BRAC Bank and WeGro Partner to Finance Smallholder Farmers

The Bangladesh Bank is introducing special liquidity support for banks weakened by irregularities and corruption, following a change in their boards. These banks will receive liquidity assistance against guarantees from the central bank, with stronger banks providing the liquidity. Previously, the central bank printed money to sustain banks, but it has now moved away from this approach, focusing on liquidity support through finalized policies. The central bank plans to provide assistance this week, with support based on specific indicators.

Bangladesh's first Exchange Traded Fund (ETF), the LB Multi Asset Income ETF, has failed to meet its mandatory Tk50 crore private subscription target by its second extended deadline of 3 September. LankaBangla Asset Management, the fund's asset manager, has requested a six-month extension from the Bangladesh Securities and Exchange Commission (BSEC), pushing the deadline to 3 March next year.

In the January-March 2024 period, industrial term loan disbursements increased slightly to Tk 22,015 crore from Tk 20,907 crore a year earlier, driven largely by rising dollar rates, which have made imported goods and raw materials more expensive. The surge in the dollar rate to Tk 120 in July 2024, up from Tk 110 in December 2023 and Tk 99 a year prior, led many industries to seek additional financing and refinance existing dollar-denominated loans into local currency.

In the first month of the current fiscal year, disbursement of agricultural loans fell by nearly 10% year-on-year, totaling Tk 17.90 billion compared to Tk 19.91 billion in July 2023, as reported by Bangladesh Bank (BB). This decline is attributed to disruptions from student-led movements, internet shutdowns, and curfews in July. Despite the decrease, bankers anticipate a gradual increase in loan disbursement as conditions improve.

Dr. Md Ezazul Islam has been promoted to Executive Director (Grade I) at Bangladesh Bank (BB), advancing from his previous role as Executive Director (Grade II). In his new position, he continues to oversee the Monetary Policy Department, where he is responsible for formulating and implementing the central bank's monetary and exchange rate policies.

UCB Investment has been honored as the "Best Investment Bank in Bangladesh" by both the Euromoney Awards for Excellence 2024 and the Finance Asia Award 2024. This marks the second consecutive year the merchant bank has received these accolades. Sharif Zahir, Chairman of United Commercial Bank (UCB), praised the recognitions as a testament to client trust and a motivation for continued excellence.