Meanwhile, the Dhaka Stock Exchange (DSE) published a list of 138 securities eligible for margin loans under the revised rules. Market insiders said the revised rules appeared more market-friendly and helped ease the uncertainty that had weighed on investor sentiment in recent sessions.

Against this backdrop, DSEX, the benchmark index of the DSE, gained 32 points, or 0.55 per cent, to reach 5,801 at 11:00 am, when the report was filed.

The DS30 index, comprising blue-chip stocks, advanced 6 points to 2,168, while the Shariah-based DSES index rose 6 points to 1,156.

Trading activity, however, remained slow, with turnover on the premier bourse reaching Tk 1.68 billion during the first hour of trading.

Market breadth was strongly positive, with 300 issues advancing against only 36 declining, while 45 remained unchanged, reflecting broad-based buying interest.

Techno Drugs emerged as the most-traded issue, with shares worth Tk 113 million changing hands during the first hour.

The Chittagong Stock Exchange (CSE) also opened higher. Its All Share Price Index (CASPI) gained 34 points to 15,528, while the CSE Selective Categories Index (CSCX) rose 22 points to 9,467 at 11:00 am.

At the Dhaka Stock Exchange, shareholder directors are elected by a small-broker-dominated base — a structural flaw that has become a roadblock to enforcing global best practices and good governance.City & Local Guides

According to DSE data, 59 of the exchange's 292 active brokerage firms are institutional — subsidiaries of banks and non-bank financial institutions (NBFIs) — while the rest have converted from sole proprietorships into private limited companies.

The top 40 brokers by turnover belong to this institutional group and together account for more than 70 per cent of daily market turnover in FY26, said DSE sources. Yet they hold no seats on the DSE board, since they remain a numerical minority when it comes to electing board candidates.

"The syndicate of formerly sole-proprietorship firms supports candidates who can pursue their interests on the board of the Dhaka bourse," said a senior executive of an institutional brokerage firm, wishing not to be named.

Standard Operating Procedures (SOP) and corporate governance of institutional firms differ from those of the formerly sole-proprietorship firms. So, the inclusion of their representatives on the board of the premier bourse would enhance discipline in the secondary market, alongside adding innovation to product diversification.

As per the demutualisation scheme, the DSE board comprises 12 members. Of them, six are independent, four are representatives of shareholding companies, one comes from a strategic partner, and the exchange's managing director serves as the twelfth member.

Shareholder directors serve the interests of the majority who have elected them, while independent directors, according to market insiders, are equally ineffective in enforcing rules and discipline, because they mostly join the board for honorarium and to elevate their corporate status. Some even lack practical knowledge about the market.

The Central Counterparty Bangladesh Limited (CCBL), a separate clearing company, is a prime example of this resistance from DSE shareholder directors. The company is yet to begin operations six years after its formation.

The DSE, which holds a 45 per cent stake in the CCBL, has not proceeded to register the company, and other stakeholders have consequently shown indifference. The CCBL must get registered with the BSEC before launching operations.

According to sources at the Bangladesh Securities and Exchange Commission (BSEC), CCBL's proposed board structure, which would include two representatives — both independent directors — from the DSE, was not acceptable to the DSE's shareholder directors.

The establishment of a clearing company is urgently needed to speed up settlement and to enable the introduction of new derivatives. The main function of the CCBL would be to clear and settle transactions executed on the exchanges' platforms without any failure.

The company will be able to trace investors' funds kept in their bank accounts. Hence, it will be able to implement restrictions on purchases in margin accounts.

On the other hand, if the CCBL is established, Dhaka bourse's TREC (trading right entitlement certificate) holders will no longer be able to avail of the free limit in trading. Brokers are currently allowed to conduct trades up to a free limit set at Tk 100 million, without depositing any margin.

A majority of brokers also have not yet met capital adequacy requirements. As per the risk-based capital adequacy rules, the minimum regulatory capital for brokers varies from Tk 50 million to Tk 150 million, depending on their operational landscape.

The exchange's shareholder directors have remained consistent in their position that small brokers are not capable of meeting capital adequacy requirements.

Capital adequacy for brokers is necessary to absorb operational and market losses, prevent broker defaults during rapid trade settlements, and protect general investors' funds.

Saiful Islam, president of the DSE Brokers Association, Bangladesh (DBA), said the representatives of the top five or even the top 10 brokers, in terms of transactions they execute, did not bother to participate in elections to come to the exchange's board.

"It's not possible for professional brokers to lobby to win elections. That's why we remain busy with our business," said Mr Islam, also a director of BRAC EPL Stock Brokerage.

He, however, stressed the importance of including professional brokers on the DSE board.

Wishing to remain anonymous, the chief executive officer (CEO) of a leading brokerage firm said the finance ministry and the regulatory body had often influenced the election of shareholder directors to the DSE board.

When asked, the managing director of Midway Securities, Md. Ashequr Rahman, said directors' ideas and knowledge were important for the development of the stock exchange and the market, but they could not overcome their tendency to work for the sake of boosting their own portfolios.

While talking to the FE, a senior executive of the DSE emphasised the need for training DSE board directors.

Before sitting on the board of the central bank, directors need to attend training programmes. "The DSE directors should also be trained before they take charge, and the securities regulator has a responsibility there," he said, adding that at least two representatives from top institutional brokers should be included in the board.

The DSE executive wanted to keep his identity undisclosed since he was not authorised to talk to the media.

Runner Automobiles PLC is moving ahead with its partnership with Chinese electric vehicle giant BYD Auto Industry Co, approving a series of measures to launch the import and distribution of BYD vehicles in Bangladesh.

