BB rejects City request to set up subsidiary in HK - Share market analysis of dhaka stock exchange, Bangladesh

Send This Page To Friends and Colleagues

You can Enter more than one email separated by (,)
Allowed 100 characters only
04 October, 2017 10:05 AM Source: The Daily Star Bangladesh

Bangladesh Bank has declined to give City Bank the permission to set up a subsidiary company in Hong Kong given the declining imports from the Asian nation.

The private bank in its application in October last year said it would provide trade financing amongst other services to its clients.

It also requested the central bank to allow it to transfer HKD 6.16 million (equivalent to Tk 6.46 crore) to Hong Kong for setting up the company, to be named City Overseas Finance.

Upon receiving City's application, the central bank made an assessment to see whether the proposed venture would be viable or not.

The BB report found that Bangladesh's import from Hong Kong has been on the descent for the last one decade.

Bangladesh imported goods worth $805.10 million from Hong Kong in fiscal 2015-16, down from $852.20 million a year earlier, according to data from the BB.

Rather, local importers took their commissions to China, India, Malaysia, Singapore, Japan, South Korea and Indonesia.

Hong Kong secured the 10th position among the top importing countries for Bangladesh, down from the fourth in the 1990s.

For instance, electronics was one of the major items imported from Hong Kong over the years and its shipment into Bangladesh from the island nation declined last fiscal year.

The central bank earlier allowed AB Bank, Eastern Bank and Prime Bank to set up finance companies in Hong Kong considering the volume of international business between the two countries.

Prime Bank set up its subsidiary company in Hong Kong in 2006, Eastern Bank in 2013 and AB Bank in 1995.

Under the circumstances, there is no need to allow any local bank to expand its overseas banking operations in Hong Kong, according to the BB report.

“The Hong Kong market is deep and wide enough to accommodate a forth Bangladeshi bank to open an office there,” said Mashrur Arefin, additional managing director and chief communications officer of City Bank.

The bank will soon approach the BB governor to reconsider its application, he added. 

Add Comment | 0   comment

Readers Comment

Nothing found to display
page number 1

Add Comment

Please login first to comment Click here to login
Advanced Charts
Market Map
Real-Time Market Watch
Order Book Data
Stock Screener
LankaBangla Client Login
CSE iTrading
Trading Game
DSE iTrading

Stocks in Focus

Features for Registered Users

E-mail Alerts
Daily Newsletter
Your Watchlist
Advanced Tools
Many more

Will automatically display the last quotes you have visited here.

All Rights Reserved - DUInvest © 2013


Do You have an Account ? , Click here to create a new account

Your Opinion Matters

What do you think about the new Website?