The Anti-Discrimination Officers Forum of Bangladesh Bank has demanded the immediate resignation of two deputy governors, Nurun Nahar and Dr. Habibur Rahman, accusing them of involvement in corruption. The forum claims these officials were appointed under the Awami League government and are perpetuating malpractice in the institution. In a letter addressed to the central bank's governor, Dr. Ahsan H. Mansur, on Wednesday, said that the continued presence of these individuals—closely tied to corruption—undermines the integrity of Bangladesh Bank. The letter went on to accuse Nurun Nahar and Dr. Habibur Rahman of being "deputy governors of bank robbers," demanding that they step down to avoid further damage to the institution's credibility. Read: Bangladesh Bank server tech glitch disrupts inter-bank cheque clearing The platform also raised concerns about the upcoming "BB Night," an event organized by the Bangladesh Bank Officers Council scheduled for October 20. The forum urged Governor Mansur not to attend the event, citing it as a continuation of the council’s alleged favoritism and political bias. The forum highlighted that other high-ranking officials, including a former governor, two deputy governors, the chief of the Bangladesh Financial Intelligence Unit (BFIU), and a policy advisor, have already been forced to resign under similar allegations of corruption. Read more: Bangladesh Bank Governor has assured liquidity crisis resolution for pvt banks: Abdul Awal Mintoo

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has requested a Tk 54 crore soft loan from Bangladesh Bank to support 39 garment factories that are facing financial difficulties. These factories, which were previously operating smoothly, are now struggling to maintain full production due to disruptions caused by recent labor unrest. Bangladesh now boasts 229 eco-friendly garment factories: BGMEA BGMEA outlined these concerns in a letter to the Finance Adviser on October 6, urging the central bank to inspect the situation and facilitate the necessary loan. BGMEA has appealed to the interim government to help secure Tk 54 crore to ensure the timely payment of wages to around 56,000 workers employed at these 39 factories. The organization emphasized the urgent need for financial assistance to prevent further disruption in the industry and protect the livelihoods of thousands of workers.

Bangladesh Bank has announced that all banks across the country will remain closed on Thursday, October 10, in observance of Durga Puja, following a government-declared holiday. The Ministry of Public Administration issued an official notification on October 8, confirming the nationwide general holiday as part of Durga Puja celebrations. The holiday was announced via an executive order from the interim government. In response, Bangladesh Bank issued a separate notice through its Department of Offsite Supervision. The notice was circulated late Tuesday night, informing banks of the closure. Read: Cumilla’s Bibir Bazar land port to remain shut for six days marking Durga Puja However, bank branches, sub-branches, and booths located in key areas such as seaports, land ports, and airports will remain operational under special arrangements to ensure uninterrupted services in these crucial sectors. This holiday closure is part of the national observance of Durga Puja, a major religious festival for Hindus. Read more: Durga Puja begins

In a significant move to address the ongoing liquidity crisis in Bangladesh's banking sector, three financially stable banks have extended loan support to their weaker counterparts. This initiative is aimed at bolstering the stability of the financial system, said Bangladesh Bank Spokesperson Husne Ara Shikha on Wednesday. According to the central bank, City Bank, Mutual Trust Bank (MTBL), and Bengal Commercial Bank have collectively provided Tk 945 crore in liquidity support to First Security Islami Bank (FSIBL), Global Islami Bank and National Bank. FSIBL is set to receive some Tk 300 crore, with City Bank, MTBL, and Dutch-Bangla Bank Limited (DBBL) acting as the donating banks. Social Islami Bank Limited (SIBL) will receive a similar amount from City Bank and MTBL. Besides, Global Islami Bank and National Bank have also received their respective allocations from Eastern Bank Limited (EBL) and the previously mentioned donor banks. National Bank has received contributions from City Bank, MTBL and Bengal Commercial Bank. The liquidity injection has been initiated to support these banks in overcoming the ongoing cash crunch. Some banks are still in the process of completing necessary documentation before extending further support to other affected institutions. Ongoing Liquidity Crisis The liquidity crisis in Bangladesh’s banking sector has been a growing concern for regulators. On August 11, Bangladesh Bank imposed a limit on cash withdrawals from banks to manage the crisis effectively. However, the restriction was lifted on September 7, yet several banks continue to face liquidity shortfalls. On September 24, Bangladesh Bank published the current accounts of nine private sector banks operating with the central bank, revealing a deficit that had surged to Tk 18,167 crore. The banks listed included First Security Islami, Social Islami, National, Union, Islami Bank Bangladesh, Bangladesh Commerce, Padma, Exim and ICB Islamic Bank. This crisis has prompted swift action from both regulators and financially stable banks, emphasising the need for continued monitoring and targeted support to ensure the stability of the banking sector.