At a board meeting on 20 August, the company approved the next course of action under its Master Supply and Manufacturing Agreement (MSMA) with BYD, according to a price-sensitive statement.

Under the agreement, Runner will sign a Technical Licence Agreement (TLA) with BYD and import and distribute BYD vehicles in completely built-up (CBU) condition.

The company said the initiative is aimed at establishing the necessary distribution network and preparing for the proposed project.

As part of the plan, Runner also intends to raise Tk250 crore through the issuance of preference shares, subject to regulatory and shareholder approvals.

The board's decision marks a significant step in Runner's expansion beyond its traditional motorcycle business into the passenger vehicle segment, particularly amid growing demand for electric and technologically advanced vehicles in Bangladesh.

BYD is one of China's leading clean energy firms, known for EVs, batteries, and renewable solutions. Founded in 1994, it has grown into a global EV powerhouse, competing with companies like Tesla. BYD produces cars, buses, and trucks, while also manufacturing advanced lithium batteries.

The company is expanding rapidly across Asia, Europe, and Latin America, playing a key role in the global transition to sustainable transportation.

Industry insiders say Runner has been preparing for such a venture. In May 2025, the company acquired land in Sreepur, Magura, and near its existing facility in Bhaluka, Mymensingh, with plans to establish a vehicle manufacturing plant in collaboration with a foreign partner.

Runner already has experience in automotive production, having invested around Tk300 crore to manufacture Bajaj three-wheelers. It also markets a range of international brands, including Eicher trucks and buses, KTM motorcycles, and Vespa scooters, alongside its own two-wheeler line-up.

Tk250cr preference shares

To support its expansion plans, Runner Automobiles has also approved the issuance of Tk250 crore of cumulative, non-participating preference shares with a 50% convertibility option. The preference share issue remains subject to approval from the relevant regulatory authorities and shareholders.

The board has also approved a proposal to double the company's authorised share capital to Tk400 crore from Tk200 crore.

The increase in authorised capital will allow the company greater flexibility to raise additional equity capital in the future as it expands its business.

Both proposals will be placed before shareholders at an Extraordinary General Meeting (EGM), scheduled for 8 October 2026 at 11:30am through a digital platform. The record date for the meeting is 13 September.

The increase in authorised capital requires approval from the EGM, Bangladesh Securities and Exchange Commission, Registrar of Joint Stock Companies and Firms and other relevant authorities. Runner did not disclose the investment required for the BYD project or provide details of the proposed terms of the preference shares.

Building BYD distribution network

Under the approved plan, Runner will import BYD vehicles as CBU units while establishing the required distribution and support network. The company is also preparing for the project through the technical licensing arrangement with BYD.

Industry observers see the partnership as an important development for Bangladesh's emerging electric vehicle market, where infrastructure, product availability and after-sales services remain key challenges.

Runner Automobiles is listed on the Dhaka Stock Exchange in 2019 and has traditionally focused on motorcycles and automotive products. The BYD partnership could diversify its revenue base and strengthen its position in the country's evolving automobile market.

Furthermore, Runner reported an 18% surge in consolidated revenue, reaching Tk878 crore for the July-March period of FY26. The company returned to profitability with a consolidated net profit of Tk13.70 crore and earnings per share (EPS) of Tk0.50, rebounding from a loss in the corresponding period of the previous year. Previously, for FY25, Runner disbursed a 10% cash dividend to its shareholders after posting a net profit of Tk10.23 crore.

Gold climbed to a more than three-month high on Friday, on track for its third straight weekly gain, aided by a break above key technical levels as the US Treasury’s buyback support plan dragged on the dollar.

Spot gold climbed 2.4 percent to $4,623.94 per ounce by 1:41 p.m. EDT (1741 GMT), earlier touching $4,631.99 — its highest since May 15. US gold futures settled 2.4 percent higher at $4,680.60.

Prices have gained over 5 percent so far this week, including their biggest one-day rise since early February registered on Wednesday.

The metal is also trading above all key moving averages, having broken above the closely watched 200-day moving average of around $4,513, a move technical analysts typically view as bullish.

“A big factor, of course, is technical... next step is $4,700 if this momentum continues, but also I think it’s been very much driven by a drop in the US dollar,” said Bart Melek, global head of commodity strategy at TD Securities.

The dollar languished near its lowest level since mid-May as investors questioned whether the US Treasury’s efforts to calm the bond markets might end up undermining confidence in the currency.

US Treasury Secretary Scott Bessent said on Thursday the government could expand Treasury buybacks further, a day after the department unveiled plans to double buybacks of longer-dated securities.

“Gold call option demand has risen sharply amid renewed demand for global macro-policy hedges, creating a mechanical price amplifier to both the upside and downside,” Goldman Sachs said in a note.

Goldman noted that weaker market conviction around US rate hikes following the Fed’s July pause and softer economic data have helped revive speculative interest in COMEX gold and demand for rate-sensitive gold ETFs, with rising and elevated call option demand likely amplifying the move.

On physical demand, the recent rally in prices deterred retail buyers in India, while demand in top consumer China held steady.

Poland’s central bank slowed gold buying to 7.8 tonnes in July, data showed on Friday.

The Bangladesh Financial Intelligence Unit (BFIU) has directed banks and other reporting agencies to immediately report details of accounts linked to any account they are ordered to freeze.

The directive was issued today (19 August) in a circular letter to the managing directors and chief executive officers of all reporting agencies in the country as part of efforts to prevent money laundering and terrorist financing.

Under the directive, once a reporting agency receives an order from the BFIU to freeze an account, it must promptly provide the intelligence unit with the basis for the freeze and details of other accounts linked to the frozen account.

In other words, if an account belonging to a person or entity is frozen over suspicious transactions, money laundering or related offences, the agency cannot stop at freezing that account. It must also identify other accounts linked to the same person or entity and provide their details to the BFIU.

