The World Bank agency is expected to provide loan guarantees worth up to $1 billion to Dhaka

October 30, 2023 | | Banking, Finance, International

Summary: The Multilateral Investment Guarantee Agency (MIGA) is considering providing guarantees for short-term trade finance facilities to Bangladesh for essential imports. The guarantee amount could range from $500 million to $1 billion. This move comes after the government was not interested in MIGA's previous offer of a $1 billion guarantee at a 6% interest rate six months ago. Content: International commercial lenders... Read More

The stability of the financial sector is at risk due to High amount of defaulted loans: BB report

October 30, 2023 | | Banking, Finance, Corporate

Summary: The Bangladesh Bank report warns that the financial sector's stability is at risk due to the increasing number of non-performing loans. On October 5, the quarterly report for April-June 2023 was published by the central bank, in which it made the observation. Content: The report reveals that the gross NPL ratio to total loans increased from 8.8% in March 2023 to... Read More

Loan write-offs have increased by over three times during the first six months of 2023

October 29, 2023 | | Banking, Finance, Corporate

Summary: In the first half of this year, banks wrote off loans three times more than the same period in the previous year. This indicates that banks are facing a growing number of defaults and financial challenges from borrowers, which could have serious implications for the overall stability of the banking industry. Content: Defaulted loans are on the rise due to a... Read More

The number of default loan breaks all the past records in Bangladesh

December 8, 2022 | | Banking, Finance, Covid-19

Summary The economic crisis moment is started with the Covid-19 Pandemic, during that time the economic strategy collapsed globally. After the concession made in the collection of bank loans was withdrawn due to Covid-19, loan defaults began to rise, and in the last nine months the rising amount of BDT 31, 122 crores, despite the abundance of available facilities. Content Given the... Read More

BB orders to tighten monitoring to stop crypto currency transactions

November 24, 2022 | | Banking, Finance, Commercial

Summary  The Bangladesh Bank has ordered to tighten observation to be additional cautious to prevent group action and alternative activities relating to cryptocurrencies together with bitcoin. Content The Bangladesh Bank has asked scheduled banks to not provide any support services concerning transactions of cryptocurrencies and to strengthen their observation capability to stop any such activities. The BB on weekday issued a circular during... Read More

A money changer cannot hold more than Tk 50 lakh at a time.

November 24, 2022 | | Banking, Finance, Commercial

SUMMARY Bangladesh`s central bank has made it clear how much cash money changers are allowed to keep. Money changers that deal in foreign cash currency in the domestic market may hold a maximum of Tk 50 lakh on hand. The country's reserves have been dropping, and banks have been experiencing a shortage of liquid dollars. CONTENT  According to a directive provided in... Read More

BB eases rules on loans to exporters

November 24, 2022 | | Banking, Finance, Commercial

SUMMARY  The Bangladesh Bank (BB) eased conditions on single borrowers and large loan exposure limits. Restrictions will not apply in case of credit facilities provided to the government or against government guarantees. The circular will come into force immediately, according to a circular issued by the central bank. CONTENT To extend support in Industrial expansion and guarantee competitive financing, the Bangladesh Bank... Read More

Bangladesh Bank suggests Banks take insurance coverage

May 22, 2022 | | Banking, Finance, Corporate

SUMMARY: The banks have been advised by the Bangladesh Bank to take insurance coverage against their financing to exports in an attempt to cut down menace of loans. CONTEXT:  The central bank published a circular to encourage banks to secure their financing through insurance coverage under credit guarantee strategy which is locally accessible from insurance companies. This will provide banks with... Read More

Biggest FDI in the offing for Shipbuilding

March 12, 2022 | | Capital Market, Finance, Shipping

SUMMARY: The government will soon embark on an alliance with foreign investors with the intent to lay the foundations of a shipbuilding facility. The government of Bangladesh is just one step away from attaining its colossal objective to construct a state-of-the-art shipyard with the biggest foreign direct investment (FDI) of $1.58 billion. This tremendous plan of action will be carried... Read More

BSEC asks 64 firms to comply with adequate capitalization

January 5, 2022 | | Capital Market, Finance, Corporate

Summary: BSEC has requested plans from 64 companies on how they intend to meet the compulsory minimum paid-up capital of 300mn as per the listing regulation of the Dhaka Stock Exchange and to be saved from being transferred to the SME platform. Content: Earlier in September 2021, the commission constituted a committee to examine the overall health of such enterprises and to... Read More

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