Bangladeshi apparel exporters are likely to absorb much of the future EU tariffs by cutting their own prices once duty-free access ends, according to a new study that warns of pressure on profits and long-term competitiveness.

If the EU imposes a 10 percent tariff on Bangladeshi garments after the end of trade preferences, exporters will need to cut their pre-tariff export prices by about 4 percent to remain competitive, according to the study on tariff and exchange rate pass-through in apparel exports to the EU. Tariff pass-through refers to the extent to which exporters transfer new tariffs to buyers in their selling price.

This means that nearly 40 percent of the tariff cost would be absorbed by exporters themselves, rather than being fully passed on to European buyers or consumers.

The study, presented at an event in Dhaka organised by the Research and Policy Integration for Development (RAPID) in collaboration with the International Growth Centre (IGC), examines how exporters are likely to respond to higher tariffs and exchange rate movements after Bangladesh graduates from least developed country (LDC) status in 2026.

Duty-free and quota-free access to the EU under the Everything But Arms (EBA) scheme is set to end in 2029, following a transition period.

Once preferences expire, apparel exports, more than 90 percent of which consist of low-value garments, could face Most Favoured Nation (MFN) tariffs of about 12 percent.

Using a counterfactual pricing model based on comparator exporting countries, the researchers find that tariff pass-through is likely to be incomplete in such a scenario.

Instead of transferring higher tariffs to buyers, exporters are expected to lower their own prices to protect market share in the EU, a strategy that may help sustain export volumes in the short term but would significantly compress profit margins.

The study cautions that prolonged price absorption could weaken firms' capacity to invest, upgrade technology and move into higher-value segments.

The research also suggests that exchange rate depreciation will provide only partial relief after preference erosion.

"About half of changes in the exchange rate are passed through to export prices, suggesting that currency depreciation alone cannot neutralise the impact of higher tariffs," said Md Deen Islam, research director of the RAPID, while presenting the keynote paper.

This is particularly relevant as Bangladesh has moved toward a more market-based exchange rate regime since mid-2024, increasing volatility for exporters.

Despite recent nominal depreciation of the taka, Bangladesh experienced a prolonged period of real exchange rate appreciation between 2012 and 2022, making its exports progressively more expensive relative to competitors such as China, Vietnam and Cambodia, said Islam.

Combined with rising tariffs, this trend has further squeezed exporters who already compete primarily on price.

The study identifies significant variation across product categories, with woven garments emerging as more vulnerable than knitwear.

At the event, Munir Chowdhury, national trade expert of the Bangladesh Regional Connectivity Project-1 under the commerce ministry, said non-tariff barriers can often be more restrictive than tariffs, underscoring the need for early preparation.

He warned that growing requirements related to human rights, labour standards and environmental, social and governance (ESG) compliance could increasingly shape the future sustainability of Bangladesh's export markets.

Echoing the same, Badrun Nessa Ahmed, senior research fellow at BIDS, said Bangladesh's competitiveness in the EU market depends not just on price but also on compliance, standards, logistics, and branding.

She noted that Bangladesh has 4-5 years before full preference erosion, giving time for policy and firm-level adjustments. Some larger firms are already investing in innovation, automation, and market diversification.

Ahmed stressed that the apparel sector must shift from low-priced products to higher-value segments, as preferential access cannot last indefinitely, and LDC graduation is inevitable.

Foreign loan commitments from development partners rose sharply by 133% to $1.219 billion in the first five months of the current 2025-26 fiscal year, while disbursements rose by 26.3% to $1.96 billion, according to the latest data from the Economic Relations Division (ERD).

Between July and November of the last fiscal year, commitments stood at only $522.68 million and disbursements at $1.543 billion.

The ERD report, released today (29 December), also shows that Bangladesh's foreign loan repayments during the period were almost equal to the amount disbursed. Bangladesh repaid $1.89 billion, covering both principal and interest on various foreign loans.

Data indicate that while aid inflows are rising, the near balance between disbursement and repayment continues to limit net foreign financing gains.

According to ERD officials, foreign loan commitments had remained low last fiscal year due to political upheaval, administrative instability and a crisis of confidence among development partners. With the situation improving, commitments are now picking up.

Govt to set six conditions to prevent delays, waste in foreign-funded projects

Foreign debt repayments have been rising steadily as the grace periods for loans taken by the government in previous years for various development projects and budget support have come to an end, they said.

Economists said that the foreign debt situation in the coming months will largely depend on the political environment. With an election ahead, uncertainties remain over whether it will be held in a free and credible manner and whether all political parties will accept the outcome. This uncertainty is already influencing business and investment decisions.

The international community wants an inclusive and acceptable election in which all parties participate and accept the results. This remains a major challenge for Bangladesh.