The BFIU said Rule 26(4) of the Money Laundering Prevention Rules, 2019, specifically requires reporting agencies to provide information on the basis of a freeze and other accounts linked to the frozen account when ordered by the intelligence unit.

The circular stated that the directive was issued under powers granted by Section 23(1)(d) of the Money Laundering Prevention Act, 2012, and Section 15(1)(d) of the Anti-Terrorism Act, 2009.

The BFIU said the directive would strengthen the monitoring of other accounts held by the same person or entity after a suspicious account is frozen.

It is particularly intended to help identify and collect information on related accounts when money linked to money laundering or terrorist financing is transferred through or spread across multiple bank accounts, it added.

Desh General Insurance Limited has posted a 439% year-on-year growth in net profit after tax in the first half of 2026.

According to the company's unaudited financial statements for the January-June period, its net profit rose to Tk1.94 crore, with earnings per share (EPS) of Tk0.49, from Tk0.35 crore and EPS of Tk0.09 in the corresponding period of the previous year.

The insurer's first-half profit also surpassed its total annual profit for 2025. The company posted a net profit of Tk64 lakh, with EPS of Tk0.16, for the full year 2025.

The company's board has recommended a 2% cash dividend for shareholders, subject to approval at its annual general meeting (AGM), scheduled to be held on 9 September.

In the second quarter, from April to June, its EPS surged by 775% to Tk0.35, up from Tk0.04 in Q2 of 2025, its statements showed.

The net operating cash flow per share stood at Tk0.21 for the half-year, which was negative at Tk0.14 for the same time of 2025.

Its net asset value per share at the end of June stood at Tk11.84, slightly up from Tk11.35 as of December 2025.

On Thursday last, Desh General Insurance shares closed at Tk34.70 each at the Dhaka Stock Exchange (DSE), down 1.70% from the previous fiscal year.

As of July, out of its total shares, sponsor-directors held a 48.98% stake in the company, while institutional investors held 7.41% stake, and the general public held a 43.61% stake, as per data from the DSE.

The government has waived more than half of the total tax incidence on server imports to promote cloud infrastructure and data centre development amid growing adoption of artificial intelligence.

The National Board of Revenue (NBR) issued a gazette notification on August 17, making the concession effective immediately.

Currently, the total tax incidence on server imports is nearly 24 percent. Following the notification, the rate has been reduced to 9.5 percent, including 7.5 percent advance tax, said a tax official, seeking anonymity.

The move follows stakeholders’ negotiations with the government during the budget session for 2026-27, the official added.

The decision is expected to reduce the cost of server imports and support the expansion of digital infrastructure for businesses and organisations.

According to the NBR notification, the exemption applies to servers imported under HS Code 8471.50.90.

The notification said importers of the specified servers would be exempted from customs duty, regulatory duty, supplementary duty, if applicable, and value-added tax (VAT) as specified in the first schedule of the Customs Act.

The concession comes as demand for computing capacity and data infrastructure is rising with the growth of digital services and technology-driven businesses in Bangladesh.

“As we promised, we are committed to reducing the total cost of servers, as this will support the development of data centres and cloud infrastructure. These facilities will also play a critical role in accelerating artificial intelligence adoption in our country,” said Rehan Asad, telecom and ICT adviser to the prime minister.

Industry stakeholders welcomed the move.

“I think it is a positive move. In the budget, similar benefits were provided for imported laptops, which will help expand digitisation,” said AKM Fahim Mashroor, former president of the Bangladesh Association of Software and Information Services (BASIS).

“However, import duty on smartphones remains very high, resulting in low smartphone penetration,” he said.

“Smartphones are now the primary digital access devices for most people. Therefore, they should be treated in the same way as laptops and servers,” he added.

Investing a portion of remittance inflows in small and medium enterprises (SMEs) will create new jobs, strengthen the local economy and open up new opportunities for future generations, IOM Bangladesh Chief of Mission Laura Tomm Bonde said today (22 August).

"When migration is safe, regular and orderly, its benefits are not limited to an individual migrant," she said while addressing a mock parliamentary debate as chief guest at the Bangladesh Film Development Corporation (FDC) in the capital to mark International Day of Family Remittances 2026.

The event was jointly organised by Debate for Democracy and IOM Bangladesh, with support from the European Union.

Laura Tomm Bonde said safe, regular and orderly migration contributes to the overall development of families, society and the country, while every remittance reflects the hard work, resilience and sense of responsibility of Bangladeshi expatriates.

She emphasised that directing a portion of remittances into the SME sector would boost local economic momentum and create sustainable opportunities for future generations.

"IOM is working closely with the government to improve migration management and ensure the protection of migrants," she added.

Chairing the event, Debate for Democracy Chairman Hasan Ahmed Chowdhury Kiron described expatriate workers as the nation's economic heroes, saying remittances serve as a key driver of the economy and a major pillar of foreign exchange reserves.

He said migration is directly linked to the employment of nearly 25% of Bangladesh's workforce, adding that the national poverty rate would have been roughly 10% higher without overseas employment opportunities.

Kiron stressed the importance of channelling remittances into productive investments, particularly SMEs, rather than using them solely for consumption, to ensure the long-term financial stability of migrant families.

In the debate competition titled "Investing Remittances in the SME Sector is the Best Strategy for Protecting Migrant Families", Dhaka International University emerged as the winner, defeating the debating team from the State University of Bangladesh.

Bangladesh Bank (BB) has signed agreements with seven banks for participating in Tk 410 billion (Tk 41,000 crore) financing packages aimed at supporting productive and priority sectors of the economy.

