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Intentional or not, a loan defaulter remains loan defaulter
Intentional or not, a loan defaulter remains loan defaulter

Bank

Intentional or not, a loan defaulter remains loan defaulter

Banking plays an extremely crucial role in the economic development of any country. Particularly in Bangladesh, where the capital market is relatively weak, the significance of banking accounts for a substantial portion of the nation's economy. Entrepreneurs in Bangladesh often need to approach banks primarily to meet the financial requirements for establishing industries, factories, and business establishments.

Bank MDs cannot resign, be sacked without central bank’s approval
Bank MDs cannot resign, be sacked without central bank’s approval

Bank

Bank MDs cannot resign, be sacked without central bank’s approval

From now on, the managing director (MD) of a bank cannot suddenly resign whenever he wishes. Bank authorities also cannot remove any MD whimsically.

Suspicious transaction increases by 65% in FY23
Suspicious transaction increases by 65% in FY23

Bank

Suspicious transaction increases by 65% in FY23

Suspicious transaction reports (STR) and suspicious activity reports (SAR) increased by 65% in the outgoing financial year. Bangladesh Financial Intelligence Unit (BFIU) released its annual report on Tuesday.

Few words about banking and financial sector reforms
Few words about banking and financial sector reforms

Bank

Few words about banking and financial sector reforms

During his address at the inaugural ceremony of the Twelfth National Parliament, President Shahabuddin Ahmed provided affirmative guidance on various subjects. Among them, he notably emphasized on the topic of banking and financial accounts. He stated, "There is a significant need for extensive reforms in financial accounts. The current state of the country's banks and financial institutions is not satisfactory at all. Therefore, economists and banking experts have been providing guidance on comprehensive reforms of these accounts for quite some time. However, it seems that the relevant ministry of the government is not giving due attention to the matter of reforming banking and financial accounts."

Checking inflation with contractionary policy a tough job
Checking inflation with contractionary policy a tough job

Bank

Checking inflation with contractionary policy a tough job

Currently, the country's economy is experiencing high inflation, posing several challenges in macroeconomic terms. Among these challenges, high inflation stands out as the most significant. To address this inflationary pressure, various initiatives have been undertaken, with notable emphasis on monetary policy. However, the recent announcement of monetary policy by the Bangladesh Bank appears to be conservative in nature. The Bangladesh Bank believes that a conservative monetary policy will play a supportive role in controlling high inflation. However, this initiative has been delayed. Furthermore, it is uncertain to what extent conservatism will be sufficient in controlling high inflation because inflation is not solely caused by one factor. There are many other factors contributing to inflation. Therefore, controlling high inflation through conservative monetary policy alone will be challenging.

Central bank issues advisory on formation of bank boards
Central bank issues advisory on formation of bank boards

Bank

Central bank issues advisory on formation of bank boards

Bangladesh Bank (BB) has issued a notification regarding the formation of a bank's board of directors, as well as prescribing the responsibilities of the directors as per the ‘Bank Company Act’.

There’s no rationality behind having so many state-owned banks
There’s no rationality behind having so many state-owned banks

Bank

There’s no rationality behind having so many state-owned banks

The honourable president has urged for the reformation of banks and financial institutions, while also providing directives for effective measures against corruption. The president rightly emphasized that at this moment, banks and financial institutions are in a delicate state. Therefore, the reformation of these sectors becomes extremely urgent.

AK Azad electec chairman of Shahjalal Islami Bank
AK Azad electec chairman of Shahjalal Islami Bank

Bank

AK Azad electec chairman of Shahjalal Islami Bank

Ha-Meem Group Managing Director AK Azad, MP, has been made the chairman of Shahjalal Islami Bank PLC (SJIB).

Inflation causing economic bleeding in Bangladesh
Inflation causing economic bleeding in Bangladesh

Bank

Inflation causing economic bleeding in Bangladesh

Bangladesh's domestic economy has been experiencing high inflation for a long time. Countries around the world started experiencing high inflation after the Russia-Ukraine war began. However, most of the countries were able to control the high inflation and bring it down to a tolerable level, but Bangladesh could not make any visible progress in this regard. Inflation has been hovering around double digits for days. Although it has come down a little at times, but the rate is not very significant. The biggest problem we have here is that inflation is not being accounted for properly. As a result, it is not possible to estimate how dire the situation is. The role of the Bangladesh Bureau of Statistics, which is the main source of all the country's data, is a government agency that plays a very important role in this regard. Because if the statistics are not correct then the real picture of the country will not be available and the plan based on those statistics can never be correct; But the reality is the organization cannot work properly as there is so much influence and direction from various quarters of the government in the formulation of statistics which cannot be ignored by the department. Various examples suggest that while compiling statistics, the officials concerned were directed that government developments should be emphasized, keeping the failures aside as much as possible.

Detrimental impact of defaulted loans on banking sector
Detrimental impact of defaulted loans on banking sector

Bank

Detrimental impact of defaulted loans on banking sector

The prevalence of non-performing loans (NPLs) in Bangladesh's banking sector is a widely discussed issue, and it is not confined to causing problems only for banking accounts. Rather, it has evolved into a complex problem affecting our national economy. About 86 percent of economic transactions in Bangladesh occur through the banking system. Consequently, if there are issues with banking accounts, these problems have a ripple effect on the entire economy. If non-performing loans in the banking sector were to reach their current levels, banks would be able to contribute more efficiently to the national economy. Many of the mega projects we are implementing could have been completed with this defaulted loan (TK 1 lakh 56 thousand 039 crore).

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