The state-owned electricity distributor Dhaka Electricity Supply Company (Desco) is seeking Bangladesh Bank's intervention to recover around Tk250 crore of its revenue and employees' provident and gratuity funds trapped in six financially distressed banks.

In a letter sent to Bangladesh Bank Governor Mostaqur Rahman on 11 August, Desco Managing Director Brigadier General Shamim Ahmed urged the central bank to take measures to facilitate the return of the funds.

Desco said the deposits needed to be encashed urgently to ensure uninterrupted electricity supply, safeguard government revenue, and meet its financial obligations on time.

Desco has Tk47.94 crore deposited with Global Islami Bank, Tk55.27 crore with Union Bank, Tk59.96 crore with Social Islami Bank, and Tk46.27 crore with First Security Islami Bank.

Its deposits in these four banks total Tk209.44 crore. The four lenders, along with Exim Bank, were merged last year to form the state-owned Sammilito Islami Bank.

Desco also has Tk22.53 crore with Padma Bank and Tk17.36 crore with Commerce Bank.

Apart from Padma Bank, the other five banks were previously controlled by controversial businessman Saiful Alam, commonly known as S Alam.

Desco said the banks had failed to return its deposits even after they matured. The utility made repeated requests, both in writing and verbally, but received no positive response.

A senior Bangladesh Bank official, speaking on condition of anonymity, said funds stuck in the five merged banks would be repaid to customers in line with the applicable rules.

"Padma Bank and Bangladesh Commerce Bank, however, lack the capacity to repay large sums quickly," the official said. "Desco will therefore have to wait to recover its funds."

Banks remain financially fragile

The government merged First Security Islami Bank, Social Islami Bank, Global Islami Bank, Union Bank, and Exim Bank last year to form Sammilito Islami Bank. The five banks had combined deposits of Tk1,36,546 crore.

Following the merger, the government adopted a repayment policy under which small depositors would be prioritised. The BB has also provided funds from the Deposit Protection Fund to help address the banks' massive non-performing loans and liquidity shortages.

Meanwhile, Padma Bank remains in severe financial distress, according to officials of Bangladesh Bank's Off-site Supervision Department, which monitors banks' financial health.

The bank is grappling with high non-performing loans and a capital shortfall, with nearly 90% of its loans classified as non-performing, they said.

Bangladesh Commerce Bank is also facing a range of financial difficulties. According to BB data, the bank's 66% of its total loans were classified as non-performing as of 31 March.

The bank also had a substantial provision shortfall. Against a required provision of Tk1,004 crore, it had set aside only Tk375 crore as of the end of March.

Deposit repayment framework

The BB has a framework for returning deposits to customers of the five merged banks.

Under the Deposit Protection Act 2026, the maximum protected deposit is at Tk2 lakh, while depositors' claims have been preserved in the new bank under the resolution framework.

In July, the finance minister said depositors of troubled banks would eventually receive their principal and interest, although full repayment could take time because of the banks' losses.

In January, Bangladesh Bank initially allowed customers of the five banks to withdraw up to Tk2 lakh. In July, the limit was raised to Tk10 lakh for urgent needs, including medical treatment for depositors and their immediate family members.

However, the guidelines did not clearly specify arrangements for returning deposits held by institutions such as Desco.

There is a fundamental collision between the economy on paper and the economy at the grocery store. When the government announced on August 11 that inflation had eased to 8.32 percent -- its lowest point in eight months -- the number was not greeted with relief, but with immediate suspicion. Sceptics cried data manipulation, while the finance minister rushed to defend the math. Yet, lost in this crossfire is the actual anatomy of the number itself, which explains why a supposedly positive economic update can feel so entirely disconnected from reality.

Unlike Gross Domestic Product (GDP) growth or trade deficits, inflation is an intimate statistic. It dictates survival. It is felt every time a family buys rice, pays for cooking oil, or boards a bus. This burden falls overwhelmingly on lower-income households, who spend the vast majority of their earnings on unavoidable necessities and have no luxury expenses to cut when times get tough. Because every citizen can instantly audit the government’s claims against their own daily survival, inflation figures are politically combustible everywhere in the world.

The fiercest outrage over this month's data stems from a basic misunderstanding of what a slowing inflation rate actually means. A drop from 9.16 percent in June to 8.32 percent in July does not mean the cost of living went down. It simply means prices are getting more expensive at a slightly slower pace.

Commerce Minister Khandaker Abdul Muktadir today (18 August) said that he is not satisfied with the current cost of living and commodity prices, stressing that reducing prices requires improvements beyond market monitoring.

Responding to a question about the market situation six months after taking office, he said energy and electricity prices, lending rates, productivity, transport, and infrastructure all influence commodity prices.

He said that Bangladesh's logistics costs account for around 16% of GDP, compared with an international average of about 10%. "As a result, additional costs are incurred in transporting goods from production centres to retail markets, with the burden ultimately falling on consumers."

Improved transport connectivity, uninterrupted and affordable energy, and a more efficient supply chain could create opportunities to reduce prices, the minister said while talking to reporters after a meeting with a visiting Confederation of Indian Industry (CII) delegation at the ministry in Dhaka, according to a press release.

He urged people not to expect immediate results, saying developing the necessary infrastructure and energy capacity takes time.

