MTBiz April 2016

Contents

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MONTHLY BUSINESS REVIEWVOLUME: 07 ISSUE: 03APRIL 2016

Article of the month 02National News

The Central Bank 05 Banking Industry 08 MTB News & Events 11

Business & Economy 15Industry Appointments 17

International News

Business & Economy 19 Economic Forecast 23 Wells Fargo Monthly Outlook 24

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Cotton Outlook for Bangladesh

02 MTBiz

ARTICLE OF THE MONTH

Bangladesh eyes to reach USD 50 billion of RMG export

by 2021. The average growth rate of last 5 years’ RMG

export was 16.11% booming as the largest RMG

exporter of the world. The country’s economic pulse is

to push its per capita income to reach the next marking

as Upper Middle Income Countries (UMIC) by 2021,1 as

per Bangladesh government’s 7th

appears to be a key for the country to reach this target

as the country’s RMG sector contributes to 82% (in

realizing its dream, the next one must be

absolutedependency on external market for RMG raw

preceding by China with a share of 35% (2014). By

2

average growth rate of 5%, during last 15 years

pose a threat for the country’s RMG sector, the largest

absolutely external.

example, in 2011 China took a policy of reducing

Cotton Outlook for Bangladesh

03 MTBiz

ARTICLE OF THE MONTH

This unusual price hike marched the whole RMG

exporters’ targets in future. Due to price spike the knit

factories, RMG producers and exporters pose a

building stocks to reducing them in China is one of the

prices during the early years of the outlook period. By

world price in 2024 in real terms is expected to be 23%

China, India and Uzbekistan and the remaining is

3

Bangladesh imported, had come from India alone,

Bangladesh.

sourcing risks, which has become a challenge to

sourcing. Bangladesh must work closely with those

India 10178.2 11047.1

Uzbekistan 4806.6 4416.8

Source: Bangladesh Bank

140

130

120

110

100

80

70

60

120

100

80

60

40

20

0

mil

. b

ale

s

04 MTBiz

ARTICLE OF THE MONTH

of its economy supported by RMG sector’s growth,

import will be larger than current 10%.

suggests Bangladesh to see the bigger picture of future

smoothly.

1

2

3

4

5

6.00

5.00

4.00

3.00

2.00

1.00

0.00

20

00

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1

20

04

M0

1

20

08

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1

20

12

M0

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16

M0

1

13 percent below last season, as lower area combined

with a reduced yield will push the global crop to its

a combined 51 percent of the world total, with

to 105.5 million bales.

decline in China’s stocks more than accounts for the

accelerate slightly in calendar years 2016 and 2017,

years.

to remain at 24.5 million bales for the third

4 5

05 MTBiz

THE CENTRAL BANK

Chowdhury inaugurated the event as chief guest while

Director Subhankar Saha opened the ceremony with

comprehensive study to provide a set of data and insights

product design. These will be used to build dedicated

products and a delivery channel of women agents so that

they can accelerate female MFS use.

B a n g l a d e s h

Bank recently

said the

students below

six years of age

would also be

allowed to open

accounts with

the scheduled

products. The BB issued a circular to Managing Directors

central bank had taken the decision to extend the

central bank earlier allowed the students aged between 6

years and 18 years to open the school banking accounts

with the banks.

The central bank is set to strictly monitor whether the

banks are giving rewards to their good borrowers. In

central bank introduced the rebate policy in March last

such that they are encouraged to always repay their loans

rebate on their interest payments, as per the policy. The

policy for large borrowers, giving them a maximum of 12

years to repay loans above BDT 500 crore.

The central bank has

part of government's

s u s t a i n a b l e

development goals

(SDGs) set by the

of the Bangladesh Bank (BB) has been tasked with

sustainable monetary policy, agricultural credit polices

poor, banking services for the poor and underserved,

channel banking.

NATIONAL NEWS

06 MTBiz

THE CENTRAL BANK

The Bangladesh Bank (BB) has introduced a guideline to

detail including the management of risk,” the

Bangladesh Bank (BB) said in its guidelines on foreign

an uncertain future. It is believed that generally the

The central bank has

ceiling using

Cards (ICC) for online

purchase threefold to

streamline the

electronic payment

system. Bangladesh Bank (BB) in its latest circular

issued recently stated that it has now been decided to

etc.) from reputed and reliable sources abroad.

