The sales of saving all types of savings certificates which remained suspended since last Thursday due to software upgrades are likely to resume on Thursday. Savings Certificate Director of the Department of National Savings (DNS) Mohammad Shariful Islam told UNB that the software upgrade work is underway and it will take one or two more days.  He said that all types of activities including sales will start from next Thursday. Savings certificate sales suspended amid server upgrade; customers frustrated The service was scheduled to resume after 12 noon on Monday but the upgrade work was not completed. Roknuzzaman, Director of Bangladesh Bank's Motijheel Office, said that DNS is looking into the matter. The unexpected suspension has caused significant inconvenience to savings certificate customers, including both men and women, many of whom expressed their annoyance at the lack of timely communication. Visitors reported being informed only upon arrival that services were unavailable, despite receiving assistance at the helpdesk with filling out forms.  

The Managing Directors (MDs) of six crisis-hit banks have been placed on compulsory leave to facilitate an international audit, as instructed by Bangladesh Bank (BB), officials said. The directive is aimed at shariah-based banks owned by S Alam Group. First Security Islami Bank (FSIB) has already acted on this instruction, sending its MD, Syed Wasek Md Ali, on forced leave for the next three months. The decision was made in an emergency meeting of the bank’s board of directors on Saturday (January 4). Mohammad Abdul Mannan, FSIB’s chairman, confirmed the development. The bank’s Additional Managing Director, Abu Reza Md. Yahia, has been appointed as acting MD. Five more banks are on the central bank’s list for similar actions. These are Union Bank, Global Islami Bank, Exim Bank, ICB Islami Bank and Social Islami Bank. The process of sending their MDs on leave is currently underway. Banks in Bangladesh faced catastrophic year in 2024 amid liquidity crisis An official from BB revealed that an emergency meeting with the boards of directors of these banks was held last Thursday (January 2). Bangladesh Bank spokesperson Husneara Shikha said, "The decision for the six bank MDs to remain on leave is a collective resolution by the respective banking boards. Bangladesh Bank will conduct audits and asset quality reviews on these six banks.” This measure, she said, aims to prevent the managing directors from making undue interventions during the process. “The leave is temporary at this stage. If they are found innocent after the audit, they will be allowed to resume their roles without any restrictions. However, if irregularities are detected, appropriate actions will be taken following due regulations. This decision by the central bank aligns with international practices." During the meeting, the central bank ordered the removal of senior officials, including MDs closely associated with S Alam Group, to ensure a transparent investigation and further necessary actions. In compliance with these instructions, FSIB’s board promptly convened and decided to send its MD on leave. Many struggling banks recovering: Bangladesh Bank Governor Meanwhile, Social Islami Bank, which has recently been freed from S Alam’s control, has scheduled an emergency board meeting for Sunday (January 5). Similar changes to the leadership of the other banks are anticipated soon. Mohammad Abdul Mannan, who took over as chairman of FSIB on September 1 following a BB-led restructuring of the board, said the move aligns with efforts to reform the banking sector. He replaced Saiful Alam Masud, head of S Alam Group, who previously chaired the bank. Mannan himself was removed from Islami Bank in 2017 after S Alam took control. A chairman of another affected bank, speaking on condition of anonymity, said, “The MDs who served during the period of corruption will be sent on leave temporarily, enabling international audit organisations to work impartially through the central bank.” This decision was reportedly taken on the recommendation of the Banking Task Force, formed to drive reforms in the sector.