Masrur Reaz, chairman and CEO of Policy Exchange Bangladesh, said the first five months of last fiscal year coincided with a phase of political transition, when a change in government and policy uncertainty led development partners to scale back new commitments and project approvals. This year, that situation has improved to some extent.

Following the political change, the interim government has taken a comparatively stronger position on fiscal management, foreign borrowing and development spending. In other words, greater clarity has emerged in the fiscal policy and foreign aid management, he said.

Masrur added that many development partners are still waiting for the election outcome closely, as they are likely to decide on approving new projects and increasing commitments through discussions with the new policy-making team once a stable, elected government takes office.

ERD officials said Bangladesh has taken several large loans in the past. As the grace periods for many of these projects have ended, principal repayments have begun, causing foreign debt repayments to rise steadily – a trend that is expected to continue in the future.

Bangladesh repaid $1.215 billion in principal and $674.62 million in interest on foreign loans in the first five months of FY26, up from $1.055 billion and $655.10 million respectively a year earlier, according to ERD data.

Between July and November, the highest aid commitment of $581.71 million came from the Asian Development Bank (ADB), while the World Bank pledged $18.44 million.

During the same period, Russia disbursed the largest amount, providing $552.86 million, mainly for the Rooppur Nuclear Power Project. The World Bank disbursed $428.93 million, followed by ADB ($335.36 million), China ($194 million), Japan ($88.81 million), and India ($86.77 million).

After a brief period of profit-taking, the Dhaka Stock Exchange (DSE) experienced a rebound today (24 December), spearheaded by significant gains across blue-chip and banking shares.

The benchmark index, DSEX, of the bourse, surged by 23 points, while turnover declined by 17% to Tk338.10 crore, according to DSE data.

Out of the 10 stocks, seven banks – including BRAC Bank, City Bank, Pubali Bank, Eastern Bank, and Uttara Bank – were index pullers, as their share prices surged.
However, the majority – 178 out of 387 stocks traded on the bourse – posted price gains, while 126 declined and 83 remained unchanged.
Stocks opened on a positive note today (24 December), with prices of the majority of stocks rising and indices advancing.

However, after the first 19 minutes of trading, sell-offs emerged, dragging the indices down for about 10 minutes.

From around 10:30am, buying interest regained dominance, pushing stocks higher, with the upward momentum continuing until 1pm.

After that, selling pressure returned, but the market eventually closed in positive territory with DSEX gaining by 23 points to settle at 4,883 points.

Meanwhile, the other two indices – Shariah-based DSES and blue-chip DS30 – rose by 6 points and 9 points, respectively, to close at 1,006 and 1,882 points.

Market capitalisation, the total value of a publicly traded company's outstanding common shares owned by stockholders, Tk1,248 crore to Tk6.77 lakh crore.

According to the LankaBangla financial portal, Al-Arafah Islami Bank topped the index gainers, followed by BRAC Bank, City Bank, Beacon Pharmaceuticals, Pubali Bank, Uttara Bank, Grameenphone, Southeast Bank, and Eastern Bank.

On the dragger side, National Bank was the major index dragger, followed by Square Pharmaceuticals, GPH Ispat, ACI, Summit Power, AB Bank, Prime Bank, and Unilever Consumer Care.

Al-Arafah Islami Bank was the top gainer on the DSE with the increase of its shares by 8.57% to Tk15.2 each.

Rahima Food Corporation was the second top gainer with an increase in its share price by 6.50% to Tk160.5 as a revival plan was unveiled with the agreement with City Edible Oil to use the factory of Rohima Food to bottle oil.

Other top gainers are Makson Spinning Mills (6.38%), GSP Finance (6.25%), and Malek Spinning Mills (6.15%).

Fareast Finance was the top loser as its share price declined by 9.38% to Tk0.58 each, FAS Finance, People's Leasing by 8.33% to Tk0.66 each and Tk0.55, respectively.

Bangladesh Shipping Corporation, a state-owned firm, led the top trading stocks in terms of value with Tk18.74 crore, followed by City Bank with Tk13.10 crore, Rohima Food Corporation with Tk12.97 crore and Shaiham Cotton with Tk12.83 crore.

Foreign loan commitments to Bangladesh surged by 133 percent in the first five months of the current fiscal year, with most funding coming from the Asian Development Bank (ADB), European partners, and several other countries and organisations.

From July to November, total foreign loan and grant commitments reached $1.22 billion, up from $523 million during the same period last fiscal year. A commitment is recorded once a multilateral organisation or country approves a loan and signs an agreement with the government of Bangladesh.

Within the said period, the ADB provided $582 million, the World Bank $18.44 million, while Europe and other countries or organizations contributed $619 million.

Meanwhile, foreign aid disbursement increased by 26 percent during the same period. Total utilisation in the five-month period stood at $1.95 billion, compared to $1.54 billion in the same period last year.

