MTBiz June 2016

Contents

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MONTHLY BUSINESS REVIEWVOLUME: 07 ISSUE: 05JUNE 2016

Article of the month 02National News

The Central Bank 05Banking Industry 07Business & Economy 08

MTB News & Events 11 Industry Appointments 15International News

Business & Economy 17 Economic Forecast 22 Wells Fargo Monthly Outlook 24

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stakeholders only. MTB takes no responsibility for any individual investment decision based on the information at MTBiz.

This review is for information purpose only and the comments and forecasts are intended to be of general nature and are

current as of the date of publication. Information is obtained from secondary sources which are assumed to be reliable but

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Design & Printing:Preview

MTB ENTERS EMV ERA

microprocessor chips that store and protect cardholder

data. This standard has many names worldwide and

may also be referred to as: chip and PIN or chip and

signature.1

EMV is a global standard for cards equipped with

computer chips and the technology used to

rates of counterfeit card fraud, card issuers are

payment technologies by enabling safer, smarter and

mobile and remote payment channels. As Julie Conroy,

new and improved cards are being deployed to improve

to successfully counterfeit cards.2

reading device enabling fraudsters to reproduce

counterfeit cards for use in both the retail and the Card

Why Use EMV Cards

system stronger by removing the technical loopholes

countries adopted it since the advent of this technology

while others started following the same sooner or later,

as and when felt required, with/without having

service providers have to answer quite more

convincingly.

against card frauds with its unique technological

EMV Technology

EMV chip technology is becoming the global standard

02 MTBiz

ARTICLE OF THE MONTH

MTB ENTERS EMV ERA

strips will gradually be converted to EMV.

acceptance where, as reported, over 3.4 billion EMV

4

I

lowest level for two decades and counterfeit card fraud

losses have also fallen and are at their lowest level since

Canada

a

used for payment, the card chip creates a unique

number created in that instance

wouldn't be usable again and the card would just get

denied. EMV technology will not prevent data breaches

EMV provides interoperability with the global payments

infrastructure consumers with EMV chip payment

cards can use their card on any

payment terminal. EMV technology also supports

digital seal that cannot be copied and successfully

EMV chip payment cards are

Core Technology EMV is the only security standard

that can guarantee interoperability between payment

technologies, and serves as the core for future payment

channels, including Mobile EMV.

EMV allows an issuer

to choose the secure payment technology they wish to

deploy: Contact EMV, Contactless EMV, Mobile EMV, or

base.3

acceptance. Issuers around the world are including

03 MTBiz

ARTICLE OF THE MONTH

Table 1: INTERAC deb card ra d losses as a res l o s mm ngLosses o F nanc al Ins ons

Year

2 1

2 14

2 13 2,22

2 12 93,

2 11 1 4,1

2 2 ,2

2 23 ,

2 14 ,

Source: h p://www.interac.ca/en/fraud.html

Dollars CAD lost to INTERAC debit card

fraud in million

11.

1 .2

29.

3 .

.

11

142.3

1 4.

Cardholders

Reimbursed

24, 9

32,

04 MTBiz

ARTICLE OF THE MONTH

and security in mind and being responsive to the recent

country have been introducing EMV technology

20142013

Africa & the Middle East

Europe Zone 1

Europe Zone 2

942

Source: EMVCo

Europe Zone 1 Europe Zone 2 AsiaAmerica, andthe Carribbean

Africa & theMiddle East

05 MTBiz

THE CENTRAL BANK

NATIONAL NEWS

to its policy focus while announcing the new monetary

challenges of both the country's and the global

are strengthening their security, he said. The Deputy

government is preparing a security manual for ensuring

guests to the event.

Source: BB

06 MTBiz

THE CENTRAL BANK

Private sector credit growth has surpassed the target

private credit growth appears to be adequate to

rate of interest and increase the amount of investment.

higher amounts of loans.

of mega projects, including the Padma bridge, as

operators in the services sector such as hotels,

though the scenario in large industries is not so

same period.

07 MTBiz

BANKING INDUSTRY

this year compared to last year's corresponding quarter.

rate adjustments, according to economists, is meant for

average spread between lending and deposit rates

hand, the weighted average rates on deposits came down

previous month while interest rates on lending dropped

that will put a smile on the faces of businesses. At

present, the rate of interest on industrial loans is 11 to 12

percent, which businessmen say reins in their investment.

instance, to get the loans, the industrial units must have

if it is managed well.

NATIONAL NEWS

EXIM PN Composite

08 MTBiz

BUSINESS & ECONOMY

sought to meet the deadline for the project, said Tarana

project, where the winning bidder will arrange the foreign

amount coming from foreign loans. The government

would pay the rest.

garment, leather and leather goods, jute and jute goods

were a decline when compared with the previous

environment in some Middle East countries.

across the industry thus enhancing its share towards

sustainability.

of turnover, down from 24.1 percent in the previous

refrigerators during the quarter, which will come to the

manufacturing by this year.

