Banking News
Sun, Aug 03 2014, 12:00 am
RIO
DE JANEIRO, Aug 1 (Xinhua): Brazil's industrial output fell 6.9 per
cent in June compared to the same month last year, mostly due to a
contraction of the automobi...read more
Sun, Aug 03 2014, 12:00 am
DUBLIN,
Aug 1 (Xinhua): The Central Bank of Ireland on Friday issued a warning
about an unauthorised retail credit firm offering credit facilities to
Irish consumers.In a...read more
Sun, Aug 03 2014, 12:00 am
UCB
MD wins 'CEO of the Year' awardMuhammed Ali, Managing Director of
United Commercial Bank Limited (UCB) has been awarded as 'CEO of the
Year' at the Gl...read more
Sun, Aug 03 2014, 12:00 am
JESSORE,
Aug 2 (BSS): Farmers and officials of the Department of Agriculture
Extension (DAE) are expecting bumper production of summer vegetables in
south-western region ...read more
Sun, Aug 03 2014, 12:00 am
RANGPUR,
Aug 2 (BSS) : Normal import and export activities resumed from Saturday
through the Hili Land Port (HLP) in Dinajpur after the six-day vacation
on the occasion o...read more
Sun, Aug 03 2014, 12:00 am
BRASILIA,
Aug 2 (Reuters) : Japan's Prime Minister Shinzo Abe touted the success
of his economic policies on a visit to Brazil on Friday and said it was
time fo...read more
Sun, Aug 03 2014, 12:00 am
OMAHA,
Nebraska, Aug 2 (Reuters) : Warren Buffett's Berkshire Hathaway Inc
on Friday said second-quarter profit soared 41 per cent to a record
high, refle...read more
Sun, Aug 03 2014, 12:00 am
MADRID,
Aug 2 (AFP) : The Spanish economy is recovering "better than expected"
and is now among Europe's best performers although it still faces "...read more
Sun, Aug 03 2014, 12:00 am
LONDON,
Aug 2 (Xinhua): Eurozone manufacturing purchasing managers' index
(PMI) held steady at June's seven-month low of 51. 8, as ongoing
expansion was par...read more
Sun, Aug 03 2014, 12:00 am
BEIJING,
Aug 2 (Reuters) : Microsoft Corp sued Samsung Electronics Co Ltd on
Friday, claiming the South Korean smartphone maker refused to make a
royalt...read moreArgentina debt dispute
Sun, Aug 03 2014, 12:00 am
NEW
YORK, Aug 2 (AFP): The US judge presiding over Argentina's bitter
dispute with two hedge funds left the country stranded in default
Friday, ordering it to hold ne...read more
Sun, Aug 03 2014, 12:00 am
NEW
DELHI/GENEVA, Aug 2 (Reuters): India is willing to sign a global trade
deal, which it has torpedoed, if other World Trade Organisation (WTO)
members can agree to its ...read more
Sun, Aug 03 2014, 12:00 am
TOKYO,
Aug 2 (Reuters): Japan's economy probably shrank for the first time in
nearly two years during the April-June quarter, dragged down by
weaker-than-expected con...read more
Sun, Aug 03 2014, 12:00 am
NICOSIA,
Aug 2 (Xinhua): The Central Bank of Cyprus (CBC) has suspended the
process for the sale of the Cypriot branch of the Federal Bank of Middle
East (FBME) pending a...read more
Sun, Aug 03 2014, 12:00 am
HONG
KONG, Aug 2 (Reuters): The first of Hong Kong's banks kicked off
earnings on Friday with the biggest family-run lender posting a record
interim profit after givi...read more
Sun, Aug 03 2014, 12:00 am
MOSCOW,
Aug 2 (Reuters): Russia's top lender, Sberbank , faces rising borrowing
costs and a squeeze on its margins after being included in the latest
European Union s...read more
Sun, Aug 03 2014, 12:00 am
PHNOM
PENH, Aug 2 (Xinhua): Cambodia is projected to receive 4.6 million
international visitors this year, an expected rise of 10 per cent from
4.2 million last year, Min...read more
Sun, Aug 03 2014, 12:00 am
Sun, Aug 03 2014, 12:00 am
Loan interest rates higher: Bangladeshi banks facing business challenge
August 1, 2014Bangladesh Bank Borrowing from foreign sources by personal companies, company homes and massive firms have accrued manifold within the recent times, motility a threat to the business of native industrial banks, sources same on Thursday
Insiders same, native firms square measure currently heavily wishing on foreign banks, monetary establishments and development agencies for funds in the main because of lower interest rates charged by them. per Bangladesh Bank (BB), native firms borrowed $2.6 billion term credit, principally by having a maturity of 5 years and, throughout the year 2013-14 whereas it absolutely was $2.4 billion in year 2012-13 compared and $1.8 billion in year 2011-12. additionally, native companies have availed $3.2 billion short-run foreign currency (FC) loans from foreign sources within the kind of ‘buyers credit’ up to Gregorian calendar month two014 compared with $600 million in Gregorian calendar month 2013.”Fund assortment from foreign sources by personal firms has accrued sharply within the recent years apparently risking business of the native banks,” Farid Uddin, manager of Rupali Bank, told The New Nation Thursday
.He attributed such associate abrupt rise in foreign borrowings to the upper loaning rates charged by native banks and different monetary establishments.”Among the foreign credits, the FC loans became terribly useful for native firms because of their marginal interest rates,” he said, adding, “The value of FC loan is sometimes LIBOR (London Interbank Offered Rate) and four per cent or five per cent, whereas the typical rates of native currency loans has been calculated at thirteen.35 throughout January to Gregorian calendar month of the previous financial .Farid Uddin determined that aside from compressing business of the native banks, the glut in foreign loans conjointly helped assemble a large quantity of excess liquidity within the country’s banking industry that stood at Tk 136201.24 large integer at the top of March 2014. “If such a trend continues within the days to come back, it\'ll more facilitate enlarge the liquid funds within the banks, creating business a lot of vulnerable for native banks” he same. Considering the actual fact, he urged the authorities of the financial institution to become a lot of careful in approving foreign loans for native firms. “Whatever the benefits that escort foreign loans, it (BB) ought to take a conservative stance during this reference to save the interest of our country,” he added.When asked, he said, native banks square measure compelled to charge higher interest rates to their loaning as they need to mobilize deposit at higher interest rates. Besides, associate accrued disbursement of the native banks has conjointly pushed up the loaning rates, he added. The Rupali Bank high official, however, same that huge shoppers of his bank square measure however to travel for foreign loans as his bank was maintaining an honest relation with such shoppers, compromising some areas of their business.”We see risk for native banks within the wake of rising trend of taking foreign currency loans by native firms,” same another high official of a personal banking concern.He said: currently huge firms having massive capital base square measure availing such loans. however once the loans is offered for the mid-level and little firms, then it would eat up an honest share of native bank’s business.”The spree in foreign authorization by shot has conjointly place a further pressure on the native banks to slush their loaning rates after they (banks) square measure burdened by idle funds within the wake of sluggish investment climate,” he said.He same that the in foreign authorization is ultimately paving the means of foreign banks to expand their loaning business in Bangladesh after they don\'t seem to be obtaining expected returns in investment in developed countries.”They have currently targeted the developing countries like Bangladesh to induce the next returns on their capital investment and it\'s we have a tendency to, WHO square measure creating the means ignoring interest of the native banks,” he commented.
Source: The New Nation , Aug 1
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