Bizdata Insights Main Logo

Banking Sector Sees Forex Supply Improvement

Industry: Bank, Financial
Economic Tag: Forex

Bangladesh’s banking sector is gradually recovering from the severe stress it faced due to a shortage of foreign currencies in the local money market since July last year. According to the Association of Bankers, Bangladesh (ABB), the forex supply situation has started easing due to prudent policy support from the central bank, resumption of transactions with overseas corresponding banks, and other relevant factors. While challenges still exist, the majority of banks, particularly private commercial banks, are now regular in foreign payments. The ABB also highlighted the narrowing exchange rate gap between formal and informal markets and the positive trend in net open positions of US dollar holdings. However, non-performing loans (NPLs) remain a challenge, with court interventions hindering recovery efforts. The ABB commended the central bank’s support in stabilizing the forex market and emphasized the need for a market-based interest rate regime.

Source for more details:

Related News

Islamic Banks Face Tk 3,491 Crore Liquidity Crisis

December 6, 2023

The excess liquidity of five Shariah-based banks, allegedly affiliated with Chattogram's S Alam Group, reached a negative Tk 3,491 crore in September 2023, according to a Bangladesh Bank report. Islami Bank Bangladesh, Social Islami Bank, First Security Islami Bank, Global Islami Bank, and Union Bank reported negative excess liquidity figures.

BB Provides Tk 23.9 Billion Liquidity Support to Struggling Banks

December 6, 2023

Bangladesh Bank is extending liquidity support to struggling commercial and Islamic banks, providing repo support to commercial banks and special liquidity assistance to Shariah-based Islamic banks. In November 2023, the central bank provided the highest liquidity support of Tk 23,941 crore on November 22.

Bank Deposits in Rise by 10%

December 6, 2023

Rising interest rates, reaching up to 9%, have led to a nearly 10% increase in bank deposits in Bangladesh, totaling Tk12,852 crore in October 2023. Factors such as pre-election investment deceleration and a return of confidence among depositors, following loan scandals in Shariah-based banks, contribute to the surge.

Banks Offer Over 7% Interest on Foreign Deposits

December 5, 2023

To address the ongoing dollar crisis, Bangladesh Bank has mandated that banks offer over 7% interest on resident foreign currency deposits (RFCD). The central bank's notification allows individuals to deposit up to $10,000 in RFCD, with banks providing a minimum of 1.5% interest in addition to the benchmark rate.

Islamic Banks Face Dwindling Trade with 39% Export Drop

December 5, 2023

Trade through Bangladesh's 10 Shariah-compliant banks is dwindling, with loans surpassing deposits, creating liquidity challenges. Exports facilitated by these banks dropped by almost 39% in Q2, contrasting the nation's overall export growth of 7%.

Southeast Bank Inks Trade Agreement with Commercial Bank

December 5, 2023

Southeast Bank PLC recently signed a Master Trade Loan agreement with Commercial Bank of Dubai PSC at its Head Office. The collaboration involves the Commercial Bank of Dubai providing trade loans to Southeast Bank for its Offshore Banking Operation

Related News

Islamic Banks Face Tk 3,491 Crore Liquidity Crisis

December 6, 2023

The excess liquidity of five Shariah-based banks, allegedly affiliated with Chattogram's S Alam Group, reached a negative Tk 3,491 crore in September 2023, according to a Bangladesh Bank report. Islami Bank Bangladesh, Social Islami Bank, First Security Islami Bank, Global Islami Bank, and Union Bank reported negative excess liquidity figures.

BB Provides Tk 23.9 Billion Liquidity Support to Struggling Banks

December 6, 2023

Bangladesh Bank is extending liquidity support to struggling commercial and Islamic banks, providing repo support to commercial banks and special liquidity assistance to Shariah-based Islamic banks. In November 2023, the central bank provided the highest liquidity support of Tk 23,941 crore on November 22.

Bank Deposits in Rise by 10%

December 6, 2023

Rising interest rates, reaching up to 9%, have led to a nearly 10% increase in bank deposits in Bangladesh, totaling Tk12,852 crore in October 2023. Factors such as pre-election investment deceleration and a return of confidence among depositors, following loan scandals in Shariah-based banks, contribute to the surge.

Banks Offer Over 7% Interest on Foreign Deposits

December 5, 2023

To address the ongoing dollar crisis, Bangladesh Bank has mandated that banks offer over 7% interest on resident foreign currency deposits (RFCD). The central bank's notification allows individuals to deposit up to $10,000 in RFCD, with banks providing a minimum of 1.5% interest in addition to the benchmark rate.

Islamic Banks Face Dwindling Trade with 39% Export Drop

December 5, 2023

Trade through Bangladesh's 10 Shariah-compliant banks is dwindling, with loans surpassing deposits, creating liquidity challenges. Exports facilitated by these banks dropped by almost 39% in Q2, contrasting the nation's overall export growth of 7%.

Southeast Bank Inks Trade Agreement with Commercial Bank

December 5, 2023

Southeast Bank PLC recently signed a Master Trade Loan agreement with Commercial Bank of Dubai PSC at its Head Office. The collaboration involves the Commercial Bank of Dubai providing trade loans to Southeast Bank for its Offshore Banking Operation

Shopping cart

0
image/svg+xml

No products in the cart.

Continue Shopping

BUSINESSMONITOR

Connect with


Dont Have Account? Please register Here