United News of Bangladesh

Asian stock markets mostly advanced on Wednesday, tracking record gains on Wall Street, while global oil prices slipped amid easing market concerns. South Korea’s Kospi index led regional gains, jumping nearly 5% to a record high as strong buying in technology and semiconductor stocks continued. Taiwan’s main index also surged, driven by optimism around artificial intelligence (AI) demand. In Japan, the Nikkei 225 rose 1.3% to 65,816.62, briefly crossing the 66,000 mark during intraday trading for the first time. Shares of major chip-related companies such as Tokyo Electron and Advantest rose sharply. The rally in Asian tech stocks followed a strong performance in the United States, where Micron Technology jumped nearly

Hours after the resignation of Professor M Zubaidur Rahman, Bangladesh Bank (BB) has appointed its former Deputy Governor, Md. Khurshid Alam, as the new Chairman of Islami Bank Bangladesh PLC. The central bank communicated the decision via an official letter sent to the private sector bank late tonight (Sunday). Bangladesh Bank eases refinancing terms for state-owned, specialized banks to boost CMSME loans However, the appointment has triggered deep resentment and widespread questions among Islami Bank officials over corporate governance. Officials pointed out that Alam was forced to step down from the central bank in August 2024 following pressure from central bank staff due to his controversial role during the previous Awami League regime. "Khurshid Alam enjoyed numerous privileges during the Awami League's tenure and facilitated controversial business groups. How can the central bank ensure good governance by placing such an individual at the helm of Islami Bank?" an official questioned on condition of anonymity. When contacted, Khurshid Alam confirmed the development, stating that he initially received a phone call from the central bank before being formally served the appointment letter. Central bank sources revealed that the appointment was made under direct instructions from BB Governor Mostakur Rahman, following a recommendation from a certain quarter of the government. Defending the decision, Bangladesh Bank Spokesperson Arif Hossain Khan said, "He was forced to resign back then through 'mob justice' following the regime change. However, no formal allegations orfinancial irregularities were found against him. Therefore, he has been appointed as the Chairman of Islami Bank." Khurshid Alam was initially appointed as the Deputy Governor of Bangladesh Bank on a three-year contract in February 2024 by the then government. Following the political transition in August 2024, he, along with three other top central bank officials, was forced to resign. Alam completed his post-graduation and MBA from the Faculty of Business Studies at the University of Dhaka and joined Bangladesh Bank as an Assistant Director in 1988. Over his long career, he worked in vital departments of the central bank, including Banking Regulation and Policy, Bank Inspection, Financial Institutions and Markets, Off-site Supervision, and the SME & Special Programmes Department. He hails from Bancharampur upazila of Brahmanbaria district.

Bangladesh Bank (BB) has relaxed the participation criteria for state-owned commercial and specialized banks under its refinancing facilities, a move aimed at accelerating the flow of credit to the Cottage, Micro, Small, and Medium Enterprise (CMSME) sector. The SME and Special Programmes Department of the central bank issued a circular to this effect today (Sunday). According to the circular, the decision was taken to enhance the contribution of the CMSME sector to national economic growth and to expand employment opportunities at the grassroots level. Bangladesh Bank unveils Tk 60,000cr stimulus package to revive economy, create 2.5m jobs Under the new directive, state-owned commercial and specialized banks can now enlist as participating financial institutions to access the central bank's CMSME refinancing funds. To facilitate this, the central bank has exempted these state banks from two mandatory conditions that previously restricted their eligibility. The relaxed conditions include the obligation to maintain the non-performing loan (NPL) or classified investment ratio within a maximum cap of 20 percent, mandatory adherence to Bangladesh Bank’s prescribed Capital Adequacy Ratio (CAR), Cash Reserve Ratio (CRR), and Statutory Liquidity Ratio (SLR). By waiving these stringent capital and asset-quality thresholds, the central bank aims to utilize the vast rural and semi-urban network of state-run banks to channel low-cost funds directly to small and marginalized entrepreneurs across the country, BB officials said.

