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MTBiz April 2016

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MTBiz is for you if you are looking for contemporary information on business, economy and especially on banking industry of Bangladesh. You would also find periodical information on Global Economy and Commodity Markets.

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MTBiz April 2016

  1. 1. Contents Disclaimer: MONTHLY BUSINESS REVIEW VOLUME: 07 ISSUE: 03 APRIL 2016 Article of the month 02 National News The Central Bank 05 Banking Industry 08 MTB News & Events 11 Business & Economy 15 Industry Appointments 17 International News Business & Economy 19 Economic Forecast 23 Wells Fargo Monthly Outlook 24 MTBiz is printed for non-commercial & selected individual-level distribution in order to sharing information among 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 their accuracy cannot be guaranteed. The name of the other companies, products and services are the properties of their respective owners and are protected by copyright, trademark and other intellectual property laws. MTBiz Developed & Published by MTB Group R&D Please send feedback to: rnd@mutualtrustbank.com All rights reserved @ 2016 Design & Printing: Preview Cotton Outlook for Bangladesh
  2. 2. 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
  3. 3. 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.bales
  4. 4. 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 2000M01 2004M01 2008M01 2012M01 2016M01 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
  5. 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
  6. 6. 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.
  7. 7. THE CENTRAL BANK 07 MTBiz
  8. 8. 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
  9. 9. 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. 10. 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 69,334 68,230 72,720 75,352
  11. 11. 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. 12. 12 MTBiz MTB NEWS & EVENTS MTB CONTRIBUTES BDT 1 MILLION TO DNCC FOR CCTV SURVEILLANCE PROJECT Date: Venue: MTB WAS INVITED TO BENGAL GROUP’S DEALER - DISTRIBUTOR CONFERENCE Date: Venue: MTBCL SELECTED ISSUE MANAGER AND CORPORATE ADVISOR OF SIKDER APPAREL HOSIERY LIMITED Date: Venue:
  13. 13. 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. 14. 14 MTBiz
  15. 15. 15 MTBiz Deal on 1,224MW Banskhali coal power plant BUSINESS & ECONOMY
  16. 16. 16 MTBiz BUSINESS & ECONOMY inclusion India Pakistan Srilanka China Average Cambodia Vietnam Bangladesh 14.1 16.2 19 34.6 34.8 36.2 45.7 52.4 56.2 67 Total cost of Rampal project: $1.8b $1.48b 4.72 BY THE NUMBERS DEVE L O P I N G 8 C O U N T RIES D-8 TURKEYPAKISTANNIGERIAMALAYSIAIRANINDONESIAEGYPTBANGLADESH D-8 Organization for Economic Cooperation D-8 Organization for Economic Cooperation
  17. 17. 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. 18. 18 MTBiz
  19. 19. 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. 20. 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. 21. 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 IN GOTM
  22. 22. 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. 23. 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 10 8 6 2 0 India China Indonesia Malaysia Brazil EFEAverage B. Growth: Low-income countries Percent Ethiopia Tanzania Cambodia Gambia.The Afghanistan 10 8 6 2 0
  24. 24. 24 MTBiz WELLS FARGO MONTHLY OUTLOOK INTERNATIONAL NEWS WELLS SECURITIES FARGO 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 P Bars = 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.

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