The agreements were signed on Thursday at Bangladesh Bank headquarters in the presence of Deputy Governor Dr Md Kabir Ahmed, Executive Director Md Enamul Karim Khan and senior officials of the central bank and participating banks, said a press release.

The financing packages are part of a broader Tk 600 billion (Tk 60,000 crore) coordinated financing initiative designed to inject momentum into the economy, create employment, diversify exports and support productive sectors.

Of the Tk 410 billion (Tk 41,000 crore) fund, Tk 200 billion (Tk 20,000 crore) will be provided under a pre-financing scheme for supporting closed industries and the service sector, while Tk 50 billion (Tk 5,000 crore) will be allocated under a refinancing fund for the CMSME sector.

Another Tk 30 billion (Tk 3,000 crore) will be provided under a refinancing scheme to promote export diversification.

A further Tk 100 billion (Tk 10,000 crore) has been earmarked for agriculture and rural sectors to boost agricultural production, ensure food security and create employment.

Besides, Tk 30 billion (Tk 3,000 crore) will be provided under a refinancing scheme to create a special agriculture-based economic hub in northern Bangladesh.

The central bank said the financing initiative is intended to help maintain macroeconomic stability while supporting economic activities, investment and employment.

It also aims to ensure comparatively affordable financing through pre-financing and refinancing mechanisms.

The agreements were initially signed with Sonali Bank PLC, Bank Asia PLC, Eastern Bank PLC, City Bank PLC, Dutch-Bangla Bank PLC, Pubali Bank PLC and BRAC Bank PLC.

On behalf of Bangladesh Bank, Director of the Supervisory Data Management and Analytics Department Md Abdul Mannan signed the agreements, while managing directors of the participating banks signed on behalf of their respective institutions.

Deputy Governor Dr Md Kabir Ahmed highlighted the importance and multifaceted role of the Tk 410 billion (Tk 41,000 crore) fund at the signing ceremony.

Bangladesh Bank expects the participating banks to play an important role in channelling the funds to productive and priority sectors and in implementing the initiative effectively.

A meeting was held between the Bangladesh Securities and Exchange Commission (BSEC) and representatives of the World Bank Group to discuss the feasibility of establishing a Mortgage Refinance Company (MRC) in Bangladesh.

The meeting was held at the BSEC headquarters yesterday (19 August), according to a press release issued by the commission today.

The meeting discussed the proposed framework and role of a Mortgage Refinance Company in Bangladesh's housing finance sector.

The initiative aims to expand the country's housing finance sector while deepening the capital market.

Presided over by BSEC Chairman Masud Khan, the meeting was attended, among others, by BSEC Commissioners Tanwir Habib Rahman, Nahid Mahtab, Md. Nafeez Al Tarik, and Hossain Sadat. Representatives of the World Bank Group were also present at the meeting.

According to the press release, the meeting focused on detailed discussions about the potential institutional structure of the MRC and its role in developing housing finance.

Participants explored how the proposed entity could deepen the primary mortgage market by providing long-term refinancing facilities to financial institutions, enabling them to offer more accessible and longer-term mortgage loans.

The discussions also highlighted the MRC's potential role in mobilising capital market resources through instruments such as mortgage-backed securities, asset-backed securities and bonds.

The World Bank Group is currently conducting a feasibility study in response to a formal request from the Financial Institutions Division (FID) of the Ministry of Finance.

Based on the findings of the study, the relevant legal and regulatory frameworks will be formulated to facilitate the company's launch and operations.

In 2024, the government took the initiative to establish a Mortgage Refinance Company (MRC) to boost credit flows, unlock long-term investment and promote affordable housing.

Under the proposed structure, the MRC would operate under the direct supervision of Bangladesh Bank and raise capital through corporate bonds and mortgage-backed securities in the stock market.

The company would then use the funds to refinance banks and other lenders, enabling them to extend more mortgage loans to the housing sector.

Bangladeshi importers have suspended stone imports from India through Sonahat Land Port in Kurigram, protesting alleged substandard supplies, higher prices and reduced shipments by a syndicate of stone traders in Golakganj, Assam.

The indefinite suspension has brought port operations to a standstill since mid-July, leaving thousands dependent on port-related services without work and depriving the government of customs revenue.

Aminul Haque, assistant director (traffic) of Sonahat Land Port, said around 100 Indian trucks carrying stones normally enter the port each day, but imports have remained suspended amid a dispute between traders in the two countries.

“Sonahat Land Port earns more than Tk 4 crore in revenue on average every month. Not a single truck loaded with stone has arrived from India since July 18. As a result, no revenue has been generated,” he said.

Only stone is imported from India through the port, and export trade has not yet started, Aminul said.

Importers said Indian suppliers previously provided high-quality river stone boulders but are now sending smaller and lower-grade stones.

“We do not want to incur losses by importing substandard stones. Imports will remain suspended until quality products are supplied at reasonable prices,” said Abu Hena Masum, joint secretary of the Sonahat Land Port Importers and Exporters Association.

The stones fail to meet required size and quality standards after being processed through auto-crushing machines, making contractors involved in road, bridge and other infrastructure projects reluctant to buy them, he said.

Jahangir Alam Akmal, convener of the Sonahat Land Port Customs Clearing and Forwarding (C&F) Agents Association, said the influence of syndicates in India’s stone trade had increased.

Stone prices have also risen significantly, he said. River stones were previously imported at $11 per tonne, with the total landed cost in Bangladesh at about Tk 1,300 per tonne. The price has now increased to $13.5 per tonne, taking the import cost to around Tk 1,670 per tonne.

Jahangir also said stones were being loaded directly from quarries, resulting in excessive amounts of sand and soil being mixed with the shipments and increasing the risk of financial losses.

