1 Newspaper Article Analysis

News-1
TITLE: Banks to face random inspections
AUTHOR: Rejaul Karim Byron
NEWSPAPER: The daily star
DATE: Wednesday, February 19, 2014.
SUBJECT: This article is about how banks of Bangladesh set up their system to control anti-
money laundering and terrorist financing recommended by FATF.
SUMMARY:
Financial Action Task Force (FATF) recommends to set banks system to control anti-money
laundering and terrorist financing through the system of tracking financial transaction with
the help of goAML software from United Nations.
The priority of the FATF is to ensure that global action is undertaken to combat money
laundering and terrorist financing. In recognizing the threat posed to the financial system and
to financial institutions, the FATF has been at the forefront of measures to counter attempts to
abuse the financial system to further criminal and terrorist purposes. FATF assess the overall
effectiveness of anti-money laundering (AML) and counter financing of terrorism (CFT)
systems. So random inspections will held among banks.
The main idea of this article can be summarized as Our countrys banks will inspected
randomly by FATF for by the year end. Bangladesh Bank has already says to the banks to
submit their cast transactions through goAML software and set up supporting software to
automatic identification of suspicious transactions made earlier. So that AML and CFT
system can be implemented.
Our countrys cost for letter of credit is higher compared to foreign banks. Bangladesh Bank
Governor Atiur Rahman said The charge should come down a lot now, and I hpne you
exercise your best negotiation skills with the foreign banks in this regard.
The required 28 action items set by FATF is almost fulfilled including criminalizing money
laundering and procedures for the confiscation of funds related to money laundering.

2 Newspaper Article Analysis
M Aslam Alam, secretary of the finance ministry's banking division said Now that
Bangladesh has come out of the grey list, it cannot sit idle. The follow-up guidelines of the
FATF will have to be fulfilled,
According to my opinion the author wrote this article effectively. The recommendation is set
for the banks is announced by the officials of Bangladesh Bank. So the information is reliable
and effective.



















3 Newspaper Article Analysis
News-2
TITTLE: Syndicated loans require benchmark interest rate: analysts.
AUTHOR: Star Business report of The daily star
NEWSPAPER: The daily star
DATE: Friday, February 21, 2014.
SUBJECT: This article is about that analysts thinks that syndicated loans should have
benchmark interest rate.
SUMMARY:
Benchmark interest is the minimum interest rate investors will accept for investing in a non-
Treasury security. Officials of banks and other financial institutes said in a seminar on
syndicated financing that benchmark interest rate will work as a reference rate to determine
interest rate in syndicated financing.
Maroof ur Rahman Mazumder, director and head of capital markets at Standard Chartered
Bank said, Although the Dhaka inter-bank offered rate (DIBOR) was launched earlier, it is
not in use at present. We all should agree to rejuvenate DIBOR to make syndicated financing
popular. They think that DIBOR (Dhaka inter-bank offered rate) and IM (Information
Memorandum) to marked maturing should be used to make syndicated financing popular. He
also said, This will decrease paper use and make circulation of IM faster.
The current situation says that in lending money lead arranger makes an agreement with
borrowers and ask other financial firm to participate in lending. Mesbah Uddin Ahmed, head
of structured finance of IDLC Finance said, At present, lead arranger makes an agreement
with the borrower and then asks other financial institutions to participate in the lending. But
participating banks may have different risks and credit appetites.
The participants of the seminar told that lender should come with more innovative solutions
for project financing. Bangladesh Bank promised to extent their regulatory support in
syndication financing. On the other hand Public private partnership requires large funds.
Parvez Akhter, senior investment manager of DEG-KFW Office Dhaka said, In order to

4 Newspaper Article Analysis
bring international development financial institutions in local syndication, lead arrangers
need to incorporate in-depth analysis of the business model and business prospect in the IM.
Selim RF Hussain, managing director of IDLC Finance, said, Risk sharing and meeting
financial requirements in diversified sectors have been possible due to loan syndication.
Officials of banks and other financial institutions were in this photo taken by IDLC takes part
in this seminar organized by IDLC with The Daily Star at Radison hotel in Dhaka. And IDLC
believe that there is more to loan syndication than just fund agreements and participations.


















5 Newspaper Article Analysis
News-3
TITTLE: New banks cautious about lending.
AUTHOR: Sajjadur Rahman
NEWPSAPER: The daily star
DATE: Friday, February 28, 2014.
SUBJECT: This article is about cautious in lending in the 9 banks has been licensed last year
by Bangladesh Bank.
SUMMARY:
In Bangladesh has 56 scheduled banks among them 56 are private and 9 are foreign and 8 are
state owned. Bangladesh bank has identified only two banks are aggressive in lending. These
banks are NRB GLOBAL and NRB COMMERCIAL. First one lent 303 crore and other
lent 426 crore.
The graph show the new banks lending in percent of deposits as of January. Here NRB global
loan-deposit ratio is 99.72%. and other is 74.25%. Abdul Quddus, managing director of NRB
Global Bank said, were a bit aggressive in lending. After all, we have to do business.
On the other hand Modhumoti and farmers banks is tight in lending. Modhumoti bank lent
only 9% of its deposit. NRB Bank has 23.51% loan-deposit ratio. Muklesur Rahman,
managing director of NRB Bank said, We are going slow, steady and carefully.
Due to successful lending process NRB GLOBAL received approval to open 10 new branch
from Bangladesh bank.
South Bangla Banks (SBAC) has lent its 67.89% of capital that is 311.55 Crore. But is has
been down to 61% during February 24. Rafiqul Islam, managing director of SBAC said, We
were the only bank among the new nine banks to see an operating profit in 2013. They made
a operating profit of 14 crore.
The loan deposit of Meghna, Midland and Union banks is about 60% of its deposit.






6 Newspaper Article Analysis
News-4
TITLE: Two foreign banks join NBRs e-payment system.
AUTHOR: he article was written by Sohel Parvez
NEWSPAPER: The Daily Star
DATE: Wednesday, February 19, 2014
SUBJECT: This article is about e-payment system of NBR that is National Board of
Revenue to collect taxes online.
SUMMARY:
Standard Chartered Bank and Citibank have joined this e-payment system with Sonali Bank.
So that clients of these banks can pay their taxes to NBR using their account.
NBRs e-payment system doesnt support paying large amount of taxes by account to account
transaction but they receive small individuals taxes through credit and debit cards.
NBR has received 5 Crore taxes since this system starts. A Sonali Bank official said, We
expect a spiral in the payment of large amounts of taxes through the e-payment gateway
More banks will with online banking facilities will join the foray this year.
Citibanks clients can pay their tax online and Standard Chartered Banks client can able to
generate receipt of tax payment. So its a great services to payment services of taxes, vat and
customs duty. Rashed Maqsood, managing director of Citibank said that Sonali Bank to
integrate Citi into the tax payment architecture of the government, which currently supports
tax payments for individuals only.