Daily News Flash, 8th November, 2017

1

DSEX 25.18 Gold (Ounce) $1276.40 Dollar 80.92 (Buy) 80.92 (Sell) CSCX 59.50 Oil (Barrel) $57.28 Euro 93.94(Buy) 93.96(Sell)

BB VIGILANTISM SQUEEZES BANKS' STOCK-MARKET BUSINESS .......................................................................................... 2

NEW CODE OF CONDUCT FOR BANKS, NBFIS .............................................................................................................................. 3

SHAHBAZPUR GAS MAY REMAIN UNUTILISED FOR POOR DEMAND .................................................................................... 4

ACC TO GRILL FIVE ICB OFFICIALS .................................................................................................................................................. 4

RISING NPL IN SME SECTOR .................................................................................................................................................................. 5

GOVT LOOKS TO MAKE BEST USE OF 3RD INDIAN LOC ............................................................................................................. 6

STOCKS EXTEND GAINING STREAK, TURNOVER HITS ONE-MONTH HIGH ........................................................................ 7

SHEPHERD TO REVISE IPO FUNDS UTILISATION PROPOSAL ................................................................................................... 8

SIX BANKS AMONG TOP TURNOVER CHART .................................................................................................................................. 8

JULY-OCT ADP SPENDING 'HIGHEST-EVER' .................................................................................................................................... 9

TAX FAIR ENDS ON A HIGH NOTE ..................................................................................................................................................... 10

BB REJECTS PROPOSALS FOR TWO NEW BANKS ........................................................................................................................ 11

SAVAR LEATHER ESTATE PROJECT DELAYED AGAIN ............................................................................................................. 12

FOREIGN INVESTMENT IN STOCKS DOUBLES IN JAN-OCT ..................................................................................................... 13

STANDARD BANK EXECUTIVES SUED FOR FUND EMBEZZLEMENT .................................................................................... 14

SERVICES TO COME IN SIX MONTHS ............................................................................................................................................... 14

CURRENT ACCOUNT DEFICIT WIDENS TO $1.79B........................................................................................................................ 15

A BOON FOR RURAL PEOPLE .............................................................................................................................................................. 16

FINANCIAL INCLUSION FORGING AHEAD ..................................................................................................................................... 17

TK-10 ACCOUNTS BENEFIT FARMERS ............................................................................................................................................. 18

BANGLADESH'S PRESENT STATUS ON FINANCIAL INCLUSION ............................................................................................. 19

LIVES CHANGING FOR BETTER ......................................................................................................................................................... 19

ADB VOICES CONCERN OVER RISING NPLS .................................................................................................................................. 21

MNP SERVICE TO RESULT IN CALL COST RISE INITIALLY ..................................................................................................... 21

INTRODUCE USE OF DEBIT CARDS FOR ONLINE PAYMENT: SPEAKERS ........................................................................... 22

MOBILE NUMBER PORTABILITY SERVICE TO BE LAUNCHED IN 2018 ................................................................................ 23

OFFSHORE MULTI-CLIENT SEISMIC SURVEY HITS SNAG FOR DELAY IN PROBE .......................................................... 23

REGIONAL INTEGRATION MUST FOR SUSTAINABLE GROWTH IN S ASIA: ICCB ............................................................ 24

....................................................................................................... 25

........................................................................................................ 26

........................................................................................................................................... 27

...................................................................................................................................... 27

Daily News Flash, 8th November, 2017

2

.......................................................................................................................................... 28

? ........................................................................................................................................ 28

........................................................................................................ 29

: ..................................................................................................................................... 30

% ................................................................................................................................................... 30

............................................................................................................ 30

.................................................................................................................................................................. 31

BB VIGILANTISM SQUEEZES BANKS' STOCK-MARKET BUSINESS Commercial banks' stock-market subsidiaries lament that their activities on the capital market got squeezed for alleged arm-twisting through central bank's prohibitive watch against overexposure. Operators of the subsidiaries and their parent organisations said such shrinkage in their stock-business operations stems from the Bangladesh Bank's monitoring over the banks' share-market-exposure limits on consolidated basis. Several subsidiaries said despite the banks' share-market exposures remaining within the stipulated limit as per the law governing bank companies, the central bank further issued a circular regarding the monitoring of exposure on consolidated basis that combines banks and their subsidiaries' accounts on stock-market operations in calculating. "The central bank can relax its monitoring on consolidated basis as there is nothing in this regard in the Bank Companies Act," said Md Sayadur Rahman, president of Bangladesh Merchant Bankers Association (BMBA). Mr. Rahman, also managing director of EBL Securities, said banks got into problem as their exposure limit on consolidated basis included subsidiaries' total investments, including margin loans. "It's not justified to include the subsidiary's investments into bank's exposure on consolidated basis as the subsidiaries are separate entities and regulated by the securities regulator," he said, adding that consolidated calculation is a big restriction on expansion of capital market. On solo-basis calculation set as per the latest amendment to the Bank Companies Act, the banks are allowed to invest in the capital market up to 25 per cent of their respective paid-up capital, statutory reserves, retained earnings and share premium. And the banks can invest up to 50 per cent of different components, including the subsidiaries' total investments and margin loans, as per the circular regarding exposure on consolidated basis. In solo calculations, the subsidiaries' total investment and margin loans are not included. Talking to the FE, an official of the Bangladesh Bank (BB) said the circular regarding monitoring banks' exposure on consolidated basis was issued in February 2014 following the relevant ministry's suggestion to fulfill a condition set for implementing the Capital Market Development Project-II (CMDP-II). He said while implementing the CMDP-II by the securities regulator, the central bank was not willing to issue circular regarding the exposure on consolidated basis considering its overall viability. The securities regulator implemented the CMDP-II with a fund worth $300 million provided by the Asian Development Bank (ADB). "The ADB suggested setting a bank's exposure to capital market at 40 per cent of the components on consolidated basis. But the BB expanded the limit, setting it at 50 per cent, considering relaxation of banks," the BB official said.

Daily News Flash, 8th November, 2017

3

He noted that consolidation concept is not something new as the banks have to keep capital as per BASEL-I and BASEL-II requirements. He also said the problem arose when the banks' miss-reporting reg