As the country’s foreign exchange market is facing turmoil due to surging dollar demand, Bangladesh Bank has come up to identify key causes and implement corrective measures, according to officials. To stabilise the situation, they said, Bangladesh Bank has taken the following steps: Exchange Rate Cap: The bank has set a maximum exchange rate of Tk 123 per dollar for remittance collection. For cross-currency transactions, the calculated rate cannot exceed this limit. BB drafting separate rules for Islamic banking; ‘bankers divided’ Data Monitoring System: A dashboard has been implemented to monitor market data closely, ensuring greater transparency and control. The central bank’s measures aim to alleviate the current crisis and restore stability to the dollar market. According to the officials, the central bank attributed the ongoing dollar market volatility to several interconnected factors. Number of Tk 1 crore and above account holders drops after political changeover: BB report The central bank says one major cause is the increased demand for dollars at the end of the financial year. December often sees a spike in loan repayments and other financial obligations, creating added pressure on the foreign exchange market. Compounding this is the central bank’s recent suspension of dollar sales to meet IMF-mandated targets. This decision has restricted the supply of dollars in the interbank market, further widening the gap between demand and supply. Besides, Bangladesh’s downgraded credit rating has disrupted correspondent relationships with foreign banks. This has made it more challenging to issue UPAS (Usance Payable at Sight) letters of credit, defer payment maturities, and maintain the inflow of offshore banking loans. The situation has been aggravated by a directive from Bangladesh Bank mandating the repayment of foreign debts by December, adding additional pressure to the market. Another significant factor is the role of aggregators and intermediaries in remittance collection. Their monopolistic practices have destabilised exchange rates, contributing to the ongoing turmoil. A mismatch in dollar inflows and outflows by commercial banks has further complicated the situation, exacerbating instability in the dollar market.

Personal loans are a great option for those looking to make a big financial decision in their life. It could be buying a new car, planning a wedding, going on a vacation abroad, paying for higher studies, or getting a new home. Personal loans offer secured debt consolidation as they cover tons of financial needs. While taking out a personal loan is pretty straightforward, you should consider some key aspects before going for one.  Things to Consider Before Taking Out a Personal Loan from a Bangladeshi Bank  Purpose of the Loan  Personal loans are mostly taken as a form of investment source. It can be debt consolidation or a major investment for future benefit. Regardless, a loan means incurring a liability until it is paid off. It is important to properly assess whether taking the loan is a feasible decision or not.  It is also important to consider alternative funding sources like personal savings, emergency funds, or borrowing from family.  Interest Rate One of the prime things to consider is the interest rate accrued to the loan capital. Currently, Bangladesh Bank has a regulation in place that outlines the upper limit that can be charged by the banks. The Bangladesh Bank interest rate regulation can be checked from the lending rate of scheduled banks (https://www.bb.org.bd/en/index.php/financialactivity/interestlending). Read more: Top 10 Strongest Currencies in the World as of May 2024 Additionally, a borrower can use websites like aamartaka.com to compare the rates among banks, check eligibility criteria, and even apply through their designated channels. Understand the Eligibility Criteria  The first thing to consider while applying for a personal loan is to understand the eligibility criteria. Personal loans can come in both secured and unsecured options. Granted that the unsecured options will incur a higher interest rate.  However, most banks require a set of eligibility criteria for one to apply for a loan. For example, the valuation of collateral against the loan or the liquidity level of the applicant. Other aspects like personal history verification, job verification, income, and salary credit account can also be the eligibility criteria depending on the lender. Another key aspect is the history of bankruptcy or loan default which might disqualify a person from applying for a personal loan.  Have a Good Credit Rating  A credit history is one of the key determinants of loan disbursement abroad. One can’t even apply for a credit card without a stable credit rating, let alone a personal loan. Credit rating determines the creditworthiness of an individual, that is how likely they are to repay a loan based on previous credit history.  Read more: How to Buy Bangladesh Government Treasury Bond: Everything You Need to Know There are several credit scoring systems globally like FICO score and VantageScore. However, in the case of Bangladesh, the banks and NBFIs do not follow a set credit score while approving loans. Alternative credit scoring like asset ownership, utility payments, device data, and rental payments are taken into consideration. It is mostly because a large portion of the demographic is unbanked or underbanked to make credit scoring the sole determinant for loan approval. 