The government has taken comprehensive measures to ensure security and smooth trading at cattle markets across the country ahead of Eid-ul-Azha, including the installation of counterfeit currency detection machines and on-site banking services, Fisheries and Livestock Minister Mohammed Aminur Rashid said on Sunday. Speaking to reporters after inspecting the Diabari cattle market in the capital, he said fake note detector machines have been installed at cattle markets to prevent the circulation of counterfeit currency during the busy Eid trading season. The minister said dedicated banking services have also been arranged at markets, enabling sellers to deposit their earnings safely or open bank accounts instantly to secure their money. Responding to a question, he said the country has an adequate supply of sacrificial animals and this year's Eid demand can be fully met through locally reared livestock. “The number of cows, goats and buffaloes produced by domestic farmers and ranchers is more than sufficient to meet national demand.” Addressing concerns over missing or stolen animals at cattle markets, Aminur said administration officials, law enforcement agencies and volunteer teams are working round the clock at major markets. He said measures such as announcements through loudspeakers, strict monitoring and dedicated assistance cells have been put in place, adding that in most cases missing animals are being quickly traced and returned to their owners. On the issue of illegal cattle inflow through borders, the minister reiterated the government's zero-tolerance stance in this regard. He said necessary directives had already been issued to border guards, local administration and law enforcement agencies during an inter-ministerial meeting held ahead of the Eid season. When asked about cattle prices, Aminur said the country's livestock trade still largely depends on bargaining based on an animal's health, size, build and appearance, which often leads to price variations among similar-looking animals. He suggested introducing a live-weight pricing system in the future to make transactions more transparent and standardised. The minister also ruled out the possibility of market manipulation, saying the large number of buyers and sellers participating in cattle markets makes it difficult to form any artificial syndicate. “Animal prices are determined by market competition and the forces of supply and demand.” He further said adequate personnel have been deployed to maintain discipline, security and smooth transactions at cattle markets in the capital and elsewhere in the country, and that the measures will remain in force until Eid day. Director General of the Department of Livestock Services Md Shahzaman Khan and Director Dr Md Bayzer Rahman were present during the visit.

Bangladesh Bank (BB) on Thursday issued a set of directives to all banks, Mobile Financial Services (MFS) providers, Payment Service Providers (PSPs), and Payment System Operators (PSOs) to keep banking and digital transaction systems fully operational during the upcoming Eid-ul-Azha holidays. The central bank issued a circular in this regard on Thursday, describing the matter as "highly important" to ensure hassle-free transactions for customers. According to the circular, financial institutions must maintain uninterrupted services across automated teller machines (ATMs), point of sale (POS) terminals, QR codes, internet banking, online e-payment gateways, and MFS platforms throughout the holiday period. The central bank directed banks to ensure 24/7 services at all ATM booths. Financial institutions must promptly resolve any technical glitches that may arise. The BB also emphasized maintaining an adequate supply of cash and ensuring round-the-clock security at the booths, suggesting that bank officials inspect ATM facilities if necessary. While POS and QR code-based transaction systems must remain active at all times, the central bank ordered operators to raise awareness among merchants and customers to prevent fraudulent activities. To bolster security for internet banking and online e-payment gateways, the central bank has made Two-Factor Authentication (2FA) mandatory. This security measure must be strictly enforced, particularly for "Card-Not-Present" (CNP) online transactions. Additionally, receiving banks have been instructed to credit customer accounts immediately upon receiving settlement reports for transactions featuring the '85' branch code. MFS providers have been asked to maintain seamless operations and ensure a sufficient supply of cash at agent points. Bangladesh Bank also instructed them to take necessary preparations to manage the surge in transaction volumes typical of the festive season. The circular states that customers must be notified instantly via SMS alerts for all types of electronic transactions. To prevent any form of customer harassment or distress, financial institutions must operate a 24/7 customer helpline. Furthermore, the central bank advised running awareness campaigns in the media to safeguard digital transactions and prevent fraud. The circular noted that all previous guidelines issued by the department regarding holiday operations must also be strictly followed.

The government has introduced a newly designed Tk 5 currency note under the theme “Historical and Archaeological Architecture of Bangladesh,” which will enter circulation from Tuesday. According to a press release issued by the Finance Division, the new note bears the signature of Finance Secretary Dr Md Khairuzzaman Mozumder and will initially be available from the Motijheel office of Bangladesh Bank before being distributed through its other offices across the country. The new Tk 5 note measures 117 mm by 60 mm and features an image of Tara Mosque in Dhaka on the left side of the front panel. The middle portion carries a background design with Bangladesh’s national flower, the water lily, including leaves and buds. The reverse side of the note contains an image titled “Graffiti-2024.” The note has a predominantly light pink colour scheme and includes several security features. These include a 2 mm-wide embedded security thread visible from both sides when held against light, and a watermark showing the face of a Royal Bengal Tiger along with a bright electrotype watermark marked “5” and the monogram of the Government of Bangladesh. In addition, the front side contains repeated microprinted “BANGLADESH” text above the bluish guilloche pattern at the lower portion of the note. The Finance Division said all existing paper notes and metallic coins currently in circulation will remain valid alongside the new Tk 5 note. Considering the interest of currency collectors, Bangladesh Bank has also printed non-exchangeable specimen notes of the new Tk 5 design. These can be collected at a fixed price from the Bangladesh Bank Currency Museum in Mirpur.

