Bank-Insurance
BB relaxes IBBL deposits ‘completely safe’
Bangladesh Bank Executive Director and Spokesperson, Md Mezbaul Haque on Sunday, December 4, said that Islami Bank Bangladesh Limited (IBBL) is very important to the state, and the bank’s depositors have nothing to worry about regarding their money which means it is safe completely safe to deposit in Islami Bank Bangladesh Limited (IBBL).
‘Those who have deposited money in this bank are completely safe. Bangladesh Bank guarantees their deposits. But there are many rumors still ongoing. A good institution cannot be hindered by rumor or otherwise,” he said.
Mazbaul said this after a meeting with the Association of Bankers Bangladesh (ABB) at Jahangir Alam Conference Hall of Bangladesh Bank on Sunday afternoon.
Bangladesh Bank fully guarantees customers’ deposits at IBBL. However, there is an ongoing investigation into whether there was any irregularity or corruption at the bank.
“We can say what happened only after investigation,” he added.
Regarding ABB’s claim that the maximum interest rate of 12 percent on consumer loans has been verbally approved, he said: “We have not issued any circular in this regard.” Consumer loan interest rates are the same as in earlier rules. But if a bank talks about 12 percent then it is advance preparation. If so, we will issue a circular.”
In reply to a question on customers withdrawing deposits from Islami Bank, as IBBL is popularly known, he said that the crisis of trust has passed. Depositors are putting money back into the bank.
Besides, the trade deficit has come down a lot, and the foreign exchange crisis will go soon.
The meeting discussed several issues including the facilitation of importers’ letters of credit (LCs) to ensure the supply of essential commodities during the upcoming Ramadan.
“This has been discussed with the MDs and CEOs of the banks. Governor Abdur Rouf Talukder has instructed the MDs to provide all kinds of assistance in the import to ensure the supply of necessities during Ramadan,” Mezbaul said.
He further said that the opening of unnecessary LCs is closed. However, it has been suggested to keep the margin rate at a minimum level in the case of import financing of essential commodities during Ramadan.
In a joint decision, the Bangladesh Foreign Exchange Dealers Association (BAFEDA) and the Association of Bankers, Bangladesh (ABB) have announced a reduction of Tk 0.50 in both buying and selling rates for the dollar.
The new rates, effective from Thursday, November 23, set the purchasing price for dollars related to export proceeds and remittances at Tk 110, down from Tk 110.50. Simultaneously, the selling rate for dollars concerning import settlements has been adjusted to Tk 110.50, a decrease from the previous Tk 111. This decision, reached during a meeting in the city, comes as a revision to the rates set on October 31, when both organizations had increased the official rates for remittance and export proceeds.
Bank-Insurance
HSBC Bangladesh Hosts “Japan – Bangladesh Business Corridor” Event to Strengthen Ties
HSBC Bangladesh recently hosted a corridor event titled “Japan – Bangladesh Business Corridor: Legacy and the Future” to celebrate and strengthen the longstanding relationship between the two countries. The event brought together Japanese businesses operating in Bangladesh and various stakeholders.
Since Bangladesh’s independence, Japan has played a significant role as a bilateral development partner, contributing to trade, investment, infrastructure development, industrialization support, and social development improvements in the country. HSBC recognizes the importance of Japan’s contributions and untapped potential.
Gerard Haughey, Country Head of Wholesale Banking at HSBC Bangladesh, highlighted the evolving relationship between Japan and Bangladesh, particularly in terms of ongoing trade and investment engagements. He emphasized the opportunities for Japanese investors in Bangladesh’s rapid growth and stated that HSBC is ready to facilitate connections to a world of opportunities.
Hirotaka Shibata, Director of Commercial Banking at HSBC Japan, emphasized HSBC’s presence in Japan and its ability to provide “local” connections and knowledge to Japanese investors on both ends of the investment journey. He noted that HSBC Japan considers Bangladesh a priority corridor and is closely collaborating with HSBC Bangladesh to offer the best available services to clients.
HSBC, as a leading international bank, offers expertise in trade, payment, cash management, and project financing support services in Bangladesh. Its extensive presence in 62 countries makes it the preferred choice for foreign businesses, including Japanese stakeholders operating in Bangladesh. With its digital banking capabilities, HSBC has become the go-to bank for inbound Japanese companies, serving infrastructure and private sector investment clients and stakeholders.
The Asian Development Bank (ADB) is set to provide Bangladesh with $338 million in support of domestic vaccine production, aiming to safeguard against a range of diseases. This announcement was made during a meeting between ADB Country Director Edimon Ginting and Planning Minister MA Mannan in Dhaka.
The initiative is part of the Bangladeshi government’s effort to develop a draft project to manufacture vaccines locally, thereby enhancing protection against diseases like COVID-19 and dengue, as well as preparing for potential future health challenges. The ADB’s funding offer consists of a $338 million loan, with half of it carrying a low-interest rate and the remaining portion subject to regular interest.
The ADB is urging the government to expedite the approval of this important project. The Planning Minister assured that diligent efforts would be made to secure swift approval. The ADB Country Director shared that the past fiscal year saw substantial progress in terms of the working environment, disbursement, project implementation, and loan approval in Bangladesh.
The project’s total cost is approximately $351 million. It aims to reduce Bangladesh’s dependence on vaccine imports and bolster domestic production capabilities. The ADB Country Director highlighted that beyond the period of Least Developed Country (LDC) status, Bangladesh may face challenges in procuring vaccines at lower rates and instead may need to purchase them at market prices. To enhance the country’s capacity for vaccine production, this project has been initiated with the aim of swift approval.
Moreover, the ADB has committed $3.5 billion in financing to Bangladesh for the current fiscal year, with approximately $2 billion being concessional and the remaining $1.5 billion being regular funding.