The suspension has left stone-crushing workers, loading and unloading labourers, truck drivers, transport workers and small traders in the area idle.

Soharab Hossain, a stone importer at Sonahat Land Port, said, “I had 700 tonnes of stone in stock, but all of it has already been sold. I do not have any stone left to sell. Although traders from different places have been contacting me to buy stone, I am unable to supply them.”

“When trucks loaded with stone arrive from India, the port remains busy and bustling with activity. But as no stone is coming now, the port almost seems haunted. I do not know when this deadlock will end,” he added.

Mofizul Islam, a loading and unloading worker at the port, said, “We have no work because no stones are arriving. We used to earn between Tk 700 and Tk 1,000 a day. Now we have to borrow money to support our families, and some workers are even taking high-interest loans.

“If this situation continues, we will be forced to look for other jobs.”

Another worker, Hamidul Islam, said more than 3,000 labourers were directly involved in stone unloading, crushing and related activities at the port. With imports suspended, all crushing machines have stopped operating, leaving most workers unemployed.

Truck driver Mizanur Rahman said transporting imported stones used to be his primary source of income. “Now the trucks remain idle, and our earnings have dropped sharply,” he said.

Traders and officials remain hopeful that the dispute will be resolved, although they are unsure when.

“We hope operations will return to normal once the problem is resolved,” the port’s assistant director Aminul said.

“It is not possible to say for certain when the deadlock at the land port will end. However, local traders at the port are maintaining regular communication with their Indian counterparts.”

“Discussions are underway between traders from both countries, and imports will resume once the issue is resolved,” Jahangir Alam Akmal said.

Inward remittances through mobile financial services (MFS) declined by nearly 21 per cent in June over the previous month, according to Bangladesh Bank (BB).

According to the BB figures, wage-earner remittances received through MFS stood at Tk 22.29 billion in June compared to Tk 28.18 billion in May.

The decline was recorded in both rural and urban areas, indicating a slowdown in the inflow of wage-earner remittances through digital financial channels during the month.

Remittance inflow through MFS in rural areas fell to Tk 12.40 billion in June from Tk 15.66 billion in May and that of urban areas declined to Tk 9.88 billion from Tk 12.52 billion during the same period.

An MFS official, preferring anonymity, said the fall in the inward remittance through MFS in June could be attributed partly to the seasonal impact following Eid-ul-Azha, which was observed in May this year.

Remittance inflows typically rise ahead of Eid festivals as migrant workers send more money to their families, resulting in a slowdown in the following month, he added.

On the other hand, total remittance inflow also declined by 18.02 per cent to over $2.82 billion in June FY 26 from $ 3.44 billion in May.

Mobile Financial Services (MFS) have significantly expanded financial inclusion in Bangladesh by providing accessible, secure and convenient digital financial services to millions of people, particularly in rural and underserved areas.

The growing use of MFS has made it easier for migrant workers' families to receive remittances quickly and conveniently, while also reducing their dependence on traditional banking channels.

Dr Masrur Reaz, Chairman of Policy Exchange Bangladesh, said the decline in remittances through MFS in June should not necessarily be viewed as a weakening of overall remittance inflows, as the movement of remittances between digital and traditional banking channels can vary from month to month.

He said the growing use of MFS has played an important role in expanding financial inclusion, particularly by connecting rural households and people with limited access to formal banking services to the financial system.

MFS statistics cover major providers such as bKash, Nagad, Rocket and Upay. The providers offer various services, including person-to-person (P2P), business-to-person (B2P) and government-to-person (G2P) transactions.

Meanwhile, the e-money balance held in MFS accounts declined significantly to Tk 195.07 billion in June from Tk 241.65 billion in May.

The number of MFS accounts increased marginally by 0.47 per cent to 256.97 million in June.

Total volume of MFS transactions also fell in June, standing at Tk 2.08 trillion, down 15.59 per cent from the previous month.

Despite the decline in the transaction volume and the amount of inward remittances through MFS, the continued expansion of MFS accounts indicates the growing reach of digital financial services across the country.

Dr Reaz said: "Digital financial services have become an important channel for delivering remittances to households, especially in rural areas. Therefore, any decline in MFS-based remittance needs to be assessed alongside overall remittance flows and the use of other formal channels.

Sustaining the growth of digital financial services would require greater consumer confidence, reliable digital infrastructure, competitive transaction costs and stronger safeguards against fraud and other financial risks, he said.

He further said Bangladesh needs to focus not only on increasing the number of MFS accounts but also on encouraging regular and productive use of those accounts, as deeper digital financial inclusion can help households save, make payments and access a wider range of formal financial services.

The US imposed 50% tariffs on some Canadian goods on Saturday after the two longstanding allies failed to reach a trade deal, with each side accusing the other of derailing days of talks.

The tariffs that came into effect just after midnight (0400 GMT) on some $20 billion of Canadian goods - things like wooden ice hockey sticks that are rarely used anymore - are far from an economic game-changer for the largest US trading partner after Mexico. That represents just over 5% of Canada's exports to the US.

But the new tariffs mark an increase in tensions between President Donald Trump and Prime Minister Mark Carney, and will likely make broader talks to renew the US-Mexico-Canada free trade agreement more difficult.

Carney said he had suspended trade negotiations and Canada would retaliate "dollar for dollar" on the new tariffs.

"I have decided to suspend trade negotiations with the US and have directed Canada's negotiators to return to Ottawa," Carney said in a statement.

"They (negotiators) have worked hard, in good faith, to defend the interests of Canadians throughout these negotiations up until the very last minute," he said. "However, last-minute changes in the US proposed terms were unfair, uneconomic, and called into question the reliability of any deal."