Scheduled banks across the country will remain closed for seven consecutive days – from May 25 to May 31 – on the occasion of Eid-ul-Azha, according to Bangladesh Bank (BB). The central bank issued a notification on Monday stating that in accordance with the Ministry of Public Administration’s notification, all branches and sub-branches of scheduled banks will operate under normal working hours on May 23 (Saturday) and May 24 (Sunday), right before the holidays begin. Govt to cut bank borrowing in FY27 to spur private credit, curb inflation However, special arrangements have been made to facilitate the payment of salaries, bonuses, and other allowances to garment workers, as well as to keep import and export activities active ahead of the festival. To support this, bank branches located in garment-industrial zones, including Dhaka city, Ashulia, Tongi, Gazipur, Savar, Bhaluka, Narayanganj, and Chattogram, will remain open on a limited scale on May 25 and 26. According to the BB directive, during those two days, the office hours for these specific branches will be from 10:00am to 3:00pm, while transactions will be conducted from 10:00am to 1:00pm. Furthermore, bank branches, sub-branches, and booths situated in sea port, land port and airport areas have been directed to keep import-export activities functional on a limited scale. The central bank instructed the relevant desks to continue essential banking operations throughout the holiday period (from May 25 to May 31, excluding Eid day.

Hossain Zillur Rahman, former adviser to the caretaker government, on Saturday warned that the ongoing downfall of the economy cannot be arrested unless the deep-seated crisis in the banking sector is effectively resolved. He made the observations while speaking as the chief guest at a seminar titled "Disaster in the Country's Banking Sector; Context of Islamic Banking Sector: Impact on National Economy and Way Forward." Organized under the banner of the ‘Bank Customer Forum’, the seminar was held at the CIRDAP auditorium in the capital, aiming to bring together Islamic Bank customers and sector insiders. SACIN begins journey to advance circular economy across Asia in Dhaka Emphasizing that political will is crucial for a turnaround, Dr. Zillur noted that political influence heavily dictates economic decisions. He strictly questioned why new provisions are being introduced into laws to facilitate the return of those who are responsible for creating the crisis in the finance sector. During the discussion, some speakers went as far as to propose that the photographs of those who plundered the banking sector should be publicly displayed in museums. Former Vice President of FBCCI Abul Kashem Haider delivered the welcome address at the event, while Mizanur Rahman, a researcher, presented the keynote paper. In his keynote speech, Hossain Zillur Rahman stated that while opinions vary regarding the current state of the economy, there is an absolute consensus on six core challenges that demand sustainable solutions. These are a major disaster has unfolded in the economy, corrupt policy-making processes have accelerated the economic crisis, which continues unabated, depositors are silently enduring immense suffering, the economy remains stagnant; its wheels have stalled, investments have dried up, and unemployment is on the rise, ongoing national transition presents a vital opportunity to solve this deep-rooted crisis, and a sustainable solution is urgently required, one that must be held to the highest standards of morality. Dr. Zillur highlighted that many citizens are currently unable to withdraw their deposited money from banks, a critical issue that must be addressed immediately to ensure consumer stability. While noting that Bangladesh Bank is currently working on the issue, he stressed the need to monitor whether the regulator can maintain its moral stance. For this to happen, the autonomy of Bangladesh Bank is absolutely essential, he added. The economist further warned that failure to tackle the rising unemployment problem would cause social unrest to spill over into other sectors. He called for timely, courageous, and sustainable decisions executed with high professionalism and capability. Urgent Call for Political Will and Reforms: Participating in the discussion, Faruq Mainuddin, former managing director of Trust Bank, asserted that the banking sector cannot be fixed without genuine political commitment. He demanded strict measures, adding that banks must segregate the losses incurred from institutional looting and move forward with a fresh balance sheet. Badiul Alam Majumdar, Secretary of Citizens for Good Governance (Sujaon), described the banking sector as the primary engine of the national economy. "When looting occurs in this sector, the entire economy collapses, which is exactly what we are witnessing today," Majumdar said. "The revelations surrounding hostile bank takeovers are shocking enough to inspire thriller movies. Even the current President was once the vice-chairman of a forcibly taken-over bank." Sharing his personal grievance as an affected depositor, the Sujon secretary noted that long queues of citizens waiting to withdraw money have now become common. He demanded exemplary punishment for the financial fraudsters. Majumdar also emphasized the need to continue the bank restructuring process, reduce reliance on physical cash, and immediately repeal the newly introduced controversial clauses in the Bank Resolution Act. Several professionals and clients of Islamic banks also spoke at the seminar. They alleged that Islamic Bank Bangladesh PLC and Social Islami Bank were forcibly taken over through orchestrated political decisions, pointing out that an enabling environment for the takeover was prepared well in advance while regulators remained silent. The speakers questioned the legal loophole that allows an entity holding a mere 2 percent stake to take over an entire bank. They also demanded an official government statement regarding the alleged controversial role played by state intelligence agencies during those takeovers. Warning against any further destabilization, the speakers declared that if Islami Bank faces another crisis, it will never recover, and this time, the depositors themselves will build a resistance to protect their interests.