The largest disbursement came from Russia, amounting to $552 million, primarily for the implementation of the Rooppur Nuclear Power Project. Authorities from Bangladesh and Russia are emphasising the commissioning of at least one unit next year.

Other significant disbursements included $428 million from the World Bank, ADB $315 million from ADB, $194 million from China, $89 million from Japan, $87 million from India, and $29 million from the Asian Infrastructure Investment Bank (AIIB).

Repayment of foreign loans, including principal and interest, rose by 10 percent, totaling $1.89 billion during the same period.

Growing Chinese auto giant BYD stands poised to officially surpass Tesla as the world's biggest electric vehicle company in annual sales.

The two groups are expected soon to publish their final figures for 2025, and based on sales data so far this year, there is almost no chance the American company led by Elon Musk will retain its leadership position.

At the end of November, Shenzhen-based BYD, which also produces hybrid vehicles, had sold 2.07 million EVs so far in 2025.

Tesla, for its part, had sold 1.22 million by the end of September.

Tesla's September figures included a one-time boost in sales, to nearly half-a-million vehicles in a three-month period, before the expiration of a US tax credit for buyers of electric vehicles -- which ended under legislation backed by President Donald Trump, a climate change skeptic.

But Tesla's sales in the coming quarter are expected to fall to 449,000, according to a FactSet analysis consensus. That would give Tesla about 1.65 million sales for all of 2025, a drop of 7.7 percent and well below the level BYD had attained by end November.

Deutsche Bank, which projects just 405,000 Tesla EV sales during the fourth quarter, sees the company's sales down by around one-third in both North America and Europe, and by one-tenth in China.

Industry watchers say it will take time for EV demand to reach a level of equilibrium in the United States following the elimination of the $7,500 US tax credit at the end of September 2025.

Even prior to that, Tesla had seen sales struggle in key markets over CEO Musk's political support of Trump and other far-right politicians. Tesla has also faced rising EV competition from BYD and other Chinese companies and from European giants.

"We believe Tesla will see some weakness on deliveries" in the fourth quarter, said Dan Ives of Wedbush Securities.

Sales of 420,000 would be "good enough to show stable demand," with Wall Street "laser focused on the autonomous chapter kicking off in 2026," Ives added, referring to plans for self-driving vehicles.

Even as it has grown quickly, BYD has faced challenges in its home market.

With profitability in China weighed down by price-wary consumers, the company has sought to strengthen its foothold in foreign markets.

BYD is "one of the pioneers to establish overseas production capacity and supply chains for EVs," Jing Yang, Director of Asia-Pacific Corporate Ratings at Fitch Ratings, told AFP.

"Going forward, its geographical diversification is likely to help it to navigate an increasingly complicated global tariff environment," said Yang.

Overseas rivals to BYD have balked at Chinese state subsidies and other state supports that have allowed the company to sell vehicles cheaply.

Trump's predecessor Joe Biden imposed 100 percent tariffs on Chinese EV imports that could potentially go even higher under Trump. Europe has also imposed tariffs on Chinese imports, but BYD is building manufacturing capacity in Hungary.

While the chance of Tesla reclaiming its global leadership in EVs looks uncertain, the American company is also potentially positioned for growth.

Michaeli of TD Cowen sees autonomous technology playing an increasingly important role for Tesla, with breakthroughs in its "full self-driving" or "FSD" offerings potentially boosting sales.

"As Tesla really begins to roll out eyes-off features and expand FSDs capability, if they do that successfully, that should generate more demand for their vehicles," Michaeli said.

Musk has said the Cybercab, an autonomous robotaxi model, will begin production in April 2026. The company has also unveiled lower-priced versions of the Models 3 and Y that could boost sales.

When a large Vietnamese investor visited Dhaka in 2018 to explore opportunities in Bangladesh's footwear and leather processing sector, he asked a simple question: How many licences and approvals are needed to run a factory?

"Around 30 to 35," replied Nasir Khan, managing director of Jennys Shoes, an export-oriented factory.

What followed ended the conversation. The visitor was told that securing all approvals could take up to two years and that some licences might expire before renewal is processed. The investment idea was dropped on the spot.

The Vietnamese entrepreneur exports around $1 billion worth of leather and footwear annually from Vietnam. Meanwhile, Bangladesh, despite having abundant rawhide and a long history in leather processing, has remained stuck at around $1 billion in footwear exports for nearly 25 years.

The story is not an outlier. It captures the persistent regulatory drag that has long defined the cost of doing business in Bangladesh and continues to do so even after the political change in August last year.

Businesses say that while Bangladeshi entrepreneurs remain burdened by numerous licences and documentation requirements, Vietnam has streamlined its business procedures to be more investor-friendly, with factories needing just five licences that require no renewal. The contrast is reflected in export performance: Vietnam earned about $400 billion from exports in 2024, nearly equal to its GDP, whereas Bangladesh's exports accounted for less than 12% of its GDP in FY2024–25.

