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‘Exchanging in Cryptocurrency not allowed in Bangladesh’

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Bangladesh Bank has once again asked all to refrain from trading any kind of virtual coin or cryptocurrency in the country.

The banking regulator made the call as the definition of “currency” given by the Foreign Exchange Regulation Act, 1947 does not recognize virtual currencies.

Virtual currencies [subset of virtual assets] are not approved by the central bank to settle any type of foreign exchange transaction or make those for investment as per the act, according to a BB notice.

Virtual currencies or virtual assets have no financial claim embedded and are neither issued by any sovereign nor guaranteed by any jurisdiction.

Thus, their value is highly volatile and associated with high financial risks.

The BB in the notice said borderless transactions of unregulated virtual currencies are growing fast and being exchanged with some other foreign currencies.

Treating virtual currency as an alternative form of foreign exchange transactions is a contravention of the act.

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Cenbank asks banks to be cautious about fake notes during Ramadan

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Bangladesh Bank (BB) Urges Vigilance Against Counterfeit Notes During Ramadan

Bangladesh Bank (BB) has issued a circular to all commercial banks, urging heightened vigilance to prevent the circulation of counterfeit notes during the month of Ramadan. The circular, addressed to the managing directors of all commercial banks, instructs banks to take necessary measures to combat the spread of fake currency.

As per the directive, banks are required to broadcast a video clip showcasing the security features of banknotes for at least one hour after evening prayers in major public areas of the capital, divisional cities, and Bogra city throughout Ramadan.

Additionally, banks are instructed to thoroughly inspect notes before loading them into ATMs. Furthermore, all bank branches are mandated to display videos highlighting the security features of banknotes during banking hours.

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Confidence Group, UCB, Prime Bank Forge Alliance for Corporate Advancement

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“Confidence Group, UCB Investment Limited, and Prime Bank Investment Limited Forge Strategic Alliance to Revolutionize Corporate Advisory and Equity Raising in Bangladesh”

Industry leaders convened at The Westin Dhaka on March 18 to witness the signing of a Memorandum of Understanding (MoU) between Confidence Group, UCB Investment Limited, and Prime Bank Investment Limited. Among the attendees were Rezaul Karim and Imran Karim, Chairman and Vice Chairman of Confidence Group respectively, Arif Quadri, Managing Director and CEO of United Commercial Bank, Tanzim Alamgir, Managing Director of UCB Investment Limited, and Syed M Omar Tayub, Managing Director of Prime Bank Investment Limited.

The alliance, as stated in a press release, heralds a new era of collaboration marked by strategic partnership and collective growth objectives. Rooted in a shared commitment to leveraging their combined strengths and expertise, the three entities aim to drive innovation, promote sustainable development, and seize untapped opportunities within Bangladesh’s dynamic business landscape.

This strategic alignment signifies a pivotal moment in the nation’s economic trajectory, as Confidence Group, UCB Investment Limited, and Prime Bank Investment Limited join forces to address evolving market needs and propel Bangladesh towards greater prosperity. As stakeholders prepare to embark on this transformative journey, the alliance is poised to set new industry standards, accelerate growth, and establish a paradigm of excellence in corporate cooperation.

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Exim Bank, Padma Bank to Merge, Forming Single Entity

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Exim Bank has decided to merge with Padma Bank Limited to form a single entity, confirmed a source at the bank’s board meeting. The decision was made this morning at Exim Bank’s board meeting, where it was also decided to hold a press conference on Monday regarding the merger. This will mark the first voluntary merger in the country, distinguishing it from previous mergers. A Memorandum of Understanding will be signed between the two banks on Monday, with the Bangladesh Bank governor and ABB present at the signing. The Padma Bank name will cease to exist, and the new single entity will be named Exim Bank.

A source from the meeting also disclosed that the Bangladesh Securities and Exchange Commission (BSEC) had been informed, although BSEC top officials claimed to have not received any letter regarding the matter. Notably, while Exim Bank is listed on the stock market, Padma Bank is not.

Chowdhury Nafeez Sarafat, chairman of Padma Bank, resigned on January 31. Following his resignation, state-owned banks, including Sonali Bank, Janata Bank, Agrani Bank, Rupali Bank, and Investment Corporation of Bangladesh, provided a bailout of Tk715 crore to Farmers Bank, in which Padma Bank had invested. However, despite these investments, the bank’s capital erosion continued due to failure in recovering funds from defaulters.

In July 2021, Md Ehsan Khasru, the then-managing director of Padma Bank, submitted a merger or acquisition proposal to the finance ministry due to substantial defaulted loans, deposit repayment inability, and significant losses. Despite the proposal, the merger did not materialize.

Later, in September 2021, Padma Bank announced an agreement with US-based investment bank DelMorgan and Company for a $700 million investment. However, the funds did not materialize, and reports suggest that Padma Bank withheld information about accumulated losses exceeding Tk900 crore from foreign sources.

In February 2023, the Investment Corporation of Bangladesh (ICB) decided to withdraw investments from Padma Bank due to no return on investment in five years. The state-owned investment corporation is now seeking strategic investors to sell its shares in Padma Bank.

In October of the previous year, the parliamentary standing committee on the Ministry of Environment, Forests, and Climate Change directed relevant officials to take necessary actions to recover Tk536 crore, which had been parked as FDR in 2015. Despite failing to repay the FDR, Farmers Bank reportedly obtained an extension of eight additional years from the Ministry of Environment in December 2022 to settle the debt.

As of the conclusion of 2023, Padma Bank’s outstanding loans amounted to Tk5,740 crore, of which Tk3,550 crore were default loans, indicating a limited capacity for the bank to reimburse depositors. Additionally, the bank recorded a capital shortfall of Tk607 crore at the end of September 2023.

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