2.63 2.

76

2.62

2.37

2.75

3.2

3.18

2.85

2.83

2.68

Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr

Possible launch date:

Project costs:

The satellite can also serve Middle East,

South and Southeast Asian Countries

French company Thales Alenia Space

will build and launch it.

Dec 16, 2017Nov 11, 2015

Tk 2,967.96crTk 1,314.56cr

Tk 1,653.40cr

09 MTBiz

BUSINESS & ECONOMY

Summit Barisal Power Ltd started commercial

NATIONAL NEWS

M. A. ROUF JP, ELECTED CHAIRMAN

10 MTBiz

BUSINESS & ECONOMY

JUL AUG OCT NOV DEC JAN MAR APR

IN%

6.366.24

6.17 6.196.05

6.16.07

5.65

5.62 5.61

11 MTBiz

MTB NEWS & EVENTS

S

12 MTBiz

MTB NEWS & EVENTS

13 MTBiz

MTB NEWS & EVENTS

14 MTBiz

15 MTBiz

INDUSTRY APPOINTMENTS

NATIONAL NEWS

16 MTBiz

17 MTBiz

BUSINESS & ECONOMY

INTERNATIONAL NEWS

low and a source of concern with the threat of long

debt crisis and low growth, contrasts with

disappointed analysts with an annual rate of growth of

-

dairy and sugar prices,

agency said recently.

The Food and

The World Bank

18 MTBiz

BUSINESS & ECONOMY

INTERNATIONAL NEWS

-

-

-

Toshiba recently appointed a new president to steer its

rise in quarterly sales due to unseasonable weather and

-

orders.

19 MTBiz

BUSINESS & ECONOMY

INTERNATIONAL NEWS

household spending. Forecasts were for quarterly

S&P

-

20 MTBiz

BUSINESS & ECONOMY

state-owned Coal India Ltd raised USD 3.5 billion in

the features in the new note include a see through

INTERNATIONAL NEWS

certainty that the latest approaches will lead to any

-

ing and UBS as joint global coordinators of its Indian

21 MTBiz

22 MTBiz

ECONOMIC FORECAST

quarter of 2015, with energy prices down 21 percent

prospects in China and increasing supplies. Cost

about global growth prospects.

abundant supplies and, in the case of industrial

INTERNATIONAL NEWS

150

130

110

90

50

30

50

40

30

20

41.00 39.55

forecastBrend

futuresHistorical

23 MTBiz

ECONOMIC FORECAST

Downside risks to the energy price forecast include

curtail supplies.

-

key suppliers.

are also aided by lower energy costs and plateauing

-

Upside risks to agricultural price forecasts include the

-

fall 2 percent.

-

-

-

2012

110

114

93

124

141

101

2013

102

105

104

95

114

91

115

2014

103

102

109

104

92

100

101

2015

94

91

100

95

91

1

52

1

90

99

-19.3

-5.1

-3.5

-3.4

-3.4

-5.3

-1.9

-2.9

-13.2

20.0

2.3

-0.5

2.1

3.0

0.5

2.4

1.4

-1.0

3.5

-1.1

-1.9

-3.5

-1.5

-1.1

-2.0

-2.0

1.4

1.3

-1.0

-3.1

-1.4

-1.0

-1.5

1.1

5.0

3

Food

3

Notes: (1) F denotes forecasts. (2) Revision denotes change to the forecast from the January 2016 report (expressed in percentage points for the price indexes, $/bbl for crude oil, and $/toz for gold). (3) The non-energy price index excludes precious metals.

24 MTBiz

WELLS FARGO MONTHLY OUTLOOK

INTERNATIONAL NEWS WELLS SECURITIESFARGO

for raising the fed funds rate but without any sense of

calls on both growth and the 10-year Treasury rate, and

Source U.S. Depart ent of C erce, IHS al Insight and ells Fargo Securi es, LLC

2002 2004 200 200 2010 2012 2014 201

uro one Real DBars = Co ound Rate Line = r r % Change

Co pound nnual row Q2 @ 1.4%

er- rcent Change Q2 @ 1.5%

Forecast4

0

-4

-12

4

0

-4

-122000 2002 2004 200 200 2010 2012 2014 201

U.S. Real DBars = C R Line = r r ercent Change

D - C R Q2 @ 3.9%

D - r r ercent Change Q2 @ 2. %

Forecast

10%

4%

2%

0%

-2%

-4%

-10%

10%

4%

2%

0%

-2%

-4%

-10%