Little change on the ground

When the interim government took office after the ouster of Sheikh Hasina in August last year, it promised to improve the business climate, ease regulatory bottlenecks and restore investor confidence.

As part of that move, Chowdhury Ashik Mahmud Bin Harun has been made the executive chairman of the Bangladesh Investment Development Authority (Bida) and the Bangladesh Economic Zones Authority (Beza), two key investment promotion agencies under the Chief Adviser's Office. Ashik also leads the Public-Private Partnership Authority (PPPA) and the Moheshkhali Integrated Development Authority (Mida).

Businesses say that the promise has not translated into meaningful change.

"We expected that the interim government would take initiatives to ease business processes. But that did not happen," said Nasir Khan.

"We need so many licences and renew many every year, while Vietnam needs only five licences and there is no renewal issue," he added.

Licences everywhere, renewals every year

On the ground, the licensing burden is even heavier.

Operating a textile mill requires at least 20 licences, a spinning mill 22, an LPG plant 26, and a pharmaceutical factory at least 24. Moreover, some of these licences must be renewed every six months, while others require annual renewal.

"Forget reducing the number of licences for spinning mills, ours has actually increased by two," said Mohd Khorshed Alam, director of the Bangladesh Textile Mills Association (BTMA) and president of the Bangladesh China Chamber of Commerce and Industry.

The two new licences – a generator licence and a generator inspection licence – must both be renewed every six months, he said.

Now, another may be added.

"The Department of Inspection for Factories and Establishments (Dife) is considering a new licence for workers' toilets," Khorshed Alam said. "They want to verify how millers manage toilet facilities."

Paperwork that never ends

The licensing maze comes with an avalanche of documentation.

A footwear manufacturer must submit around 190 documents to obtain or renew all required licences."We don't see any headway in easing the process of doing business," said Nasir Khan.

"Bida held a meeting after learning how many licences a footwear factory needs, but nothing has improved," he added.

Large firms struggle, SMEs suffer more

For large firms, the cost is high. For small and medium enterprises, it can be crippling.

Rubina Akter Munni, owner of Design by Rubina, said SMEs face mounting challenges despite rising demand in leather, jute, handicrafts and ceramics.

"The main challenges are VAT, compliance and licensing," she said.

After relocating her factory to Gazipur, she spent two months trying to obtain a trade licence.

"I had to run around for two months. Those who issue licences do not understand SMEs. One lawyer failed, and another somehow managed to get the licence after a lot of effort."

VAT issues compound the problem.

"It's the same business and the same VAT. But simply changing location creates new VAT complications. I have been paying taxes for years," she said.

"If these issues were simplified, we could perform much better."

Costs beyond the rulebook

Beyond formal requirements, businesses point to informal costs.

A textile mill owner in Ashulia said that when officials from regulatory agencies visit factories, owners are often expected to send cars, arrange food and pay Tk5,000-Tk10,000.

Economist Mustafizur Rahman, distinguished fellow at the Centre for Policy Dialogue (CPD), said the cost of doing business remains high, aggravated by corruption and harassment.

"That is why new investments have slowed down," he said.

He pointed to the Seventh Five-Year Plan (2016-2020), which targeted $31 billion in FDI, but achieved only $11 billion – barely one-third of the goal.

What the World Bank warned years ago

The concerns raised by businesses today echo warnings flagged by the World Bank in its last Doing Business report before the index was discontinued.

In Doing Business 2020, Bangladesh ranked 168th out of 190 economies. The World Bank noted that while some reforms had been undertaken, progress was too slow to significantly boost competitiveness.

Improving the business environment is essential for Bangladesh to support private sector development, which will create more jobs and foster sustainable economic growth, the report said, adding that the country would need to "accelerate the reform pace" to remain competitive.

The data pointed out the scale of the problem: obtaining factory construction permits required 16 procedures and 274 days, getting an electricity connection took nine procedures and 125 days, and registering property involved eight procedures and 271 days. Each "procedure" represented a separate interaction with an authority – effectively a licence, clearance, or approval.

Bida's response

A TBS reporter sought comments from Chowdhury Ashik Mahmud Bin Harun, executive chairman of Bida and Beza, regarding the challenges businesses face in obtaining and renewing licences. However, the response came from Nahian Rahman Rochi, executive member and spokesperson of BIDA, which acknowledges that licensing complexity is a long-standing concern.

According to Nahian Rahman Rochi, executive member and spokesperson of Bida, the authority has reviewed licensing requirements with global experts and identified priority areas for reform.

He said Bida has published a consolidated list of required licences on its website to address confusion and claims that the footwear sector actually needs 11-17 licences, not 23, with many documents being repetitive.