Bangladesh Bank and the interim government are undertaking significant efforts to restructure the country’s banking sector, focusing on recovering both local and foreign assets embezzled by corrupt individuals. Officials have confirmed that these assets, laundered abroad, are being targeted for repatriation as part of a broader initiative to bring the financial sector up to international standards. The government emphasized its commitment to reforming the financial sector, acknowledging that the process is complex and time-consuming. A key element of this strategy will be the establishment of a banking commission tasked with investigating each implicated bank, uncovering the full extent of the corruption, and developing an action plan, according to the Chief Adviser’s press wing. This plan, which can be implemented within six months, aims to overhaul the sector to ensure compliance with global banking norms. The aim of Bangladesh Bank and the government is to be capable of complying with all international standards and building a strong banking sector. However, international technical assistance and funding will be required from the beginning to the end of the activities to achieve this objective. Read more: Bangladesh Bank reconstitutes boards of 3 banks, inc. two controlled by S Alam Group The reforms come in response to revelations that unscrupulous businessmen and influential figures have embezzled vast sums from the banking sector, laundering the funds abroad through fraudulent activities. Preliminary estimates suggest the total embezzled amount could exceed Tk 1 lakh crore, though the exact figure is still being determined. Significant steps have already been taken, with reforms initiated in several banks linked to the scandal. The boards of Islami Bank, Social Islami Bank, National Bank, United Commercial Bank, Global Islami Bank, and Union Bank have been reconstituted as part of the restructuring efforts. Similar measures will be implemented across other affected banks and financial institutions. The government has also sought assistance from foreign agencies to track and repatriate the laundered funds. As the new management teams take control, they will be responsible for gathering accurate data on the embezzled amounts and leading the recovery efforts. Read more: Businesses agree with central bank's steps against bank robbers: DCCI

Dr. Ahsan H. Mansur, newly appointed governor of Bangladesh Bank, has said his priority will be to check the high inflation and restore stability in the financial sector.  Expressing satisfaction over his new responsibility Dr. Mansur told UNB on Tuesday night that he will work with all stakeholders in the financial sector to bring back stability and put it on a solid foundation. On Tuesday night the interim government's law ministry hurriedly waved the age limit of 67 years for anyone to be appointed as governor of the central bank. Economist Mansur is now 72 years old. The last time the age limit provision got amended from 65 years to 67 years was in July 2020 to accommodate the reappointment of then-governor Fazle Rabbi.  Read more: Money launderers won’t be allowed to sleep in peace: New Bangladesh Bank Governor He believed that despite high inflation - it hit 11.66 in July in a 13-year high- the central bank under the previous administration did not give full attention to curb it.  Controlling inflation remains a top priority for any central bank.  However, money supply, exchange rate stability, and inflation control all depend on the decision of the governor. Besides, the standard of living, international trade, investment, and employment depend a lot on the decisions of the central bank of any country, he said. Dr. Mansur started his career as a lecturer, at the Department of Economics, Dhaka University in 1976. He left for Canada for higher studies in economics the same year. As a graduate student and research assistant, he was also offering regular economics courses at the undergraduate level at the University of Western Ontario, Canada (1978-81).  Dr. Mansur joined the International Monetary Fund under its Economist Program in 1981 and thereafter completed his PhD in Economics (on general equilibrium analysis) from the University of Western Ontario in 1982. During his long career at the IMF, he worked in Middle Eastern, Asian, African, and Central American countries. He worked in important functional departments (Fiscal Affairs and Policy Review and Development departments) and area departments (Middle East and Central Asia and Asian departments) of the IMF. Read more: Inflation hits 13-year high of 11.7% in July: BBS He also served as the IMF Senior Resident Representative to Pakistan from 1998-01 and as the Fiscal Advisor to the Minister of Finance, Government of Bangladesh (1989-91).

A bank account holder can withdraw cash up to two lakh taka a day for this week given the current security situation, according to a Bangladesh Bank circular. The central bank issued the instruction to the MDs of all commercial banks through SMS on Saturday. It will be effective from Sunday, the first working day of the week. Earlier on Thursday the maximum cash withdrawal limit was set at one lakh taka.    Read more: Bangladesh Bank Governor Abdur Rouf resigns However, businesspeople can draw larger amount of cash for payment of salaries of employees ensuring security on their own, said the circular. The same is applicable for the expatriates. The central bank also asked banks to supervise that a person cannot withdraw money from multiple branches of banks in a day. This directive should be followed especially in the case of key political leaders. On Thursday, the Bangladesh Financial Intelligence Unit (BFIU) under the BB was ordered to report any amount of money withdrawn by a politically important person. The names of political leaders, bank chairmen, businessmen, secretaries, and senior police officers are on this list. Such instruction is given mainly to prevent any person from withdrawing money for criminal activity or escaping from the country. Read more: Bangladesh Bank operates without governor and deputy governors

