HYBRID SEMINAR ON M&A IN THE BANKING & FINANCE SECTOR

Mergers and Acquisitions (M&A) are strategic transactions where financial institutions are combined or consolidated. In a merger, two banks agree to integrate their operations into a single, new entity. In an acquisition, a larger institution acquires a majority stake in a target company, often retaining...

Regulator Raises Cyber-heist Alarm for Banks.

Summary Bangladesh Bank has issued a circular through which it tries to combat the recent increasing number of cyberattacks on the banking sector by requesting commercial lenders to implement a 17-point anti-heist measure. The central bank has overseen some illicit transactions on Facebook ad managers in...

Central Bank Nod is Not Required for Bandwidth Import Payments.

Summary Banks in Bangladesh do not require any permission from Bangladesh Bank to process import payments for internet bandwidth and other related services from now on. The central bank already issued a circular that allows banks to make payments abroad without requiring its permission. However, banks...

Startups to go public soon as BSEC modernizing IPO rules

Summary:  Bangladeshi startups who were denied the chance to go public because their business strategy called for expansion before profitability will now be able to raise funds from the stock market according to modifications of the Public Issue Rules that the securities regulator is planning. However, even when...

Central Bank wants to reduce 1% default loans through Negotiation

Summary: Rather than suing the defaulting consumers, the central bank has instructed banks to use Alternative Dispute Resolution (ADR) to collect defaulted loans. The Bangladesh Bank issued an order on May 12, 2024, requiring all banks to recover at least 1% of their defaulted loans through...

Exim-Padma Bank merger to take at least 18 months

Summary:  The planned merger of Padma Bank and Exim Bank is expected to take 18 months to 2.5 years, according to central bank authorities. The banks must submit a formal application to the Bangladesh Bank, supporting documentation, and a copy of the merger plan. The merger...

Tightening of the Appointment & Dismissal rules of bank’s MDs 

Summary  The new regulations mandate banking managing directors or CEOs to have 20 years of experience, aged 45-65, with a three-year tenure, requiring Bangladesh Bank approval for appointments. To ensure governance and depositor protection, candidates are interviewed by central banks and then assessed by a committee....

Limitations on Deposits and Troubled Banks categorized

Summary The Bangladesh Bank has recently introduced a new framework that aims to promote financial stability and maintain public confidence in the banking system. This framework categorizes troubled banks into four groups based on their non-performing loans (NPLs) and Capital to Risk (Weighted) Assets Ratio (CRAR).  Content: As...
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