The government is working to ensure new LNG infrastructure, gas supplies, and uninterrupted operations at power plants, Muktadir said.

On seasonal price hikes of green chillies, onions and vegetables, the minister said supply shortages emerge during certain periods of the year despite increased domestic production.

To reduce these seasonal gaps, the Agriculture Ministry is taking initiatives to expand planned production, including contract farming, he added.

Muktadir said simultaneous improvements in energy, infrastructure, production, and supply systems would help stabilise the market and gradually reduce the cost of living.

Bangladesh will strengthen research, technology and knowledge-sharing cooperation with China to modernise the traditional silk industry to increase productivity and sustainability, Md Shariful Alam, state minister for textiles and jute, said yesterday.

He made the remarks while speaking as the chief guest at a conference on sericulture research and development in the context of strategic cooperation between China and Bangladesh, held in Rajshahi.

The state minister said the government had taken initiatives to reopen state-owned closed industries in line with its election manifesto.

Alongside reopening the factories, the government plans to expand markets and attract both domestic and foreign investment, Shariful said.

Organised by the China-Bangladesh Silk Research Centre (CBSRC), with support from the Bangladesh Sericulture Development Board, the conference was a joint initiative of the board and China’s Zhejiang Sci-Tech University.

The minister said the government aims to modernise the entire silk value chain, from mulberry cultivation, silkworm rearing and cocoon production to silk yarn manufacturing, weaving, product development, branding and marketing.

“Research and technological cooperation are extremely important to achieve this goal,” he said, adding that China’s experience in silk research, technological innovation and industrial development could play an important role in advancing Bangladesh’s silk sector.

Bangladesh would strengthen cooperation between Chinese research institutions and universities, the Bangladesh Sericulture Development Board, and other relevant research organisations.

The cooperation could cover the development of high-yielding and climate-resilient mulberry varieties, improved silkworm breeds, disease and pest management, modern silk yarn production, quality testing and value-added silk products, he said.

Shariful also said the government plans to establish stronger links among researchers, farmers, entrepreneurs and industrial establishments so that research findings can be applied at the field level and translated into commercial opportunities.

“Modern technology, skills development and investment” would also be used to strengthen the industry.

Highlighting Rajshahi’s historical importance in the sector, the minister said the city was known as the “Silk City” and that the industry could contribute significantly to rural employment, higher farm incomes, women’s empowerment and overall economic development.

He said Rajshahi Silk had already received geographical indication (GI) recognition and that initiatives would be taken to further strengthen its quality, product diversity, branding and position in international markets.

He stressed the need to make the silk industry more environmentally sustainable while improving productivity and competitiveness. Abu Sayeed Chand, a member of parliament from the Rajshahi-3 constituency; Sharaf Uddin Ahmed Chowdhury, secretary to the textiles and jute ministry; Md Toufiq Al Mahmud, director general of the Bangladesh Sericulture Development Board; and Prof Nusrat Jahan Nipa, chief coordinator of CBSRC, along with academics, researchers, businessmen and senior ministry officials, also attended the conference.

US 30-year Treasury yields rose to their highest level since 2007 on Tuesday as stalled talks to end the US-Iran war and worries of an imminent escalation sent oil prices above $90 a barrel, fanning fears of inflation and jolting markets.

Rising concerns over fiscal spending amid increasing debt issuance are also weighing on the bond markets even as investors digest a recent run of soft US economic data that has led to traders scaling back rate hike expectations.
The yield on the benchmark US 10-year Treasury note rose 1.7 basis points to 4.739 percent.

The yield on the 30-year bond rose to 5.327 percent, hitting its highest level in 19 years.

The bond selloff also spread to Japan and Europe with Japan’s benchmark 10-year government bond yield rising to a 30-year peak.

Germany’s bund futures and French OAT futures dipped 0.2 percent.

Germany’s 10-year Bund yield touched its highest level since May 2011 on Monday, while France’s 10-year yields hit a 17-year high.

Vasu Menon, managing director of investment strategy at OCBC, said competition for capital from AI hyperscalers, a rising US budget deficit and Fed Chairman Kevin Warsh’s departure from transparency to an opaque policy stance, were all contributing to higher Treasury yields.

“Rising long US bond yields is a risk that investors must bear in mind going forward... bond investors are best placed to manage this risk by focusing more on shorter duration bonds,” Menon said.

The hyperscalers’ surge in borrowing, at a time when governments are still spending heavily, has been a leading factor pushing up yields, investors said, as buyers demand higher returns to keep purchasing the flood of bonds hitting markets.

CONCERNS ABOUT GROWING US DEBT

Investors are also worried about inflation risks, especially with the critical Strait of Hormuz remaining effectively shut and the talks to end the US-Iran conflict at an impasse.

Iran said it would shift to a “fully offensive” military posture because efforts to negotiate a permanent end to the war have stalled, a senior Iranian official told Reuters as Washington ruled out extending their June ceasefire agreement.

US stocks fell on Monday, with the Dow and S&P 500 each shedding roughly half a percent, and the Nasdaq dropping about a third of a percent.

Thierry Wizman, global FX & rates strategist at Macquarie Group, said the prospect that the two sides’ competing claims over the Strait would continue to prevent crude from flowing remained a best case scenario in the short-and medium term.

