Bangladesh Bank aims to maintain adequate credit flows and promote macroeconomic stability. Remittances to Bangladesh have steadily increased, reaching $16 billion in 2014-2015. The exchange rate has remained stable and inflation has declined, while private sector credit growth and investment have increased steadily. Bangladesh Bank has created a supportive financial infrastructure and offers incentives for foreign and non-resident Bangladeshi investment.

1. INVESTMENT, REMITTANCE AND FINANCIAL
BRANDING OF BANGLADESH
Md. Ashraful Alam
Deputy General Manager
SME & Special Programmes Department
Bangladesh Bank, Head Office
Dhaka, Bangladesh

2. BB’S MISSION FOR PRIVATE SECTORS
Mission Statement of Bangladesh
For the business community, including farm
and non-farm SMEs
• We shall maintain liquidity conditions and credit policies
ensuring adequate credit flows at market driven flexible
interest rates for all productive economic activities, including
in sectors like agriculture and MSMEs where markets
have not been very responsive.
• We shall foster macroeconomic stability through monetary
and external sector management. We shall promote and
support development of new financial products, services
and instruments.

3. REMITTANCES FLOW IN THE COUNTRY
0
2000
4000
6000
8000
10000
12000
14000
16000
2007-2008 2009-2010 2010-2011 2008-2009 2011-2012 2012-2013 2013-2014 2014-2015*
millionUSD
Remittances In million USD

4. STABLE EXCHANGE RATE
July,13 Dec, 13 July,14 Dec,14 June, 15
Series1 77.75 77.75 77.52 77.85 77.8
77.3
77.4
77.5
77.6
77.7
77.8
77.9
TakaperUSD
Exchnage rate
 Exchange rate is stable

5. ACHIEVEMENT OF BB
 Foreign Exchange Reserve
(End June 2015 : USD 25020.5 million
 Enough to meet more than 6 months Import Payments.

6. DECLINING INFLATION
July, 12 Dec, 12 July,13 Dec,13 July, 14 Dec,14 June,15
Series1 8.14 6.22 6.99 7.53 7.28 6.99 6.4
0
1
2
3
4
5
6
7
8
9
in%
Rate of Inflation: CPI
Base Year: 2005-06
* 12 month average
BB is successful in maintaining the price level;
Inflation rate is moderate.
Inadequate physical facilities?

7. ACHIEVEMENT OF BB
 Average spread fell from 5.13 % in July 2014 to 4.83% in May 2015.
 Average Lending rate fell from 12.84% in July 2014 to 11.82% in May 2015.
 The call money rate has fallen from 8.57% in January 2015 to 5.79% in
June 2015.
Lending interest rate is being favorable for private investment.
Declining interest rate spread

8. ACHIEVEMENT OF BB
 Private sector credit growing steadily and reached highest at 13.6% in
FY15;
 The public sector credit, however, shrinking
The expansion of private sector endowed the economy
to have 6.5% output growth.
Rising private sector credit

9. GROSS INVEST SCENARIO OF BANGLADESH
0
500
1000
1500
2000
2500
3000
3500
4000
2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15*
Gross investment Scenario in Bangladesh
Private (Billion BDT) Public (Billion BDT)

10. 10
15
20
25
30
35
40
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
India Pakistan Sri Lanka Bangladesh
Investment as share of GDP is steadily rising
Source: World Economic Outlook (Sept. 2014), IMF

11. BANGLADESH HAS HIGHEST GROWTH PROSPECTS IN THE REGION.
-2
0
2
4
6
8
10
12
Bangladesh India Pakistan Sri Lanka
Projection
Percent

12. INVESTMENT FRIENDLY FINANCIAL INFRASTRUCTURE
 Government and Bangladesh Bank has created a financial
infrastructure and environment where any non resident can
safely invest in Bangladesh
 Government has taken many initiatives that have improved the
local financial market to operate efficiently and in friendly way
with the private sector.
 Bank Led mobile financial services, Electronic fund Transfer
Network(EFTN), BACH (Automated Clearing House) , MICAR
cheque, core banking software implementation, digitalization
of Bangladesh Bank and The national Payment switch and
RTGS has created a conducive, fast and reliable payment
system in the country.
 Mobile bank account, Agent banking and MFIs are involved in
the speedy distribution of remittance sent by the NRBs to their
beneficiaries

13. PROMOTION OF REMITTANCES AND INVESTMENT
 Bangladesh promotes formal channel remittances .
Bangladesh has given license to 3 NRB banks to promote
NRBs and Bangladeshi Diaspora investment in
Bangladesh.
 Bangladesh Bank has engaged with a number of
Diaspora organization working in the Europe, America to
promote the idea of investment in Bangladesh
 Remittances award has been introduced. This year we
provided Bangladesh Bank Remittances Award to 33
Bangladeshi
 Bangladesh Bank is building up a NRB database which
will help us to take targeted intervention for promoting
remittances and diaspora investment
 The near 26 billion foreign exchange reserve build up is
the support of our NRBs

14. INCENTIVES FOR INVESTMENT IN BANGLADESH
 For foreign Direct invest a number of incentives scheme
are in place and one of the most liberal FDI policy in
place
 No Restriction on equity participation
 Foreign investor’s employed technical people are not
subjected to personal tax
 Full repatriation of capital and profits are allowed
 Foreign entrepreneurs are, therefore, entitled to the same
facilities as domestic entrepreneurs with respect to tax holiday,
payment of royalty, technical know-how fees etc.
 Citizen/permanent resident ship are also provided
 General incentives for investment
 Tax Holiday
 Tax Exemption
 Concessionary duty on imported capital machineries

15. INCENTIVES FOR NRBS
 For Non-Resident Bangladeshi’s government has
created a number of investment opportunity.
 Investment of NRBs will be treated at par with FDI.
 Special incentives are provided to encourage NRBs to
invest in the country.
 NRBs will enjoy facilities similar to those of foreign
investors.
 they can buy newly issued shares/debentures of
Bangladeshi companies .

16. INCENTIVES FOR NRBS
 A quota of 10% has been fixed for NRBs in primary public
shares.
 Furthermore, they can maintain foreign currency deposits in
the Non-resident Foreign Currency Deposit (NFCD) account.
 Non Resident Investors taka Account-NITA- for portfolio
investment by NRBs
 Foreign Exchange regulations has been eased on many
areas
 Investment in Bond Market
 The US dollar premium bond
 The US dollar investment bond
 The wage earner’s development bond

17. BB SUPPORT TO PRODUCTIVE INVESTMENT
 Comprehensive support program for SME financing. Currently
SME credit to total credit in Banking sector is 25% where as
our neighboring country share is around 15%.
 BB is providing huge support to women entrepreneurs
development.
 Separate Women Development Unit
 Special Refinance scheme for agro based product processing
 Special fund for New entrepreneurs
 Emphasis on Energy efficiency and green financing
 JICA and French Development Bank supported program for
RMG industries compliance financing
 JICA supported program on FDI promotion
 Establishment of SEZ to foster investment by Japanese investors
 World Bank supported lending support program for medium
to long term credit market

18. YOU HAVE A COMPLAINT? THEN….
Hotline for customer's complaint:
Head Office:
Dial 16236
Fax : 0088-02-9530273
E-mail : bb.cipc@bb.org.bd
Send your complaint using the electronic complaint form:
http://www.bb.org.bd/complainbox/complainbox.php
You can also submit your complaint through our Facebook page:
https://www.facebook.com/BangladeshBankOfficial?fref=ts

19. PEOPLE TALK ABOUT US--

20. Bangladesh Bank is striving for building a positive
Bangladesh

21. Thank
you