The women employment in the banking sector increased by 1407 in July-December period of 2023, and the overall perrcentage of women employees at banks stood at 16.37 percent in Bangladesh. Meanwhile just 13.51% of board members in the banks are women.  Bangladesh Bank’s (BB’s) latest report on gender equality revealed this information. There are 33346 women employees in 61 banks in the country, which is 16.37 percent of the total employees of banks, according to the report. The BB report shows that among the scheduled banks in 2023, 43 private commercial banks have the highest number of women employees 22,248, which is 16.32 percent of the total employees. Foreign commercial banks have the highest proportion of female officers, 24.18 percent as compared to other banks. In the period July-December 2023, the participation of women as board members was only 13.51 percent. Among them, foreign commercial banks have the highest female board member participation rate at 17.54 percent. Read more: Bangladesh's women empowerment showcased in Myanmar On the other hand, there is no participation of women board members of specialized commercial banks in the discussed period. According to the reports submitted by banks during the period July-December 2023 shows that the participation rate of women employees is higher at the entry-level 17.04 percent and mid-level 15.79 percent than at the higher levels 9.36 percent. Analysis of the obtained data shows that the participation of women in the banking sector is high at the initial stage. At the same time, the participation rate of female employees under thirty years of age 20.99 percent is more than double that of female officers above 9.58 percent in scheduled banks. Bangladesh’s place has improved by 12 steps in the gender gap report of the World Economic Forum (WEF) in 2023, as women's employment increased in the country. The BB report shows that Bangladesh is holding the 59th position in 2023 improving from 71st in 2022 in the gender gap of WEF, among 146 countries in the world. Read more: PM Hasina keen to create more scopes for women in every sector: Nasrul Hamid Executive Director of CDP Dr. Fahmida Khatun said that women's employment is usually increasing with the developing socio-economic scenario of the country and decreasing the ratio of women's employment does not match that calculation. She focused on the need to study why the ratio of women employment has been decreasing in the banking sector. Bangladesh Bank’s spokesperson Mezbaul Haque told UNB that women's employment has increased in the banking sector following the central bank’s policy to reduce the gender gap in banks and financial institutions. The central bank prefers women both in employment and entrepreneurship development. Loan disbursement and interest incentives have been given to women encouraging them involved in financial inclusion. The BB is still working to ensure a sound environment in the workplace of banks. Facilities including maternity leave and daycare opportunities for women’s employees have increased, he said. Read more: Proven Passive Income Ideas for Women in 2024

An official of the Ministry of Finance on Thursday said that 24 banks have agreed to issue bonds worth Tk 5,665 crore to help the government pay money to the owners of private power plants. The government owes more than $2 billion or around Tk23000 crore to the private power plants as bills. Bangladesh should discuss issues related to trade benefits at WTO ministerial conf: speakers at a seminar The government is unable to pay the money because of the financial crisis. As a result, the power plants are not able to pay the money taken from banks as loan. Many of such loans provided to those power plants have been defaulted. To deal with the situation, bonds of Tk 12,000 crore will be issued against the loans taken by the power plants, an official said on condition of anonymity. Bangladesh is doing well in IMF terms: Finance Minister Already, 24 banks have agreed to issue bonds worth Tk 5,665 crore, the official said, confirming that an MoU agreement has been signed in this regard in the Ministry of Finance on February 6. A letter may be sent to the Bangladesh Bank from the Financial Institutions Division, Ministry of Finance for issuing bonds this week. Electricity demand may rise to about 17,500 MW in coming summer: Nasrul After that, the Bangladesh Bank will issue this bond in 3-4 working days, the official said.