“The worst-case scenario is a trigger-happy resumption of kinetic fighting,” he said.

Two recent Treasury auctions also drew attention for their yields as the sale of 10-year notes cleared at a high yield of 4.683 percent, the highest in 19 years, while the 30-year bond auction stopped at 5.216 percent, a 25-year peak.

Anthony Saglimbene, chief market strategist at Ameriprise Financial, said for much of the last 15 years, investors operated in a market where stable-to-falling interest rates consistently supported higher stock prices.

“However, last week’s Treasury auctions were a reminder that the landscape is shifting,” he said.

“When it comes to longer-dated Treasury issuance, investors are increasingly focused and concerned about the growing amount of US debt and America’s lack of fiscal discipline.”

The oil market is increasingly behaving as though disruptions to Middle East energy supplies are not a temporary shock but a new reality.

Nearly six months after war erupted between the US and Iran, hopes for a diplomatic breakthrough have faded.

An interim ceasefire agreed on June 17 has effectively collapsed, the 60-day negotiating period has expired, and neither Washington nor Tehran appears willing to compromise over the future of the Strait of Hormuz.

Instead, both sides are digging in.

Iran warned on Monday it would escalate tensions unless Washington fully implemented the interim peace deal within weeks. A senior Iranian official told Reuters that, if diplomacy failed, Tehran would launch a “timely and precise” attack to break the US naval blockade.

US President Donald Trump said on July 7 that the pact was “over.” He has since insisted Washington was moving closer to defeating Iran.

The stalemate is increasingly forcing traders to contend with restrictions on shipping through the Strait of Hormuz, the world’s most important oil chokepoint, that could persist for months.

That shift in expectations helps explain why crude oil prices have stabilized around $90 a barrel. Crude has surrendered some of its panic premium since the early days of the conflict, but remains roughly 50 percent higher than at the start of the year.

The market may no longer fear an immediate collapse in supplies, but neither does it expect a swift return to normal.

MOUNTING PAIN

Behind the political rhetoric, the economic costs are mounting for both sides. Iran is under growing strain from the conflict and US blockade.

Inflation exceeded 80 percent in July from a year earlier, according to an ISNA report, while crude exports have fallen to 294,000 barrels per day (bpd) so far this month from 1.7 million bpd in 2025, according to analytics firm Kpler.

The US is also paying a price.

Trump has warned Americans to prepare for high fuel costs, an uncomfortable admission for a president who campaigned on lowering energy prices and now faces congressional elections in November.

The average price of gasoline stood at $4.06 per gallon on Monday, up 29 percent from a year ago, according to the American Automobile Association.

Yet while diplomats remain deadlocked, the oil market is adapting.

SMOKE AND MIRRORS

The biggest uncertainty is the scale of supply disruptions. Flows of crude and refined products through Hormuz, which averaged about 18 million bpd before the war, fell to 4.8 million bpd in July and have averaged around 2 million bpd so far in August amid Iranian attacks and a US blockade, according to Kpler.

Some of that lost volume has been offset by higher exports from the Fujairah terminal in the United Arab Emirates and from Saudi Arabia’s Red Sea coast.

Even those alternative routes, however, are under pressure after Yemen’s Iran-backed Houthis imposed a blockade on Saudi exports through the Bab el-Mandeb Strait, at the Red Sea’s southern entrance.

Taken together, Middle East exports averaged 9.5 million bpd this month, less than half the 21 million bpd in 2025, according to Kpler.

But those figures may understate — or overstate — actual exports because more regional oil appears to be moving in the shadows.

Evidence is mounting that Gulf producers are relying more heavily on vessels that disable tracking systems while transiting Hormuz and Bab el-Mandeb.

The UAE, in particular, appears to have built a network of “dark tankers” that shuttle crude through Hormuz before transferring cargoes in the Gulf of Oman.

The result is an unusual situation in which traders know supplies have been disrupted but cannot determine by how much.

Indeed, UAE crude exports averaged 3.38 million bpd so far in August, compared with 3.2 million bpd in 2025.

Yet those volumes could come under pressure after Iran reportedly struck several tankers linked to Abu Dhabi National Oil Company during voyages through Hormuz.

How much oil is actually reaching consumers has therefore become one of the market’s biggest unknowns.

As long as the Hormuz impasse remains unresolved, uncertainty will hang over energy markets.

Other indicators suggest elevated oil prices could persist even if crude exports stabilize.

REFINING PRECIPICE

Refined fuel markets have become exceptionally tight.

Global refinery throughput in July was nearly 5 million bpd below year-earlier levels at 81 million bpd, according to the International Energy Agency, reflecting the loss of refining capacity in the Middle East and damage to Russian facilities from Ukrainian drone attacks.

The shortfall has been offset by a surge in US fuel exports, with American refineries running at or near record utilization rates (USOIRU=ECI).

That support may soon fade.

Seasonal maintenance ahead of winter and hurricane season threaten to curb operations along the US Gulf Coast.

Lower refining activity will hamper efforts to rebuild depleted fuel inventories, helping sustain high product prices and refining margins, which have climbed to record levels.

The inventory picture is particularly concerning.

Global observed oil stocks fell by 2.4 million bpd in the second quarter, their largest quarterly draw in at least a decade, according to the IEA.