Carney, the only person to ever run the central banks of two major economies, was elected last year on promises to stand up to Trump, and remains broadly popular. Polls show most Canadians oppose making any concessions to Trump.

Hours earlier, the two sides had seemed close to an agreement that sources said would have lowered tariffs on steel, aluminium and autos and potentially brought American alcohol back to Canadian liquor stores.

"Tonight, Canada declined to finalize the trade deal under the terms agreed earlier this week," US Trade Representative Jamieson Greer said during a White House briefing.

"This is a missed opportunity for Canada to partner with the United States, which is the fastest-growing economy in the G7," Greer said.

A senior Trump administration official said the US offer would have put Canada in the best tariff position of any major exporter to the US, but that Canada had sought additional concessions, especially on steel, aluminium, autos and softwood lumber.

No additional talks are scheduled as the US implements the new duties, the official said.

Trump last month threatened to impose a raft of duties on a range of Canadian imports including wine, furniture, dairy products, cement, clothing, fishing rods, hockey equipment.

The tariffs, which do not qualify for preferential treatment under the US-Mexico-Canada free-trade agreement, open up some already vulnerable sectors to potential severe damage that could lead to job losses and business closures, trade experts have said.

The decision by the US administration followed three days of talks in Washington between Canada's minister for trade with the US, Dominic LeBlanc, and Greer.

The new duties add to existing US tariffs on steel, lumber and autos which have taken a major hit in the last 18 months, although the malaise has been largely contained within these sectors.

The Invest Bangladesh Authority, formed by merging the Bangladesh Investment Development Authority (Bida), Bangladesh Economic Zones Authority (Beza) and Public-Private Partnership Authority (PPPA), formally began operations today (20 August).

The government issued a gazette notification bringing the Invest Bangladesh Act, 2026, into force.

The notification, signed by Principal Secretary to the Prime Minister ABM Abdus Sattar by order of the president, said the government had brought the Act into effect using powers granted under Section 1(2).

However, the full organisational structure of the new authority, including its wings and teams, will be developed in phases, said Nahian Rahman Rochi, former Bida executive member and head of business development.

"With the gazette now in effect, everything will operate under the Invest Bangladesh name. Formation of the new teams and wings, along with the remaining work, will now begin in phases," Rochi told The Business Standard.

He said the authority had formally become operational and the remaining organisational work would proceed gradually.

"We are delighted that, after months of work, Invest Bangladesh has now gone live and begun its journey. The genesis of this initiative came directly from investors telling us that they wanted one front desk for all investor services," Rochi said.

Our objective will be to make Invest Bangladesh that single point of access, providing investors with a more coordinated, seamless and accountable experience throughout their investment journey, he added.

Under the law, the Invest Bangladesh Authority will operate as a statutory body, with its headquarters in Dhaka. With government approval, it will be able to establish branch offices elsewhere in the country and liaison offices abroad.

The authority will have a chairman and seven members to run its regular operations, with the chairman serving as chief executive.

Its key responsibilities will include identifying investment opportunities, promoting domestic and foreign investment, removing investment barriers and coordinating with relevant ministries and government agencies.

Following the merger, all existing assets, records, contracts, liabilities and other matters of Bida, Beza and PPPA will be transferred to the new authority. Employees of the three dissolved agencies will also work under Invest Bangladesh.

The new authority is expected to provide more integrated services to investors and reduce barriers to investment, formally completing the long-running merger process.

Qatar will extend all possible support to Bangladesh in ensuring energy security, particularly amid the country's current challenges, the country's Prime Minister and Foreign Minister Sheikh Mohammed bin Abdulrahman bin Jassim Al Thani has assured.

He made the assurance when Foreign Minister Khalilur Rahman called on him at his office in Doha today (19 August), according to a press release from Bangladesh's Ministry of Foreign Affairs.

During the meeting, Khalilur conveyed Prime Minister (PM) Tarique Rahman's greetings to the Qatari leadership.

The Bangladesh foreign minister also expressed solidarity with Qatar and commended its "constructive and responsible" role in promoting peace, security and stability in the region.

Sheikh Mohammed described Bangladesh as a "brotherly country" and assured Khalilur Rahman of Qatar's support for Bangladesh's energy security.

The two sides also discussed bilateral cooperation and issues of mutual interest.

Sheikh Mohammed congratulated Khalilur Rahman on his election as president of the 81st session of the United Nations General Assembly and reiterated Qatar's commitment to supporting him in carrying out his responsibilities successfully.

Khalilur invited the Qatari prime minister to visit Bangladesh at a mutually convenient time.

Later, the foreign minister met Qatar's Minister of State for Foreign Affairs Sultan bin Saad Al-Muraikhi and discussed issues of mutual interest.

PM's Finance and Planning Adviser Rashed Al Mahmud Titumir, State Minister for Power, Energy and Mineral Resources Aninda Islam Amit, Foreign Affairs Adviser Humaiun Kobir and senior officials from both countries were present during the meetings.

LNG supply from the Excelerate Energy-operated floating storage and regasification unit (FSRU) at Maheshkhali stopped this afternoon (19 August) as the terminal ran out of LNG, further worsening Bangladesh's gas crisis.

Several Petrobangla and Energy Division sources told The Business Standard that the terminal stopped supplying gas to the national grid around 3pm due to a shortage of fresh LNG cargo.

With Excelerate offline, national gas supply fell to around 2,185 million cubic feet (mmcf) a day, leaving an average shortfall of about 500 mmcf.

At around 8pm, LNG-based gas supply stood at 561 mmcf, all of it from Summit's FSRU, now the country's only operating LNG terminal. The remaining 1,624 mmcf came from domestic gas fields.