A Dhaka court today (July 24, 2023) indicted 16 people, including BUET Professor Nikhil Ranjan Dhar, in a case filed over the question paper leak of bank recruitment examination in 2021. Dhaka Additional Chief Metropolitan Magistrate Md Tofazzal Hossain passed the order to frame the charges against Nikhil Ranjan Dhar and 15 others. Before that, the magistrate dismissed the petitions submitted for discharging Nikhil and others from the charges in the case. Read: Bank recruitment question leak: BUET professor Nikhil show caused by authority The recruitment test for five state-owned banks was held on November 6, 2021. Sub-inspector Sukant Biswas of Tejgaon Zonal Team filed a case at Badda Police Station under the Public Examinations (Offences) Act following the question leak on November 10 the same year. On November 21 that year, BUET removed Prof Nikhil Ranjan Dhar from the post of head of Industrial and Production Engineering Department and also relieved him of all exam responsibilities. In December, 2021, BUET authorities asked Nikhil to explain his involvement in leaking the questions of recruitment exam for five Banks. Read: Appellate Division orders Dr Yunus to pay NBR Tk 12 crore tax on donations On November 16, 2022, Shamim Ahmed, a sub-inspector of the Detective Branch (DB) and the investigation officer of the case, submitted the charge sheet excluding Prof Nikhil as an accused. Earlier this year, a Dhaka court summoned the investigation officer to show cause why and how he relieved Prof Nikhil from the charges. Following that, investigation officer Shamim submitted a supplementary charge against Nikhil to the Chief Metropolitan Magistrate's Court of Dhaka.

The defaulted loans in the banking sector climbed by about Tk10, 954 crore to Tk1,31, 621 crore in the January-March quarter. According to Bangladesh Bank (BB) the defaulted loans increased by 9 percent from three months ago and 16 percent from a year earlier. Despite different initiative of the central bank, defaulted loans is on a rising trend, which is becoming challenging and a headache, the BB Governor said recently in a conference Association of Bankers Bangladesh (ABB).   In comparison, the default loan figure stood at Tk1,20,656 crore in December 2022. Also Read: Market-based interest rate, unified exchange rate from July: Bangladesh Bank The defaulted loan volume surged in post Covid-19 period while the businesses abstained from repaying loan installments citing poor business. During the pandemic the central bank announced a moratorium on regular repayment of loans that helped a large number of borrowers from becoming defaulters. After withdrawal of the moratorium facility, the defaulted loan volume increased by over Tk 1.20 lakh crore in December last year. Former governor of BB Dr. Salehuddin Ahmed told UNB that a group of businesses is becoming defaulters willfully and the central bank has to be strict with such people. Also Read: IMF-Bangladesh Bank meeting prioritizes unified exchange rate and competitive lending rate He said for lack of good governance, some organized groups have taken more money as loans than their ability, which is a reason behind surge in defaulted loans.

An intelligence team of Dhaka Metropolitan Police (DMP) has arrested three more people including the mastermind, from Dhaka and Netrakona districts in connection with the robbery of Tk 11.25 crore of a bank from a private security agency’s vehicle in Turag area of Uttara in the capital. They also recovered Tk 58.7 lakh from thir possession. The arrestees are Mohammad Hridoy, 21, Mohammad Milon Mia, 29 and Akash, the mastermind of the robbery incident. Tipped off, a team of intelligence team of DMP conducted separate drives in Karail slum of Banani area in the capital and Durgapur upazila of Netrakona district and arrested them, said a press release issued by deputy commissioner of police (media and public relations) of DMP, Faruk Hossain. With this, 11 people have been arrested and Tk 7.1 crore recovered so far. Also Read: Tk 2.53 crore more recovered , 8 arrested over Uttara robbery During interrogation, it was known that, among the robbers, Akash and Sohel Rana made the plot of the robbery incident and a number of people divided into different groups committed the robbery, the release added. Sohel Rana, now fugitive, was a driver of Money Plant Link Limited, a private security agency, and he knew well about the  movement of the vehicle. The robber gang took the control of the vehicle on that day without any obstruction, it said. During interrogation, police came to know that the members of the gang were collected from Sunamganj, Sylhet, Netrakona, Gopalganj and Barishal. After the robbery, they took their share and managed to flee the scene, the release said. Akash and Sohel took a lion share of the money. Robbers looted cash money worth Tk 11 crore cash from a vehicle of Money Plant Ltd while it was going to refill money at the ATM of Dutch Bangla Bank in Savar, in Turag area of Uttara in the capital. Earlier, on Saturday, the intelligence teams recovered over Tk 2.53 core more and arrested eight people from Dhaka, its adjacent areas and Sunamganj. A private car, used in the robbery, has also been seized, it said.        