US diesel inventories are at their lowest for this time of year in three decades, while gasoline stocks are at their weakest seasonal level since 2012.

Freight markets are sending a similar message.

Benchmark rates for very large crude carriers transporting oil from the Middle East to China have surged from around $300,000 per day in early July to $490,000, equivalent to $5 a barrel and nearly 10 times higher than at the start of the year, according to LSEG data.

Those rates reflect shipowners’ reluctance to enter conflict zones and growing demand for tankers to move oil and fuel from more distant suppliers such as the US and Brazil.

The longer the Hormuz impasse drags on, the less this looks like a temporary supply shock and the more it resembles a structural reshaping of global oil trade.

Markets are finding it harder to absorb a world of opaque supply flows, shrinking fuel inventories, strained refining capacity and no credible diplomatic path toward restoring trade through the Gulf.

Ultimately, that growing realization, rather than battlefield developments, may keep oil prices elevated well into next year.

Bangladesh Bank (BB) has instructed all scheduled banks to facilitate bank account opening for foreign nationals with valid and up-to-date work permits from the Bangladesh Investment Development Authority (BIDA).

In a circular issued yesterday, the central bank said foreign employees, particularly those working under the A3 visa category, must receive their salaries and allowances through local bank accounts.

The A3 visa is issued to specialists, consultants and workers employed on projects under bilateral or multilateral agreements.

According to BIDA’s annual report, the agency issued 5,491 new work permits and approved 10,407 extensions in FY 2024-25

Foreign nationals working in Bangladesh under other employment visa categories are also required to receive their salaries through bank accounts, BB said.

Banks have been instructed to process account-opening applications under their Know Your Customer (KYC) procedures, provided the applicants have valid and up-to-date work permits.

According to BIDA’s annual report, the agency issued 5,491 new work permits and approved 10,407 extensions in fiscal year 2024-25. In the previous fiscal year, it issued 5,761 new permits and approved 9,947 extensions.

The US dollar held near multi-month lows against most major currencies on Tuesday as traders walked back expectations of near-term monetary tightening, although the imminent threat of an escalation in the Middle East war left sentiment fragile.

The euro eased away from two-month highs of $1.1614 it touched on Monday, last fetching $1.1571.

Sterling was at $1.3534, just shy of the three-month peak it hit in the previous session.

Data in the past few weeks have pointed to a softer US economy, including unexpected job losses last month and mild inflation readings, leading investors to scale back expectations of a rate hike by the US Federal Reserve.

Traders expect a 35 percent chance of a rate increase at the Fed’s September meeting, compared with 52.2 percent a week ago, according to the CME FedWatch tool.

They are also no longer fully pricing in a hike by the end of the year.

Most economists polled by Reuters in the past week expect the Fed to keep its interest rate unchanged next month and through year-end, a view they have held for the past several months.

Analysts though remain cautious about where inflation may head, even as long-dated bond yields scale multi-decade peaks, especially with the critical Strait of Hormuz remaining effectively shut and the US-Iran conflict simmering.

“Inflation has been above target for most of the past five years, and whilst a high 2 percent annual pace may prove acceptable to the Fed, it leaves the inflation process with little to no breathing room in a world of constant supply shocks,” said Nohshad Shah, head of EMEA fixed income sales at Citadel Securities.

Iran said it would shift to a “fully offensive” military posture because efforts to negotiate a permanent end to the war have stalled, a senior Iranian official told Reuters as Washington ruled out extending their June ceasefire agreement.

The more than five-month long conflict has upended the global rates outlook and stoked inflationary concerns through most of the year.

It would be unfair to judge the government solely by economic outcomes, as policy measures take time to produce results. But outcomes cannot be ignored either.

Government data on inflation, GDP growth, exports, investment, private-sector credit growth and ADP implementation show little improvement from the previous situation.

The BBS has not published employment data since 2024, but there is little evidence that job creation has improved. ADP implementation has declined over the past six months, private-sector credit growth has slowed and non-performing loans have increased.

The government cannot be held responsible for all these developments. It has taken some measures, but they have yet to produce better outcomes.

However, the government can be held directly responsible for high inflation. How much has it done to control inflation, including measures promised in its election manifesto? What steps has it taken to strengthen institutions?

Monetary policy has shifted from contractionary to expansionary. Quantitatively expansionary measures were introduced even before interest rates were cut.

Non-performing institutions have again been given access to loans, while a Tk60,000 crore stimulus package has been introduced and interest rates reduced.

If these measures had followed successful efforts to contain inflation, it would have been clear that the economy was ready to shift its focus to growth.

The government could also have given Bangladesh Bank greater autonomy, but did not. The latest appointment of the governor instead highlighted how its autonomy has been undermined. As a result, many government decisions have not been forward-looking.

The government has presented a large budget with commitments to structural reforms, but implementation remains limited. Apart from introducing e-invoicing for VAT administration, few effective measures have been taken.

The budget also includes several deregulation commitments. The government is merging the PPP Authority with Bida, but this is hardly a major reform. Making the one-stop services of Bida, Beza, Bepza, the PPP Authority and the Hi-Tech Park Authority fully functional is more important. Operationalising the National Single Window is also crucial.