In a bid to ensure transparency, accountability, and to prevent potential conflicts of interest, Bangladesh Bank (BB) has prohibited its officials and employees from participating in training programmes, seminars, and workshops funded by banks and other financial institutions. The central bank issued an office order on Wednesday, detailing strict guidelines regarding local and international events sponsored by the very entities it is tasked with regulating. The circular, issued by the Human Resources Department-2 (Training and Development Wing), outlines the following mandates. Bangladesh Bank slashes penalty interest rate to 0.5pc to boost investment No Funded Participation BB officials and employees are barred from participating as trainees or trainers in any training or workshop, domestic or foreign, funded by government or private banks, financial institutions, or other organisations. Service Provider Restrictions Personnel cannot participate in any foreign training, seminar, or workshop funded by any organisation that receives services from or supplies goods to Bangladesh Bank. Strict No-Honorarium Policy While officials may participate as trainers or speakers in domestic seminars or discussion meetings organised by banks or financial institutions—provided they have prior approval from Human Resources Department-2—they are strictly forbidden from accepting any honorarium from the organising agency. Conflict of Interest Generally, central bank staff are directed to refrain from attending any event where the acceptance of an honorarium could create a conflict of interest with the activities of Bangladesh Bank. The directive stated that these decisions were taken to maintain the integrity of the financial sector's regulatory framework. The order has been issued with the approval of the appropriate authority and takes effect immediately.

The Board of Directors of Bangladesh Bank (BB) has given primary approval to the liquidation of five Non-Bank Financial Institutions (NBFIs) that are struggling with massive loan defaults and an inability to repay depositors. The liquidation process for these institutions is expected to commence in July, according to sources privy to the decision made during a board meeting chaired by Governor Mostaqur Rahman on Tuesday. The five institutions slated for liquidation are FAS Finance, Fareast Finance, Aviva Finance, People's Leasing and Financial Services, and International Leasing and Financial Services. According to the central bank data, the non-performing loan (NPL) ratios of these institutions have reached critical levels, ranging from 93 percent to nearly 100 percent. Due to their prolonged failure to recover loans, they have been unable to honour withdrawal requests from depositors. The central bank plans to shut down these entities under the Bank Resolution Act 2026. As part of the process, it will appoint one of its directors as an administrator for each institution, assisted by two additional officials. These institutions will eventually be declared defunct. Central bank officials estimate that approximately Tk 5,000 crore will be required to return funds to individual depositors. The central bank reportedly moved forward with the liquidation decision after receiving positive assurances from the government regarding fund allocation in the upcoming national budget. The Bank Resolution Act provides a framework for the merger, restructuring, or closure of financially distressed institutions and dictates how assets should be liquidated to pay off creditors. The decision follows a lengthy review process. In May last year, the central bank issued show-cause notices to 20 NBFIs for high NPLs and failure to return deposits. Later, nine institutions with unsatisfactory recovery plans were earmarked for closure. That list was trimmed to six in January and finally to five, with Premier Leasing being excluded from the current final list. The financial health of these entities, as of December last, paints a dire picture with FAS Finance having 99.99 percent NPL ratio, International Leasing 99.44 percent, Fareast Finance 98.50 percent, People's Leasing 95 percent and Aviva Finance 93.93 percent NPL ratio. Industry insiders attribute this collapse to years of systemic irregularities, corruption, and massive loan scams. Notably, disgraced businessman PK Halder is accused of embezzling at least Tk 3,500 crore from four institutions: People's Leasing, International Leasing, FAS Finance, and BIFC.