However, he said Bida also plans to move licensing online with real-time tracking, issue five-year trade licences instead of annual renewals and launch a digital "Starter Pack" for business licences by January 2026.

"While there is still progress to be made, we remain closely engaged with the private sector," Nahian said.

Bangladesh's apparel exporters may have to absorb up to 40% of European Union tariff costs after 2029, following the country's LDC graduation, by lowering product prices to stay competitive, a new study finds.

The study, conducted by the Research and Development Integration for Development (RAPID), also revealed that the average weighted price of Bangladesh's top ten apparel items is around 36% lower than those of China and Vietnam. Bangladeshi apparel prices are also lower than those of India and Cambodia.

The findings were presented yesterday (29 December) by Md Deen Islam, research director of RAPID, at a programme held at the University of Dhaka titled "Assessing Tariff and Exchange Rate Pass-through in Bangladesh's Apparel Export Prices in the EU: LDC Graduation Implications for Bangladesh."

The study did not specify which categories of apparel exporters would be most affected, nor did it indicate which products would require larger or smaller price reductions.

Speaking to The Business Standard after the programme, Deen Islam said, "If new tariffs are imposed in line with market demand, exporters will have to absorb up to 40% of the price impact to remain competitive; otherwise, they risk losing market share – despite already operating on very thin profit margins."

He added that the remaining 60% of tariff pressure would be passed on to product prices, meaning prices would ultimately have to rise.

Bangladesh will graduate from least developed country status in 2026. Duty-free export benefits to the EU market will continue until 2029. After that, under the EU's current policy framework, Bangladesh will have limited scope to avoid additional tariffs, which could reach around 12%.

If no free trade agreement (FTA) or other trade arrangement is concluded with the EU within this period, and existing policies remain unchanged, Bangladesh may face increased tariff burdens in the European market after 2029.

According to the study, Bangladesh's apparel prices are on average 36% lower than those of China and Vietnam for similar products, approximately 25% lower than India, and about 15% lower than Cambodia. Around half of Bangladesh's total exports are destined for the EU market.

The study also found that the woven apparel sector is more vulnerable due to its heavy reliance on imported raw materials, particularly fabrics.

Munir Chowdhury, National Trade Expert of the Bangladesh Regional Connectivity Project-1 under the Ministry of Commerce, said, "Non-tariff barriers can sometimes have an even greater impact than tariffs, and we need to be prepared for this."

He added that issues such as human rights, labour standards, Environmental, Social, and Governance (ESG) compliance, and other emerging requirements may increasingly affect the sustainability of Bangladesh's export market.

Munir Chowdhury also emphasised the importance of preparing for FTAs and stressed the need to develop skilled trade negotiation experts.

RAPID recommended strengthening diplomatic engagement, building domestic resilience through stronger backward linkages, providing direct support to firm-level viability, and executing a strategic shift up the value chain to retain competitiveness in the market after Bangladesh's LDC graduation.

Inflow of remittances witnessed a year-on-year growth of 14.3% reaching $2,752 million in the twenty seven days of December, according to the latest data of Bangladesh Bank (BB) issued yesterday.

Last year, during the same period, the country's remittance inflow was $2,408 million.

During the July to 27 Dec 2025 of the current fiscal year, expatriates sent remittances of $15,791 million, which was $13,545 million during the same period of the previous fiscal year.

Stakeholders and economists have advised the Bangladesh Bank to keep the policy rate unchanged at 10%, arguing that the current economic conditions warrant stability rather than further tightening or easing of monetary policy.

The view emerged at a monetary policy consultation meeting held yesterday at the Bangladesh Bank, attended by business leaders from various sectors, economists and senior central bank officials.

The policy rate, set by the central bank, serves as the benchmark interest rate that influences banks' lending and deposit rates.

Participants said that with inflation remaining above 9%, raising the policy rate could further increase borrowing costs, while lowering it could risk fuelling price pressures.

Several attendees noted that maintaining the rate at its current level would help contain inflation without adding stress to investment and credit flows.

One participant told The Business Standard that many at the meeting felt a rate hike was unnecessary at this stage, but reducing the policy rate would also be inappropriate given persistent inflationary pressures.

The meeting also discussed broader economic challenges, including rising non-performing loans (NPLs) in the banking sector and liquidity condit ions.

China will on January 1 launch an "action plan" for boosting management and operations of its digital currency, a deputy governor of the country's central bank said Monday.

"The future digital yuan will be a modern digital payment and circulation means issued and circulated within the financial system," People's Bank of China (PBoC) Deputy Governor Lu Lei wrote in Financial News, a media outlet under the central bank.

In the next step towards that goal, a "new generation" arrangement for digital yuan will be launched on January 1, Lu said, encompassing a "measurement framework, management system, operating mechanism and ecosystem".

The "action plan" will see banks pay interest on balances held by clients in digital yuan -- a move to incentivise broader adoption of the currency.