A cabinet task force has been formed to implement deregulation. However, some budget commitments will require amendments to existing laws.
The government has made some positive moves on trade. Signing a Cepa with South Korea is one of its notable achievements. Once ratified, it could help improve Bangladesh's poor record on free trade agreements.

Bangladesh has also made progress in its trade ties with China. The government also deserves credit for resisting pressure to scrap the trade agreement with the US. If it was withdrawn unilaterally, garment exports could have come under significant pressure.

Overall, the past six months have brought little economic relief to people's lives. The government has introduced and expanded some social protection programmes, but their impact remains limited and marginal at the macroeconomic level.

The country's macroeconomic stability has improved during the first six months of the current government.

The decline in foreign exchange reserves has been halted, while exports and remittances have increased.

According to the IMF's methodology, forex reserves have remained stable at around $20-22 billion.

Higher export earnings and remittance inflows have helped generate a current account surplus. Some stability has also returned to the banking sector.

However, there has been no meaningful reform at the micro level of business and trade. Businesses say they have seen little improvement in their day-to-day operations.

From land mutation and dealings with deputy commissioners' offices to the clearance of imported goods, corruption and extortion persist at every stage.

Concerns over inflation, investment and employment also persist. High prices of essentials remain a major concern for ordinary people, employment has not improved, and concerns over the investment climate have intensified.

Problems also persist in clearing imports. Although goods are supposed to be cleared within a day, the process often takes a month or even a month and a half.

The government itself faces financial constraints and cannot meet its expenditure from revenue earnings, forcing it to borrow more from the financial sector.

Political parties should understand the state of the economy and the country's investment climate. Many IMF recommendations have been adopted, but implementation remains inadequate.

Macroeconomic stability has returned but without micro-level reforms, these gains will not be sustainable. Reducing bureaucratic hurdles, eliminating corruption and adopting business-friendly policies are essential.

The Confederation of Indian Industry (CII) has proposed forming two joint business task forces on digital transformation and infrastructure investment and financing to strengthen trade and investment ties between Bangladesh and India.

Indian businesses and investors have also stressed the need to make cargo handling at land ports, including Benapole, faster and more efficient.

Commerce Minister Khandaker Abdul Muktadir shared the details with reporters after a meeting with a visiting CII delegation at the commerce ministry in Dhaka today (18 August), according to a press release.

The delegation included leaders of India's leading business body and representatives of several prominent companies, some of which already have investments in Bangladesh.

Muktadir said Indian companies operating in Bangladesh had raised concerns over difficulties in transporting raw materials and goods through land ports.

Improving cargo handling efficiency at Benapole specifically and easing cross-border movement of goods would reduce transportation and raw material costs and boost bilateral trade, he said.

The Indian business representatives proposed two business-to-business task forces involving entrepreneurs from both countries.

One task force would focus on sharing India's experience and cooperation in digital transformation, while the other would explore ways to increase Indian investment and financing in Bangladesh's infrastructure sector.

The proposal is also expected to be discussed with the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI).

Welcoming the initiative, the commerce minister said Bangladesh would require major infrastructure investment to become a trillion-dollar economy, including in railways, highways, ports, and LNG infrastructure.

He said Indian investment in these sectors would be viewed positively if it proved beneficial for Bangladesh.

Muktadir said political and commercial relations could not be viewed entirely separately, but greater trade, investment, and business engagement would benefit both countries.

Citing the European Union and other regional trade blocs, he said regional cooperation was important for economic progress.

Shares of listed companies in the ‘A’ and ‘B’ categories with price-to-earnings (P/E) ratio up to 40 will qualify for margin loans, while the revised rules also eased the thresholds for margin calls and forced sales.

The Bangladesh Securities and Exchange Commission (BSEC) has issued a gazette on the revised margin rules, 2025, allowing intermediaries to expand their lending but with stronger regulatory oversight.

The final rules came after extensive discussions over changes to the earlier framework, particularly on the criteria for determining securities eligible for margin financing.

Market operators said the revised framework would help increase liquidity in the secondary market by widening access to margin financing while maintaining safeguards against excessive risk-taking.

The final rules dropped the proposed price-to-book (P/B) ratio as an eligibility criterion for banks, non-bank financial institutions (NBFIs) and general insurers and instead retained the P/E-based test for deciding eligibility, except for life insurers.

The draft rules had proposed a maximum P/B ratio of 3 for banks and 1 for insurance companies, arguing that asset-based businesses are better assessed through book value as their earnings fluctuate due to provisioning and interest-rate movements.

For life insurers, however, the maximum allowable P/B ratio has been raised to 3 from the proposed 1. The ratio will be calculated using the latest closing price divided by audited net asset value per share.

The final rules raised the P/E ceiling to 40 from the proposed 30 for ‘A’ and ‘B’ category shares. Stocks with a P/E above 40 will therefore not qualify for margin loans. The P/E ratio will be calculated based on EPS reported in the financial statements for the latest four quarters.

Securities under the G (Greenfield), N (Newly Listed) and Z categories, as well as securities traded on the SME board, Alternative Trading Board (ATB) and Over-the-Counter (OTC) platforms, will remain outside the margin-lending facility because of their relatively higher risk and lower liquidity.

Akramul Alam, head of research at Royal Capital, said the revised framework sought to strike a balance between facilitating leveraged investment and containing the risks associated with it.