BB has asked all banks to follow the updated guidelines

for internal control and compliance risk management.

and regulators have become momentous to ensure

smooth performance of the banking industry. It further

smooth performance of the banking industry.

THE CENTRAL BANK

07 MTBiz

08 MTBiz

BANKING INDUSTRY

in order to facilitate online payments for individual

city hotel in individual level so that they can pay

Bank recently.

Bangladesh's First

assist readymade

Bank in launching the product.

the card, which will make it more secured and

Managing Director of the Bank inaugurates the Card

also present on the occasion.

NATIONAL NEWS

09 MTBiz

BANKING INDUSTRY

Jamuna Bank organizes Free Medical Camp in Rangpur

FSIBL Donates BDT 15 Lac to DNCC for CCTV

Surveillance Project

UCB signed an agreement with Radisson Blu

AIBL opens two agent banking outlets in B'baria,

Comilla

10 MTBiz

BANKING INDUSTRY

StanChart Bank sets up new ATM at Cox's Bazar

Banks' capital rises in Sept-Dec

Bangladesh & FSIBL

Standard Bank Limited (SBL) honoured highest

CAPITAL IN BANKS

71,754

In crores of taka

69,33468,230

72,720

75,352

MTB NEWS & EVENTS

11 MTBiz

TOP BANKERS GREET NEW BB GOVERNOR

Date: Venue:

MTB INDEPENDENT CUP SQUASH TOURNAMENT FINALE HELD

Date:

Venue:

MTB SIGNS AGREEMENT WITH BIMAN BANGLADESH AIRLINES

Date: Venue:

12 MTBiz

MTB NEWS & EVENTS

MTB CONTRIBUTES BDT 1 MILLION TO DNCC FOR CCTVSURVEILLANCE PROJECT

Date:

Venue:

MTB WAS INVITED TO BENGAL GROUP’S DEALER - DISTRIBUTORCONFERENCE

Date:

Venue:

MTBCL SELECTED ISSUE MANAGER AND CORPORATE ADVISOR OF SIKDER APPAREL HOSIERY LIMITED

Date:

Venue:

13 MTBiz

MTB NEWS & EVENTS

MTB ORGANIZED HEALTH AWARENESS SESSION ON CANCER AT UNITED HOSPITAL

MTB CELEBRATES INTERNATIONAL WOMEN’S DAY

Date:

Venue:

MTB CARDHOLDERS TO ENJOY FLEXIPAY FACILITY WITH REGENT AIRWAYS

Date:

Venue:

Date:

Venue:

14 MTBiz

15 MTBiz

Deal on 1,224MW Banskhali coal power plant

BUSINESS & ECONOMY

16 MTBiz

BUSINESS & ECONOMY

inclusion

Ind

ia

Paki

stan

Srila

nka

Ch

ina

Ave

rage

Cam

bo

dia

Vie

tnam

Ban

glad

esh

14.116.2

19

34.6 34.8 36.2

45.7

52.456.2

67

Total cost of Rampal project: $1.8b

$1.48b

4.72

BY THE NUMBERS

DE

VE

LO

PI N

G 8 CO

U

NT

RI

ES

D-8

TURKEYPAKISTANNIGERIAMALAYSIAIRANINDONESIAEGYPTBANGLADESH

D-8 Organization

for Economic Cooperation

D-8 Organization

for Economic Cooperation

17 MTBiz

INDUSTRY APPOINTMENTS

New Governor of Bangladesh Bank

Kabir, former Senior

Secretary to the

Government of

Bangladesh, joined as

the 11th Governor of

Bangladesh Bank on

March 20, 2016.

Fazle Kabir started his

professional career in

1980 in the Railway

Commercial cadre of Bangladesh Civil Service. In 1983,

Magistrate of Kishoreganj district, Joint Secretary in the

2008 and 2010 and Bangladesh Bank from 2012 to

Prior to joining Bangladesh Bank, Fazle Kabir was

M.A. degree. In his professional career, he was a

A F M Shariful Islam appointed as Managing Director

of NBL

Arif Khan new CEO of IDLC Finance

Arif Khan has been appointed Chief

a commissioner of Bangladesh

began his career with AB Bank and

has worked with BAT Bangladesh,

Bangladesh.

