BRAC BANK ::Paid homage to martyrs of the liberation war.

On the eve of the Independence Day, employees of BRAC Bank paid homage to martyrs of the liberation war. BRAC Bank employees gathered together, hoisted national flag and sang the National Anthem. They placed floral wreathe to makeshift national memorial (Smriti Shoudhu). They also lighted up candles to pay respect to the martyrs and freedom fighters. Mr. Syed Mahbubur Rahman, Managing Director and CEO; Ms. Tahniyat Ahmed Karim, Head of Human Resources; BRAC Bank Limited, and other officials attended the program. Mr. Syed Mahbubur Rahman, Managing Director and CEO of BRAC Bank said, "We are independent today because of the sacrifice of millions of people during the liberation war. We all at BRAC Bank got together here to remember and pay tribute to these valiant souls." "We believe, the fight is still on - but for an economically independent, beautiful Bangladesh," he added.

Credit Risk Management :: Reduction of Investment Risk

Former adviser to caretaker government Syed Manzur Elahi Saturday laid emphasis on proper credit risk management by banks, saying that the size of Bangladesh economy presently stands at US$ 100 billion which could have been double to 200 billion with better management of fund by the commercial banks. “The Credit Risk Management by the banks is significantly important as they are utilizing public money for proving credit for investment,” said Manzur Elahi, also the chairman of Apex Group, while speaking at the inaugural session of the ICC workshop here. International Chamber of Commerce (ICC)-Bangladesh organised the workshop on Credit Risk Management. The rate of Non-Performing Loans (NPL) of the state owned banks are the highest followed by Private Commercial Banks (PCBs) and Foreign Banks (FBs), he said, adding that as a result the liquidity gets affected which is ultimately hampering investment in development projects by the banks. Manzur Elahi appreciated the Bangladesh Bank (BB) Manual of Credit Risk, which, he said, was very comprehensive and if properly followed by banks it would definitely help reduce credit risk. “It will also help better management of fund. Bangladesh Bank should build up more professional capacity and increased manpower to monitor the risk,” he suggested.

 He, however, has apprehension that it would be difficult for the BB to monitor liquidity closely as more banks are entering in the financial market in future. Prof. Mamun Rashid, a noted money market critique, emphasized the need for appropriate tools and mechanism to mitigate the Credit Risk Management as it is not possible to eliminate credit risk totally. He also urges to ensure proper management of Credit Risk as well as best utilization of resources. Prof. Mamun thanked the HSBC Bank for their cooperation to organize the workshop. The workshop will provide participants with an overview of best practices in credit risk management and how to avoid unexpected losses, he said, adding that participants would also be able to benchmark their institution against industry best practices. Emphasis will be given on corporate credit risk management, he added. Johnson Chang, Credit Risk Officer, HSBC Bangladesh, who is also the resource person of the workshop, spoke at the inaugural session. Among others, ICCB Secretary General Ataur Rahman also spoke in the workshop. A total of 68 senior and mid-level executives from banks and financial institutions attended the workshop. A similar workshop will be held in Chittagong on March 25.

Banks ::Analysts stress better fund management

Bangladesh economy presently stands at $100 billion and this could have been double to $200 billion with better management of fund by the commercial banks, said a former caretaker government adviser yesterday. The credit risk management by the banks is significantly important as they are utilising public money for providing credit for investment, said Syed Manzur Elahi, also the chairman of Apex Group. Elahi spoke at the inaugural session of a workshop on credit risk management organised by International Chamber of Commerce (ICC) Bangladesh in the capital, the chamber said in a statement yesterday. He said the rate of non-performing loans of the state owned banks are the highest followed by private commercial banks and foreign banks. As a result, liquidity gets affected, ultimately hampering investment in development project by the banks, he said. Elahi appreciated the Bangladesh Bank manual of credit risk. He said the manual is very comprehensive and if properly followed will definitely reduce credit risk. It will also help better management of fund, he said.

 Elahi further suggested that Bangladesh Bank should build up more professional capacity and increased manpower to monitor the risk provided by the banks. He, however, feared that it will be difficult for the central bank to monitor liquidity closely as more banks are coming in the near future. Mamun Rashid, dean of BRAC Business School and chairman of ICC Bangladesh Standing Committee on Banking, Technique and Practices, emphasised the need for appropriate tools and mechanism to mitigate credit risk management. Johnson Chang, credit risk officer of HSBC Bangladesh and resource person of the workshop, and Ataur Rahman, ICCB secretary general, also spoke.