The plan also includes a proposal to establish an international digital yuan operations centre in the eastern financial hub of Shanghai, the report said.

Monetary authorities around the world have in recent years been exploring ways to digitalise currencies, propelled by a boom in online payments during the pandemic and the increased popularity of cryptocurrencies such as bitcoin.

The PBoC has been working on a digital currency since 2014 and has been testing the use of a "digital yuan" or "e-CNY" in various pilot programmes.

Consumers across the country already widely use mobile and online payments, but the digital yuan could allow the central bank -- rather than the big tech giants -- access to more data and control over payments.

The upward trend in remittances sent by expatriate Bangladeshis has continued in December, with receiving over US $ 2.93 billion in 28 days of the month.

Bangladesh received $15.97 billion inward remittance so far in the current fiscal year FY 2025-26.

According to the latest update from Bangladesh Bank, the $ 2.93 billion remittance in 28 days of December, is an increase by 21.3 percent compared to the same period last year. In December of the previous year (2024), the country received around $ 2.42 billion in 28 days of December.

The growth is attributed to several factors, including incentives offered for sending money through legal banking channels, increased encouragement for using the formal system, and the active role of exchange houses.

Remittance inflow has shown robust growth throughout the current fiscal year (FY 2025-26). From July 1 to December 28, 2025, the total remittance inflow reached $15.97 billion. This represents an increase of $2.42 billion compared to the same period in the previous fiscal year (FY 2024-25), when the total stood at $ 13.55 billion. The year-on-year growth rate for the fiscal year to date is 17.8 percent.

Following a significant jump in inward remittances this year, Bangladesh Bank has been actively purchasing dollars from commercial banks to maintain market stability and balance the supply-demand of foreign exchange.

Bangladesh Bank Executive Director and Spokesperson Arif Hossain Khan said that the central bank purchased $ 3.05 billion in the current fiscal year. As a result, the gross forex reserves crossed $32 billion so far.

As commercial banks face a surplus of dollars due to the remittance boom, the central bank has stepped in to prevent drastic fluctuations in the exchange rate.

NCC Bank has signed a Memorandum of Understanding (MOU) with six leading Companies of Akij Resource- Akij Essentials Limited, Hashem Rice Mills Limited, Akij Agro Feed Limited, Akij Ispat Limited, Nobayon Traders Limited, and Akij Cement Company Limited—to introduce a comprehensive Supply Chain Finance (SCF) arrangement for their designated suppliers. Under this strategic collaboration, NCC Bank will extend supply chain financing facilities to eligible and reputed suppliers. The initiative is designed to meet suppliers’ working capital needs by enabling timely access to finance against buyer-approved invoices.

A signing ceremony was held at NCC Bank's Head office, Motijheel, Dhaka on this occasion. Md. Habibur Rahman, Deputy Managing Director of NCC Bank and Md. Ruhul Islam, Director of Akij Agro Feed Ltd. signed and exchanged the agreement on behalf of their respective organizations. M. Khurshed Alam, Additional Managing Director, Md. Zakir Anam and Mohammed Mizanur Rahman, Deputy Managing Directors, Sharif Mohammad Mahsin, SVP & Head of SME, Mufti Mustafizur Rahman, SVP & Head of Branch and Business from NCC Bank Bhaban Branch, and Sheikh Sadi, Chief Treasury Officer, Sohanur Rahaman Sohan, Deputy COO from Akij Resource Group along with other high officials from both concerns were present.

M. Khurshed Alam, Additional Managing Director stated that this partnership underscores NCC Bank’s commitment to supporting sustainable business growth, strengthening supplier ecosystems through innovative banking solutions. The collaboration with the companies of Akij Resource Group—recognized for their strong market presence and operational excellence—reflects the Bank’s focus on building long-term partnerships that add value across the supply chain.

The Ministry of Expatriates’ Welfare & Overseas Employment has awarded BRAC Bank the prestigious Remittance Award for the second consecutive year.

This recognition from the government of Bangladesh demonstrates BRAC Bank's strong commitment to bolstering the economy by simplifying remittance processes through digital solutions for wage earners worldwide.

Dr. Asif Nazrul, Adviser, Ministry of Expatriates’ Welfare & Overseas Employment and Ministry of Law and Justice, handed over the award to Shahrear Zamil, Head of Remittance and Probashi Banking, BRAC Bank, at a ceremony marking the International Migrants Day and National Expatriates Day 2025 in Dhaka on December 18, 2025.

A leader in facilitating inward remittances to Bangladesh, BRAC Bank achieved a milestone, with wage remittances totalling more than USD 2.1 billion in 2025. This milestone underscores its significant impact on the country's foreign exchange reserves and financial stability.

The Remittance Award acknowledges BRAC Bank’s facilitating role in driving economic growth, alleviating poverty, and fostering social development in Bangladesh through channelling international remittances in the banking channel.