The latest disruption came just four days after Excelerate resumed partial operations following a 25-day shutdown caused by a fire on 21 July. The terminal had gradually cut supply since Monday as its remaining LNG stock dwindled.

Bangladesh has two FSRUs at Maheshkhali – Excelerate's terminal has a regasification capacity of 600 mmcf a day, while Summit's can handle 500 mmcf.

No fresh cargoes in pipeline

Petrobangla oversees LNG imports with approval from the Energy Division, while its subsidiary Rupantarita Prakritik Gas Company Limited (RPGCL) handles procurement.

Sources at Petrobangla and RPGCL said several LNG cargoes had been procured through direct purchases outside the regular procurement process to secure supplies at lower prices. Four such cargoes were scheduled to arrive this month, but none have arrived yet.

As a result, Excelerate's terminal, despite being operationally ready, has been unable to resume supply.

An LNG cargo is expected to arrive tomorrow and may be connected to Summit's terminal. A source said a cargo for Excelerate could arrive on 23-24 August, meaning the terminal may remain out of operation for several more days.

The latest shutdown reduced LNG-based gas supply from around 660 mmcf on Tuesday to about 550-561 mmcf today, while total national supply fell to roughly 2,180-2,185 mmcf.

The Bangladesh Bank has allowed state-owned Rupali Bank to release nearly $3.2 million in remaining syndicated foreign-currency loans and open a new letter of credit (LC) for SS Power-1 Limited, a power plant owned by the controversial S Alam Group.

The central bank issued the instruction today (19 August), granting the exemption under Section 121 of the Bank Company Act, 1991. The directive was sent to all banks in the country.

According to the Bangladesh Bank circular, Rupali Bank has been authorised to release $ $3,197,561.28 from the remaining portion of the syndicated foreign-currency loan approved for SS Power-1 and open an import LC for the company.

The central bank has also exempted the facility from the provisions of Section 27Ka(3) of the Bank Company Act, which restricts banks from providing certain facilities to loan-defaulter companies.

The latest approval follows another Bangladesh Bank directive issued on 16 August, which allowed Rupali Bank to open import LCs for SS Power-1 against a 100% cash margin. The facility is set to remain in force until December 2027.

However, Bangladesh Bank imposed a specific condition on the latest facility.

The central bank said it would bear no liability arising from the loan facility, while Rupali Bank would not be allowed to seek any financial assistance from Bangladesh Bank in the future in connection with it.

According to Bangladesh Bank officials, SS Power-1 is currently operational and supplying electricity to the national grid. A shortage of raw materials could disrupt generation, prompting the central bank to allow the company to open LCs despite its status as a loan defaulter. Similar facilities have previously been provided to companies to keep production and employment running.

SS Power-1 operates a 1,320MW coal-fired power plant in Gandamara of Banshkhali, Chattogram. The plant was built as a joint venture between S Alam Group and two Chinese companies, with its two units each having a generation capacity of 660MW.

The plant began commercial generation in September 2023 and supplies electricity to the national grid.

S Alam Group owns 70% of SS Power-1, while China's SEPCO III and HTG Development Group hold the remaining 30%.

The Bangladesh Bank data shows loans taken by various S Alam Group entities, both directly and through other entities, exceed Tk2.25 lakh crore, with a significant portion already classified as defaulted.

The Dhaka Stock Exchange (DSE) has issued a fresh list of 138 marginable securities, providing a clear roadmap for investors and brokerage houses under the newly implemented regulatory framework.

The updated list, which details the companies qualifying for credit facilities, follows the recent gazette notification of the "Bangladesh Securities and Exchange Commission (Margin) Rules, 2025." This overhaul is aimed at boosting market liquidity and restoring investor appetite by providing more flexibility in leverage-based trading. Among the 138 firms, eight are from B category.
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Under the revised rules, shares of listed companies in the 'A' and 'B' categories are now eligible for margin loans if their price-to-earnings (P/E) ratio remains within 40. This is a significant shift from previous restrictions, allowing a broader range of fundamentally sound companies to be traded with borrowed funds.

Furthermore, the regulator has addressed specific concerns in the insurance sector by raising the maximum allowable price-to-book (P/B) ratio for life insurers to 3, a significant jump from the initially proposed limit of 1. This ratio is calculated by dividing the latest closing price by the audited net asset value per share.

The newly released list is dominated by the market's most robust entities. Telecommunication giants Grameenphone and Robi Axiata, along with blue-chip manufacturing and consumer firms like British American Tobacco, Walton Hi-Tech, and Berger Paints, are prominent features. The pharmaceutical sector also maintains a heavy presence with market leaders such as Square Pharma, Beximco Pharma, Renata, and IBN SINA included in the marginable bracket.

Leading commercial lenders, including BRAC Bank, City Bank, Eastern Bank, Dutch-Bangla Bank, and Pubali Bank, continue to be staples for margin investors, alongside top-tier non-bank financial institutions like IDLC and IPDC Finance.

In the energy segment, investors can avail of loans for state-owned fuel distributors like Padma, Jamuna, and Meghna Petroleum, as well as United Power and MJL Bangladesh. The list further encompasses major players in the steel and cement sectors, such as BSRM Steels and LafargeHolcim, as well as technology firms like ADN Telecom and Genex Infosys.

However, the BSEC has maintained a cautious approach regarding riskier segments of the market. Securities categorised under 'Z' (junk stocks), 'N' (newly listed), and 'G' (greenfield) remain strictly excluded from margin facilities. Additionally, shares traded on the SME board, Alternative Trading Board (ATB), and the Over-the-Counter (OTC) platforms do not qualify for credit due to their relatively higher risk profiles and lower liquidity.