“Lenders and investors will enjoy greater flexibility as the final rules raised the P/E ratio threshold from 30 to 40,” he said.

The retention of the P/E-based test for most securities, while introducing the P/B test only for life insurers, indicates that the commission ultimately opted for a targeted approach rather than applying the proposed valuation measure broadly across banks, NBFIs and insurance companies, he said.

Margin ratio remains 1:1

The maximum margin financing ratio remains unchanged at 1:1, meaning a merchant bank or stockbroker cannot provide loans exceeding the amount of equity maintained by an investor.

An investor with Tk 1 million in equity, for example, can receive up to Tk 1 million in margin financing.

The one-year margin agreement will be automatically renewed unless either party terminates it.

“The automatic renewal provision will help reduce administrative and other related costs,” said Mr Alam.

Minimum investment cut

The final rules have reduced the minimum investment required to qualify for margin lending to Tk 300,000 from Tk 500,000.

An investor must therefore have at least Tk 300,000 invested in the secondary market to obtain margin financing.

The lower threshold is expected to broaden access to such loans while keeping very small investors outside the leveraged market.

Margin calls eased

The rules have significantly eased the thresholds for margin calls and forced sales. If a client’s equity falls below 50 per cent of the margin financing, compared with the proposed 70 per cent, the lender will ask the client to deposit the required amount.

If the client fails to meet the margin call within three working days, the lender can sell part of the securities to restore the client’s equity to 50 per cent of the margin financing.

The threshold for forced sales has also been reduced to 25 per cent from the proposed 50 per cent. Once the client’s equity falls below this level, the lender can sell the required securities without prior notice to adjust the margin position.

The rules also protect lenders against losses caused by execution delays. A lender will not be held liable for losses if a mandatory sell order is not executed immediately or is delayed after being placed.

Lenders’ exposure capped

A merchant bank or stockbroker can finance up to four times its actual capital, down from the proposed five times. This provision is intended to prevent lenders from taking excessive leverage while providing margin loans.

The rules also cap exposure to a single security at 20 per cent of a financier’s total outstanding margin portfolio, unchanged from the proposed limit. The measures are aimed at preventing excessive leverage by financing institutions and concentration of exposure to individual securities.

Governance tightened

Every margin financier will have to maintain a dedicated bank account exclusively for the financing activities. Existing branch-based or digital booth-based accounts must be closed by February 2027 unless specifically approved by the commission.

Each margin financier must also establish a risk management committee comprising at least two members. The committee will have to meet at least four times a year, with its proceedings submitted to the board of directors.

The Strait of Hormuz will remain shut until the US meets the conditions ​of an interim deal signed with Iran in June, the top ‌Iranian negotiator Mohammad Baqer Qalibaf said in comments published by state media today (18 August).

These conditions include ​the US lifting its blockade of Iranian ports, lifting ​oil sanctions, releasing Tehran's frozen assets, and ending threats and military ⁠operations on all fronts, Qalibaf told parliament.

The ​memorandum of understanding, clinched on 17 June, quickly ​unravelled over a dispute about control of the Strait of Hormuz, the narrow waterway through which a fifth ​of global oil and liquefied natural gas ​flowed before the war.

US President Donald Trump said the ‌deal ⁠was "over" on 7 July and a week later Iran's foreign ministry declared it "suspended".

Under the MoU, Iran and the US had committed to ​negotiating a final ​deal — ⁠covering broader issues such as the fate of Iran's nuclear programme — in ​a maximum of 60 days, extendable ​by mutual ⁠consent.

A senior Iranian official told Reuters on Monday that Iran would now shift to a "fully offensive" posture ⁠due ​to the stalled diplomatic ​efforts to secure a permanent end to the conflict.

Remittance inflow to Bangladesh rose 21.6% year-on-year to $4.74 billion in the first 48 days of the current fiscal year, while the country's gross foreign exchange reserves stood at $37.24 billion today (18 August).

The central bank data were shared by Mohammad Ibrahim Munsi, joint director of the Accounts & Budgeting Department (A&BD-2) of Bangladesh Bank.

According to Bangladesh Bank data, the country received $4.74 billion in remittances between 1 July and 17 August, 2026, compared with $3.90 billion during the corresponding period of the previous fiscal year.

Reserves stood at $32.43 billion under the International Monetary Fund's Balance of Payments Manual (BPM6) methodology.

In August alone, remittance inflow reached $1.88 billion during the first 17 days, up 32.6% from $1.42 billion received during the same period in August 2025.

On 17 August, Bangladesh received $98 million in remittances in a single day.

The strong inflow of remittances has contributed to the country's foreign exchange position, with gross reserves standing at $37.24 billion as of 18 August, according to Bangladesh Bank.

Eight listed closed-end mutual funds did not declare any dividends for their unitholders for the year ended June 30, 2026, despite the Dhaka Stock Exchange’s main index rising 18 percent during the fiscal year.

Closed-end mutual funds collect a fixed amount of money from investors, usually for a 10-year period, and invest the money in shares, bonds and other assets. When the funds make profits, they distribute part of the earnings among unitholders, while fund managers receive management fees. The units are listed and traded on the stock exchange.

