Surge in Bank-vs-Bank Lawsuits Involving Tk16,000 Crore

The Dhaka stock market experienced its largest single-day decline in nearly seven months due to panic-driven sell-offs triggered by rumors of a proposed capital gains tax on secondary market investments. Investors reacted anxiously to reports of a 15% tax on individual capital gains, prompting a rush to sell holdings.

The Bangladesh Bank (BB) has instructed banks to expedite the payment of outstanding dues to foreign airlines, aiming to resolve the issue and alleviate the ongoing dollar crisis. The BB spokesperson clarified that the actual volume of dues amounted to $177.79 million, contrary to media reports of $214 million.

The Bangladesh Bank (BB) has issued new guidelines for trading government securities on the secondary market, aiming to promote their popularity and develop the capital market. Investors interested in purchasing sovereign securities, also known as government bonds, through the stock exchange must possess Beneficiary Owner (BO) accounts.

Investments made by full-fledged Islamic banks in Bangladesh have surged nearly nine times their deposits within a year, raising concerns about the overall health of the banking sector. Official figures show that these banks experienced a significant increase in loans, totaling Tk 46,011 crore, in the first quarter of 2023 compared to the same period in 2022.

In the maiden post-budget session, the Dhaka Stock Exchange (DSE) witnessed a significant surge in turnover, exceeding Tk 12 billion for the first time in seven months. The market's positive performance can be attributed to the absence of any new tax provisions or cuts to existing tax facilities in the proposed budget for FY24.

The Bangladesh Bank has issued a notice stating that all licensed money changers in the country must become members of their relevant trade association by June 30, 2023. The central bank believes that this requirement will help streamline the operations of the money changing business.