As a leading bank in overseas remittances, BRAC Bank aims to elevate the country's image on the global stage, encouraging the Bangladeshi diaspora to increase their investment in the homeland and utilise formal remittance channels.

BRAC Bank's remittance recognition reflects its significant contribution to the national exchequer and its role as a catalyst for Bangladesh's economic prosperity.

Norway's sovereign wealth fund, the world's largest investment fund, has modestly increased its equity exposure in Bangladesh after six years, even as it exited holdings in Beximco Pharmaceuticals and Singer Bangladesh, citing company-specific risks and limited scope for diversification in the local market.

According to data from Norges Bank Investment Management, which oversees the fund – formally known as the Government Pension Fund Global, its total investment in Bangladesh stood at $146.62 million at the end of June 2025, up from $141.93 million in 2024.
This represents an increase of about 3.3% year-on-year, marking the first notable rise in exposure after a prolonged period of decline.
The fund's investment in Bangladesh had peaked at $248.35 million in 2020 before falling steadily over the following years amid market volatility, regulatory constraints, volatile forex market and economic uncertainty.

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The latest figures indicate that while the fund increased its overall exposure, it reshuffled its portfolio by raising stakes in some companies and fully exiting others.

As of June 2025, the fund held a 5% stake in BRAC Bank, unchanged from a year earlier, while its ownership in Square Pharmaceuticals rose to 2.38% from 2.24%. Stakes in City Bank and Prime Bank also increased marginally, with Prime Bank seeing a more notable rise to 4.88% from 3.73% a year earlier.

The fund also raised its holdings in MJL Bangladesh and added a new position in Marico Bangladesh, while maintaining stable exposure to Grameenphone, Bangladesh Submarine Cable, Olympic Industries and Walton.

At the same time, the Norwegian fund completely exited Beximco Pharmaceuticals, where it previously held a 0.47% stake, and Singer Bangladesh, where its ownership stood at 1.15% in 2024.

A managing director of a brokerage firm handling foreign portfolio accounts said the exit from Beximco Pharma was largely driven by prolonged legal and regulatory uncertainty surrounding the company's board restructuring, following the arrest of its vice-chairman, Salman F Rahman.

The unresolved situation, he said, raised governance concerns that made the stock less attractive for a long-term institutional investor like the Norwegian fund.

The withdrawal from Singer Bangladesh was attributed to a different set of challenges.

The brokerage executive said the company has been burdened by high debt following an aggressive expansion drive, while business growth has lagged amid intense competition from local players. These pressures weakened the company's financial outlook and reduced its appeal for foreign investors focused on sustainability and long-term value creation.

In contrast, the fund increased exposure to companies that demonstrate relatively stable earnings, stronger governance and sustainable or innovative business models.

"The fund prefers companies that can grow steadily and withstand macroeconomic shocks," the executive said, noting that the higher investment signals selective confidence in Bangladeshi stocks despite political and economic uncertainty.

Market participants see the overall rise in the fund's Bangladesh exposure as a positive signal for the local capital market, particularly at a time when foreign portfolio investment remains subdued.

However, they caution that the scope for further diversification is limited due to the relatively small number of high-quality, large-cap stocks that meet the investment criteria of global institutional funds.

Another managing director of a brokerage firm noted that while the fund had increased its investment by June, it trimmed some holdings later in the year, particularly in BRAC Bank, Square Pharmaceuticals and a few other stocks.

He said such adjustments are common as the fund prepares its year-end financial statements and rebalances portfolios in line with global allocation strategies.

Analysts said the fund generally follows FTSE equity country benchmarks, though final decisions are based on internal assessments.
Bangladesh had previously been excluded from FTSE indices due to the imposition of floor prices on stock movements. Although the Bangladesh Securities and Exchange Commission has gradually lifted most of those restrictions since January last year, floor prices remain in place for shares of two companies, which continue to be excluded from the FTSE index.

Since entering the Bangladeshi market in 2015, the fund has maintained long-term positions in a handful of core stocks, including BRAC Bank, City Bank, Grameenphone and Square Pharmaceuticals.

According to analysts at Brummer & Partners, which manages the fund's local portfolio, the sovereign wealth fund has not repatriated any returns from Bangladesh since its initial investment. Instead, all earnings have been reinvested in the market.

They added that due to slower investment activity in recent years, a significant amount of idle capital had accumulated within the Bangladesh portfolio.

The recent increase in exposure reflects a gradual reinvestment of that capital, even as structural challenges in the market continue to limit the pace and scale of future inflows.

Bangladesh Bank has purchased another $115 million from commercial banks through auction to stabilise the foreign exchange market.

The central bank bought the dollars from three banks today (28 December) at a rate of Tk122.30 per dollar.