Considering the current situation, Bangladesh Bank has instructed all banks and financial institutions to not charge any extra fees for late payment of credit card bills, and loan installments. The central bank issued a directive to banks and financial institutions in two separate notifications in this regard on Wednesday. Those who had time to pay their loan installments, credit card bills, and savings deposit installments during the curfew and public holidays can make the payments till July 31. Bangladesh Bank has said that banks and financial institutions will not collect any additional interest, penalties or late fees for installments/card bills payable between July 18 and 25. No savings scheme can be canceled due to failure to pay installment during this time. According to the central bank notification, many borrowers and credit card users have not been able to pay their dues to the banks on time due to the current situation. Read more: Offices, banks reopen for four hours; Commuters suffer amid traffic gridlock Besides, many depositors could not deposit installments of various savings schemes including Deposit Pension Scheme (DPS) on time. Under the circumstances, the new guidelines will be effective from July 18 to 25 in respect to dues of loans, credit card bills, and installments of various savings schemes including DPS. The Bangladesh Bank directive stated that if the loan and credit card dues are paid by July 31, any interest or profit and penalty interest, additional interest, excess profit, late fee on the outstanding amount will be deducted. If installments of savings schemes are paid by July 31, no late fee or penalty can be collected. Apart from this, interest or profit and penalty interest or late fee on any loan or credit card and any kind of late fee or penalty on various savings schemes that has already been collected has to be refunded or adjusted. Read more: Overcrowding and long queues as banks reopen today for only 4 hours

Bangladesh Bank has formulated a new "Exit Policy" aimed at expediting the recovery of defaulted loans. This policy allows both defaulters and non-defaulting business customers to settle their industrial loans by paying off the balance, with specific conditions attached. According to the central bank's new notification, applicants must deposit at least 10 percent of the loan amount upfront to qualify for this facility. Banks have been instructed to develop their own policies in line with the central bank's guidelines, incorporating similar conditions. Under the policy, there will be no change in the quality of the loan until it is fully repaid, and customers utilizing the exit facility will not be eligible for new loans during this period.  Read more: 'Publish list of loan defaulters in parliament': AK Azad "If a businessperson takes this facility, they must repay the entire loan within a maximum of three years. These customers will not be identified as willful defaulters," the notification stated. The central bank noted that borrowers' businesses or projects might incur losses due to uncontrollable factors, leading to hindered debt collection activities and insufficient cash flow for loan repayment. Consequently, such loans are classified as defaults but not as willful defaults. The notification also emphasized that genuine adverse financial conditions can reduce the chances of debt recovery. Therefore, there is a need for a uniform policy to facilitate debt recovery or adjustment through the exit mechanism, as banks have been following varied procedures. In this context, the new policy aims to maintain liquidity flow and reduce defaulted loans in the banking sector. Regular loan exit facilities may be granted for recovering adversely classified loans with poor recovery prospects or in cases where projects or businesses have closed due to uncontrollable reasons. Read more: Process on to prepare list of loan defaulters, finance minister tells Parliament To apply for the facility, borrowers must pay a minimum of 10 percent of the existing loan balance in one-time cash. Banks are required to settle these applications within 60 working days of receipt.

Bangladesh has received US$ 23.915 billion in remittances for the fiscal year 2023-24, ending on June 30, marking the second highest remittance inflow in a fiscal year to date. Md Mezbaul Haque, Executive Director and Spokesperson of Bangladesh Bank, told UNB that expatriate Bangladeshis sent $2.542 billion in remittances in June 2024. This brought the total remittance amount from July 1 to June 30 of FY 2023-24 to $23.915 billion, compared to $21.610 billion in the previous fiscal year. Bangladesh Bank extends Tk 5000 crore refinance scheme to support food security Remittance inflow to Bangladesh rose 15.59 percent year-on-year to $2.542 billion in June, as migrant workers sent more money home for Eid-ul-Azha. In May 2024, expatriate workers sent $2.253 billion in remittances. Sector insiders attribute this growth to the higher exchange rate of the dollar and the festive occasion of Eid-ul-Azha, which prompted expatriates to send additional remittances to their families. Economist Dr. Ahsan H. Mansur commented that Bangladesh can increase remittances through legal channels by enhancing financial and non-financial benefits for the remitters. He noted that many remitters prefer the illegal Hundi system due to its higher exchange rate, diverting legal remittances to illegal channels. Read more: How to safely send remittance to Bangladesh?