WB's new country director for Bangladesh

The World Bank has appointed

Framework for Bangladesh, which

is now the largest recipient of

the job. He joined the WB in 1991 and held leadership

NATIONAL NEWS

18 MTBiz

19 MTBiz

BUSINESS & ECONOMY

Four more banks get Myanmar licence

banks have been

given preliminary

a p p r o v a l t o

o p e r a t e i n

Myanmar, the

latest government

Shinhan Bank and the State Bank of India, the Global

of Myanmar. A total of 13 foreign banks have now been

region.

Look beyond ultra-easy policy for growth: G20

The world' stop economies

recently declared that they

need to look beyond

torpor, while renewing

spending were the main factors driving the

rates steady since May last year to keep its main

Reserve Bank governor Glenn Stevens said the bank

reached a deal to

strategic foothold

inChina's banking

billion, making it

the latest big

Generale SA in 2006. China's government originally

dangled in front of the foreign banks the tantalizing

prospect of being able to take majority control of

INTERNATIONAL NEWS

G20 Countries

GLOBAL

ECONOMY

GLOBAL

TRADE

WORLD

POPULATION

FOSSIL FUEL

EMISSIONS

90% 80%

66% 84%

20 MTBiz

BUSINESS & ECONOMY

lenders more than a decade ago, seeking to gain a

growth market.

China, BRICS bank sign documents

Banks for

members of

Arabia, face

low oil prices

historically high levels. Moody's Investors Service

reported the banks for GCC members might get

oil price declines signal increasing challenges to the

Myanmar triples electricity supply expenditure

installed capacity of electricity of Myanmar rose from

electricity has

b e e n

60,000 villages

across the

M y a n m a r ' s

66 percent of electricity comes from hydropower, 29

customers in UK

HSBC is rolling

million banking

voice biometrics

21 MTBiz

BUSINESS & ECONOMY

Systems, a provider

payment gateway services to the global market with

integrated payment processing to their global

merchants and partners.

mobile deposits

smartphone app and

instantly to several

company has also

make accelerated

bank and private label

ends meet, and check deposit delays and reversals

historically high levels. Moody's Investors Service

reported the banks for GCC members might get

push

India will consider merging some of its more than two

BluefinPayment Systems

R

INGO

TM

22 MTBiz

BUSINESS & ECONOMY

this year, said Binayak Shah, general secretary of Hotel

World's biggest miner adds USD 10b in boost to M&A

war chest

to recover. The

streets of Thamel

Wearable tech takes aim at health care costs

employees. One of the greatest challenges is how to

lifestyles.

planned to adopt the technology in coming years.

its more than 300,000 employees.

23 MTBiz

ECONOMIC FORECAST

Outlook for Developing Countries: World Bank 2016

Figure: Developing-country outlook

rising. However, forecasts for 2016 have been

Europe and Central Asia:

Economic

Regional growth is projected to strengthen to an average

grappled with the protracted decline of commodity prices

Middle East and North Africa:

South Asia:

pace among all developing regions. Falling oil prices have

Sub-Saharan Africa:

and private investment.

INTERNATIONAL NEWS

A. Growth: Emerging and developing countries

Percent

1086

20

Indi

a

Chin

a

Indo

nesi

a

Mal

aysi

a

Braz

il

EFE

Aver

age

B. Growth: Low-income countries

Percent

Ethi

opia

Tanz

ania

Cam

bodi

a

Gam

bia.

The

Afg

hani

stan

1086

20

24 MTBiz

WELLS FARGO MONTHLY OUTLOOK

INTERNATIONAL NEWS WELLSSECURITIESFARGO

e .S. epartment of Commerce, IHS Global Insight and Wells Fargo Se es, C

2000 2002 200 2006 2008 2010 2012 201 2016

.S. Real G P Bars = CAGR ine = Yr/Yr Percent Change

G P CAGR Q2 @ 3.9

G P Yr/Yr Percent Change Q2 @ 2.

Forecast

2002 200 2006 2008 2010 2012 201 2016

E rozone Real G PBars = Compo Rate = Yr/Yr Change

Compo d Ann al Grow Q2 @ 1.

ver Year Percent Change Q2 @ 1.

Forecast

0 0

U.S. Overview

real disposable income gains. Meanwhile, government

Global markets have calmed down considerably since

promises some cooler heads regarding the risks for the

improvement. However, there seems to be a feeling

that the worst has passed for emerging markets and the

to changes in monetary policy and growth prospects.