NCC Bank is set to scale up its Shariah-compliant operations after receiving in-principle approval from Bangladesh Bank to convert 20 of its conventional branches into full-fledged Islamic banking units.

According to a price-sensitive disclosure filed with the Dhaka Stock Exchange today (19 August), the central bank communicated its approval through a letter dated 17 August 2026.

The bank stated that the conversion process will be carried out in strict accordance with the "Guidelines for Conversion of a Conventional Bank to an Islamic Bank" and other relevant regulatory frameworks issued by the central bank.
Currently, NCC Bank operates a very limited Islamic banking network, with only four dedicated branches in Dhaka, Chattogram, Feni, and Thakurgaon. The addition of 20 more branches represents a fivefold expansion of its dedicated Shariah-based service points, reflecting the growing demand for Islamic financial products in the country.

Despite the news of a strategic expansion, the bank's shares saw a marginal correction on the premier bourse. NCC Bank's share price edged down by 0.65% to settle at Tk15.20 today.

Meanwhile, the lender reported a consolidated earnings per share of Tk2.08 in the first half of 2026, marking a 12% growth from Tk1.86 in the corresponding period of 2025.

The bank attributed the rise in profitability primarily to an increase in investment income and the recovery of provisions previously kept against shares.

At the end of June 2026, the bank's consolidated Net Asset Value per share stood at Tk26.39, up from Tk26.15 in December 2025.

However, the bank's cash flow position witnessed a decline. The consolidated net operating cash flow per share dropped to Tk6.68 for the first six months of 2026, compared to Tk10.96 in the previous year.

The bank explained that the decline in cash flow was due to a surge in the purchase of government securities for trading, higher loan disbursements, and advance payments for office rents during the reporting period.

The government has set out a five-year plan to clean up the banking sector, with a focus on recovering bad loans, tightening supervision, improving governance and restoring depositor confidence.

The plan comes as banks grapple with record non-performing loans (NPLs), weak governance, political interference and lending to politically connected businesses. These problems have eroded both capital and profitability of many banks, with state-owned lenders particularly exposed.

By December last year, NPLs in the country’s banking sector reached Tk 5.57 lakh crore, equivalent to 30.6 percent of total loans, according to official data.

Over the same period, banks’ return on equity fell from 9.42 percent in 2016 to minus 16.11 percent in 2025.

The five-year framework, titled “Five-Year Strategic Framework for Reform and Development (July 2026-June 2031)”, was prepared by the General Economics Division of the Planning Ministry and approved by the National Economic Council on May 18. It was released yesterday.

The government will roll out the reforms in three overlapping phases.

Those are containing immediate risks in the first year, rebuilding banks over the next two years and pursuing deeper reforms in years three to five.

FIRST YEAR: CONTAIN THE DAMAGE

The first year will focus on high-risk banks, bad loans and depositor protection.

Operational autonomy of the Bangladesh Bank will be enforced on an interim basis, while high-risk banks will face stricter supervision and regulatory action.

The central bank will identify willful defaulters and take legal action against them. It will also enforce stricter loan classification and provisioning rules to prevent bad loans from piling up.

The government will apply fit-and-proper criteria to bank boards and senior management and restructure boards that fail to meet the requirements.

The Deposit Protection Fund will be made operational. The government will strengthen the capital position of merged banks and begin reimbursing depositors, while interim arrangements will be introduced to repay depositors of distressed banks.

The immediate priority will be to enforce rules, address governance failures, recover bad loans, protect depositors and maintain liquidity.

NEXT, REBUILDING BANKS

Over the next two years, the government plans to strengthen governance, risk management and loan recovery while building stronger financial safety nets.

The central bank will receive full operational autonomy, with risk-based supervision and stress testing introduced.

Loan rescheduling will be tightened, large borrowers will face closer monitoring, and banks will have to comply more strictly with lending rules. Board appointment procedures will also be standardised, with limits on board tenure and family representation.

Banks will have to disclose financial data at the individual bank level and follow reporting standards aligned with Basel III -- a global regulatory framework.

DEEPER REFORMS IN FINAL PHASE

The final phase will focus on making banks more efficient and competitive while reducing risks to the wider financial system.

The plan calls for stronger governance, greater transparency, better data systems and stronger supervisory capacity at the Bangladesh Bank. Legal and institutional changes will also be introduced to strengthen its operational independence and bring regulations closer to international standards.

The government plans to improve the recovery of bad loans through specialised financial tribunals, stronger legal enforcement and faster resolution mechanisms.

The plan also proposes a fully functioning deposit protection system, including the pay-box model, to protect depositors and strengthen market discipline.

BANKS MUST FIX THEIR BALANCE SHEETS

The framework makes clear that simply increasing credit will not solve the banking sector’s problems.

Banks must first repair their balance sheets through restructuring, disciplined write-offs and faster recovery of defaulted loans. Then they can expand lending safely to small and medium-sized enterprises, agriculture and productive industries.

The plan also identifies political interference as a major problem.

Weak board oversight, preferential lending and limited accountability have contributed to poor risk management and the buildup of bad loans, it says.

WHO WILL OVERSEE THE REFORMS?

The Bangladesh Bank will lead regulatory and supervisory reforms, while the Financial Institutions Division will coordinate legal and policy changes involving state-owned banks and other government-owned financial institutions.

Progress will be measured against indicators covering capital adequacy, asset quality, liquidity, governance, depositor confidence and transparency.

The central bank will conduct annual reviews, with a mid-term assessment in FY2028 to measure progress and recommend changes.

The government says the reforms are urgent as Bangladesh prepares for LDC graduation, which could reduce access to concessional financing and external liquidity support and increase reliance on the domestic financial system.

The bigger challenge, however, will be implementation.