Asian shares mostly fell Monday, shaken by a Wall Street tumble that set off worries the biggest United States bank failure in nearly 15 years might have ripple effects around the world. But the falls were relatively subdued because of reassurances from U.S. officials that financial shocks would be mitigated. Japan's benchmark Nikkei 225 slipped 1.6% to 27,685.86 in morning trading. Australia's S&P/ASX 200 lost 0.3% to 7,125.90. South Korea's Kospi shed 0.4% to 2,385.25. Hong Kong's Hang Seng rose 1.4% to 19,594.07. The Shanghai Composite rose 0.3% to 3,238.98, as Chinese shares tracked a gain in U.S. futures. Dow futures were up 1.1% at 32,516.00. S&P 500 futures rose 1.4% to 3,952.50. The recent developments in Chinese politics have also worked as a stabilizing factor. Major posts, including the governor of the Bank of China, as well as other political leaders, were announced, signaling a continuation of policy. Also Read: Startup-focused Silicon Valley Bank becomes largest bank to fail since 2008 financial crisis Before trading began in Asia, the U.S. Treasury Department, Federal Reserve and FDIC said Sunday that all Silicon Valley Bank clients will be protected and have access to their funds and announced steps designed to protect the bank’s customers and prevent more bank runs. Regulators closed Silicon Valley Bank on Friday amid a run on the bank, which was the second-largest U.S. bank failure, behind the 2008 failure of Washington Mutual. They also announced Sunday that New York-based Signature Bank was being seized after it became the third-largest bank failure in U.S. history. Following two bank failures, worries about financial stability and liquidity concerns were dominating the market landscape, said Stephen Innes, managing partner at SPI Asset Management in Hong Kong. He said traders made nervous by the weekend's news could create “a ready-aim-fire Monday open.” “With the market likely headed for a more turbulent period with US inflation on a collision course with Bank ‘theater of tragedy,’ now is probably not the best time for investor euphoria," Innes said. But the sense that U.S. authorities were taking some steps to limit “the contagion effect” had somewhat of a calming effect, although “markets remain skittish” in Asia, said Venkateswaran Lavanya at Mizuho Bank. Shares had tanked Friday on Wall Street, with the S&P 500 dropping 1.4% to cap its worst week since September. The Dow Jones Industrial Average fell 345 points, or 1.1%, while the Nasdaq composite sank 1.8%. The S&P 500 fell 56.73 points to 3,861.59. The Dow lost 345.22 to 31,909.64, and the Nasdaq dropped 199.47 to 11,138.89. Some of the sharpest drops on Wall Street last week came from the financial industry. First Republic Bank tumbled 14.8%, while Charles Schwab lost another 11.7% after dropping 12.8% Thursday. Larger banks, which have been stress-tested by regulators following the 2008 financial crisis, held up better. JPMorgan Chase rose 2.5%. In Tokyo trading, banking issues were sold, with MUFG Bank falling nearly 4%, echoing such falls on Wall Street. Shares in Mitsui Sumitomo Financial Group dipped 4.7% in morning trading. Worries were growing recently that interest rates are set to go higher than expected after the Fed Reserve said it could reaccelerate the size of its rate hikes. The Fed is focusing on wage growth in particular in its fight against inflation. It worries too-high gains could cause a vicious cycle that worsens inflation. Traders now largely expect the Fed to stick with a modest 0.25 point hike. Last month, the Fed slowed to that pace after earlier hiking by 0.50 and 0.75 points. The Fed has already raised rates at the fastest pace in decades and made other moves to reverse its tremendous support for the economy during the pandemic. In energy trading, benchmark U.S. crude lost 26 cents to $76.42 a barrel. Brent crude, the international standard, fell 35 cents to $82.43 a barrel. In currency trading, the U.S. dollar fell to 134.40 Japanese yen from 134.96 yen. The euro cost $1.0694, up from $1.0643.