The eight funds are ICB AMCL Sonali Bank Limited 1st Mutual Fund, SEML FBLSL Growth Fund, Prime Bank 1st ICB AMCL Mutual Fund, ICB AMCL Third NRB Mutual Fund, ICB AMCL Second Mutual Fund, IFIL Islamic Mutual Fund-1, ICB Employees Provident MF 1: Scheme 1 and Phoenix Finance 1st Mutual Fund.

Strategic Equity Management Limited manages one of the funds, while ICB Asset Management manages the other seven.

In contrast, Reliance One, the first scheme of Reliance Insurance Mutual Fund, declared a 10 percent cash dividend for its unitholders. ICB AMCL First Agrani Bank Mutual Fund declared a 4 percent dividend.

AIMS Bangladesh manages Reliance One, while ICB Asset Management manages the ICB AMCL First Agrani Bank Mutual Fund.

During the last fiscal year, the DSEX, the benchmark index of the Dhaka Stock Exchange, rose sharply from 4,865 points to 5,762 points.

ICB Chairman Abu Ahmed said the funds were formed when the stock market was at a very high level. The market later fell sharply, reducing the value of their investments.

He said the funds did not sell their shares when prices were falling, resulting in substantial losses.

“Although the market has recovered over the past year, the funds have not fully recovered their losses,” he said.

He said the funds also have to set aside provisions for their previous losses even when they make profits now. This has prevented them from paying dividends.

“To be honest, the funds were not managed very well at that time. If they had sold the shares when prices started falling, the losses would have been much lower,” Abu Ahmed said.

He said ICB had asked the Bangladesh Securities and Exchange Commission (BSEC) for a one-year waiver from the provisioning requirements under IFRS 9.

“Even a partial waiver would have allowed the funds to pay dividends, as they have made profits over the past year,” he said.

The Bangladesh Bank (BB) has directed all scheduled banks to facilitate the opening of bank accounts for foreign nationals working in Bangladesh under Employment Visa categories, subject to compliance with applicable know-your-customer (KYC) requirements.

The directive was issued in a circular by the Banking Regulation and Policy Department-1 of the central bank today (18 August).

According to the circular, foreign nationals working in Bangladesh under the 'A3' visa category, as well as other Employment Visa categories, can receive their salaries and allowances through bank accounts.

The central bank said the Ministry of Home Affairs, in a circular issued on 19 April 2026, clarified that foreign nationals entering Bangladesh under the A3 visa category must obtain a work permit from the Bangladesh Investment Development Authority (Bida) and renew the permit within its validity period.

The terms and conditions of the work permit require employers to pay the salaries and allowances of foreign workers through banks, the circular said.

Against this backdrop, the central bank instructed banks to take necessary steps to open bank accounts for foreign nationals holding valid work permits under the A3 or other Employment Visa categories, subject to fulfilment of applicable KYC requirements.

The directive was issued under the authority vested in Bangladesh Bank under Section 45 of the Bank Company Act, 1991.

The circular was issued to the managing directors and chief executive officers of all scheduled banks.

CAPM BDBL Mutual Fund 01, a closed-end mutual fund, reported a net profit of Tk6.77 crore for the fiscal year ended 30 June 2026 but decided not to declare any dividend for the year.

The decision was finalised during a trustee board meeting held yesterday, according to a regulatory filing with the stock exchange.

The fund reported an earnings per unit (EPU) of Tk1.35 for the 2025-26 fiscal year.

According to the audited financial statements, the fund's total Net Asset Value (NAV) stood at Tk55 crore on a cost-price basis and Tk45.19 crore on a market-price basis as of 30 June 2026. Consequently, the NAV per unit at cost price was Tk10.97, while the NAV at market price stood at Tk9.01, against the face value of Tk10 per unit.

The fund has set 9 September as the record date for its annual closing.

The decision to skip the dividend comes at a time when the fund is approaching a structural transition. Earlier, the trustee called a Special General Meeting (SGM) of its unitholders to determine the future of the scheme.

The meeting, scheduled for 7 October, will allow unitholders to vote on whether to convert the scheme from a closed-end to an open-end mutual fund or proceed with its formal redemption.

The record date for determining unitholder eligibility to attend and vote at the SGM has been set for 15 September.

Closed-end mutual funds in Bangladesh have recently come under regulatory focus, with the Bangladesh Securities and Exchange Commission (BSEC) encouraging funds trading at significant discounts to their NAV to consider conversion or liquidation to protect investor interests.

CAPM BDBL Mutual Fund 01 is managed by CAPM Company Limited, while the Investment Corporation of Bangladesh (ICB) serves as its trustee and custodian.

Preparation is afoot to rebase four key macroeconomic indicators for better reflecting changes in the structure of Bangladesh's economy with upgraded quality of official data, officials say.

Bangladesh Bureau of Statistics or BBS has planned to rebase the Consumer Price Index (CPI), Producer Price Index (PPI), Wage Rate Index (WRI) and Index of Industrial Production (IIP) under its Statistical Capacity Enhancement and Modernisation Project.

People familiar with the matter have said the economy has diversified significantly in recent years, with new products, industries and services making larger contributions to economic activity.

They said that updating the indicators would make them more representative and accurate.

"The government wants to produce quality data and ensure data governance," says a senior official of the BBS's national accounting wing.

CPI, which is used to measure inflation, is the most closely watched of the four because of its implications for households, businesses, monetary policy, and investment decisions.

