Sunday organized by Islami Bank Officers’ Kallyan Somity (IBOKS).
Budget could have been more inclusive for expansion of SME sector
The VAT on all types of plastic products at the production stage has been increased from 7.5 percent to 15 percent. The tax on cotton yarn at the production stage has been raised from Tk 3 to Tk 5 per kg, and the same applies to yarn made from artificial fibres or blends. Additionally, VAT on blade production has also been increased.
The notes finally reach the market
The ‘new note’ of the ‘new Bangladesh’ has finally reached the market, though it has not come into the hands of the larger public. It was possible only because there was a firm resolve to release the note before the Qurbani Eid. Before the Bakri Eid, the chief adviser, the finance adviser and the governor pressed for the printing of the note. I heard that during this great endeavour, the governor and the finance adviser regularly monitored the process. Due to this created pressure, the employees concerned of Bangladesh Bank and Bangladesh Security Printing Press were on edge, not at ease for a single moment. However, some credit for printing the note in a short time also goes to the suppliers of the note’s paper and ink.
Legal framework of banking sector must be reformed
On June 4, Bangladesh Bank informed the chairmen and managing directors of five Shariah-based banks in a special meeting that it intends to merge them into a single, stronger Islamic bank. The five banks in question are First Security Islami Bank, Global Islami Bank, Union Bank, Social Islami Bank, and EXIM Bank. It is worth noting that toward the end of the last Awami League government’s tenure, an initial attempt was made to merge EXIM Bank with Padma Bank to form a new entity, but that initiative was halted due to political changes.
FY2025-26: Budget Highlights
The government plans to borrow BDT 1200 billion in new long-term debt from the domestic banking system and repay BDT 160 billion in short-term loans. Thus, the net borrowings from the banking system will increase by BDT 1040 billion.