The agency plans to collect much of the information for the new CPI through computer-assisted personal interviewing (CAPI). WRI is also expected to use CAPI-based data collection.

It is considering January or later of the current fiscal year as the starting point for the new CPI and WRI series.

And PPI and IIP under the revised methodology could be released from June 2027.

The CPI basket is also likely to undergo significant changes.

The existing basket is based largely on consumption information from the Household Income and Expenditure Survey or HIES.

Some goods and services included in the basket may no longer have sufficiently broad consumption, particularly where their use or consumption is concentrated in specific regions or among limited groups of consumers.

The BBS authorities, therefore, plan to remove less-representative items and introduce products and services that better capture current consumption patterns.

The PPI, which tracks changes in prices received by producers and provides an important measure of upstream inflationary pressure, also needs updating as the production base has expanded and diversified.

Meanwhile, IIP is an important indicator of industrial activity and is used in assessing broader economic performance, including GDP trends.

Updating its composition would help the index better capture changes in industrial production.

The rebasing comes as the BBS separately prepares to revise the country's GDP (gross domestic product) estimates.

The agency has already begun work to rebase GDP from FY2025-26, with several surveys being under way to bring previously under-measured economic activities into the national accounts.

The broader effort reflects BBS's push to modernise statistical production, widen data coverage and make economic indicators more closely aligned with the structure of the country's changing economy.

Bangladesh is moving towards financing its development with its own resources instead of relying on loans, Finance and Planning Minister Amir Khosru Mahmud Chowdhury has said.

He made the remarks while inaugurating the Revenue Conference 2026 at the Bangladesh-China Friendship Conference Center.

Addressing Prime Minister Tarique Rahman, Khosru said bold revenue reforms were being pursued under his leadership, laying the foundation for a modern, cashless and contact-free revenue system.

“Bangladesh will no longer remain a country dependent on loans. God willing, it is now moving towards development through its own financing,” he said.

Khosru said achieving the Tk 6 trillion revenue collection target was the government’s most important task, saying it would help build the prosperous Bangladesh envisioned by the prime minister.

He also expressed confidence that Bangladesh would overcome the challenge of graduating to a middle-income country by 2029 and build a trillion-dollar economy by 2034.

Referring to the restoration of democracy, Khosru said an elected government had been formed after a long struggle and sacrifice, making it their “sacred duty” to fulfil people’s aspirations.

Call to Businesses

Khosru described the business community as the driving force of the economy, saying development was impossible without investment and job creation. He pledged continued government support.

At the same time, he urged businesses to help meet the revenue target by paying taxes and VAT on time.

While acknowledging complaints over administrative complexity and officials’ behaviour, he said measures were being taken to address them. But he called for strict enforcement against persistent tax evaders to protect honest taxpayers and ensure a level playing field.

Khosru also stressed accountability among revenue officials, saying taxpayers must be treated impartially and respectfully.

“Harassing an honest taxpayer and giving undue benefits to a dishonest taxpayer are equally unacceptable,” he said.

The conference was jointly organised by the Finance Ministry’s Internal Resources Division and the National Board of Revenue.

Shares of listed general insurer Sena Insurance PLC have surged nearly 161% in just four and a half months, despite the company saying it has no undisclosed price-sensitive information (PSI) behind the unusual rise.

In response to a query from the Dhaka Stock Exchange (DSE) regarding the unusual increase in its share price and trading volume, the company yesterday said that it had no undisclosed price-sensitive information that could explain the recent movement.

According to DSE data, Sena Insurance shares closed at Tk60 on 24 March. The price rose to Tk156.50 at the close of trading yesterday, representing a gain of Tk96.50, or around 161%, over the period.

Meanwhile, the company's revenue increased in the first half of 2026, although its net profit declined slightly year-on-year.

Sena Insurance posted revenue of Tk18.82 crore during January-June 2026, compared with Tk17.32 crore in the same period a year earlier. This represents an increase of Tk1.50 crore, or around 8.7%.

However, the insurer's net profit fell to Tk19.81 crore in the first six months of 2026 from Tk20.27 crore a year earlier. This means profit declined by Tk46 lakh, or around 2.3%, year-on-year.

The company reported earnings per share (EPS) of Tk3.39 for the January-June period. Its net asset value (NAV) per share stood at Tk30.43 as of 30 June 2026.

For the year ended 31 December 2025, the company's board recommended a 15% cash dividend. Sena Insurance reported EPS of Tk5.17 for 2025, up from Tk4.29 in 2024.

The insurer is majority-owned by Sena Kalyan Sangstha, which holds 60% of its shares. As of June 2026, foreign investors held 9.71% of the company's shares, while general investors held 30.29%.

According to company information, Sena Insurance started operations in late 2013 and was listed on the stock exchanges in 2021. Besides conventional general insurance, the company has plans to expand insurance services in areas including agriculture and livestock.

Despite the company's clarification that it has no undisclosed PSI, its share price has risen sharply compared with its underlying asset value.

At Tk156.50, Sena Insurance's closing price yesterday was more than five times its net asset value (NAV) per share of Tk30.43 as of June. The wide gap between the market price and book value has drawn attention to the stock's valuation, even as the company denies having any undisclosed price-sensitive information behind the recent surge.