With the latest purchase, Bangladesh Bank's total dollar purchases in the current fiscal year have reached $3.46 billion. Of this amount, $920 million was bought in December alone.
Bangladesh Bank began buying dollars through auctions in July this year as part of its strategy to intervene in the foreign exchange market.

Under its market-based exchange rate framework, the central bank aims to maintain balance in the market – allowing the dollar price to fall when supply is high and demand is weak, while allowing prices to rise when demand increases.

Bankers said the recent decline in dollar demand is due to several factors. They said the easing of large government foreign payment obligations has reduced demand for foreign currency. Slower business activity and investment have also led to lower imports of capital machinery.

Despite adequate dollar availability, private sector credit growth fell to a record low of 6.23% at the end of October this year, indicating subdued import activity.

Meanwhile, remittance inflows have shown a positive trend.

The past year has marked a historic inflection point for Bangladesh's semiconductor ecosystem. What once appeared as fragmented ambition has evolved into a coordinated national movement, linking education, research, industry, diaspora expertise, youth energy, and policy intent.

Bangladesh is not yet a semiconductor nation, but it is unmistakably becoming a nation of innovation, grounded in realism and driven by purpose.

At the heart of this transformation lies the Silicon River vision — a unifying ecosystem framework that aligns initiatives, institutions and people under a shared national strategy. Silicon River is not a slogan; it is an organising principle that connects foundational education to advanced research, local industry to global markets, and national priorities to international best practices.

A major contributor to this progress has been the leadership of the Bangladesh Semiconductor Industry Association (BSIA), which has helped organise industry voices and align them with academic and national objectives.

In this context, special recognition is due to Neural Semiconductor, whose commitment and sponsorship made the establishment of CREST (Center of Research Excellence in Semiconductor Technology) possible.

CREST now stands as the intellectual and research nucleus of Silicon River — anchoring advanced research, cleanroom engagement, and industry-relevant innovation.

The ecosystem has matured through a coordinated stack of initiatives. CREST leads advanced research and experimentation. SARA, in partnership with Synopsys, provides access to global-standard VLSI design tools. BASICS strengthens foundational semiconductor literacy across universities, while BOOST integrates learning resources and training pathways nationwide.

Looking ahead, BRIDGE articulates a long-term commitment to strengthen 40 STEM-focused universities through sustained investment, faculty development, and global collaboration.

Several milestones reinforced this momentum. The STAR facility hosted at BUET emerged as a national anchor for semiconductor research and training, awaiting timely government acceleration. A three-year VLSI training and global certification program with Synopsys, designed to certify 5,000 engineers, demonstrated unprecedented academia–industry alignment, even as administrative indecision temporarily slowed execution.

The Malaysia Roadshow validated Bangladesh's growing regional and global credibility, while the National Semiconductor Policy, now in draft form, provides a strategic umbrella that must be matched with execution discipline, procurement reform, and regulatory clarity. More roadshows are planned in 2026.

Institutional integration is also advancing. Work is underway with the Ministry of Science and Technology (MoST) to include semiconductor research and training within national fellowship programs. The BCSIR thin-film laboratory is being aligned with CREST, and the BAEC cleanroom is under revival to support scaled-up training, hands-on education, and applied research.

Equally defining has been the human dimension. The BEAR (Biotechnology, Electronics, AI and Robotics) Summit brought together foreign dignitaries, global experts, policymakers, industry leaders, and an energised youth population. This momentum reflects the spirit of the July Uprising of 2024, when Bangladesh's youth demanded accountability and are now channeling that energy into semiconductors, robotics, AI applications, and entrepreneurship.

The role of NRBs has been transformative. Through BRAINGAIN, diaspora scientists and engineers moved from symbolic engagement to active contribution — shaping curricula, mentoring talent, opening global networks, and enabling real semiconductor work to flow into Bangladesh.

Challenges remain — flawed procurement processes, opaque tax policies, institutional inertia, and the temptation of visibility without competence. But the direction is clear. The age of mediocrity is over — here and abroad. Semiconductors reward discipline, collaboration, and leadership. If this collective resolve holds, Silicon River — anchored by BEAR, guided by policy, and powered by youth and NRBs — can help transform Bangladesh into a true nation of innovation.

Muhammad Mustafa Hussain is a professor of ECE at Purdue University, US.

MA Jabbar is the president of the Bangladesh Semiconductor Industry Association (BSIA) and managing director of Neural Semiconductor Ltd, Bangladesh.

The process of transferring depositors' accounts from the five banks undergoing a merger to the newly formed Sommilito Islami Bank is nearing completion and is expected to be finalised within the next week, according to Bangladesh Bank (BB).

Once completed, deposits of customers of the five banks will be automatically transferred to accounts at the new bank, BB spokesperson Md Areif Hossain Khan said in a statement yesterday.

Following the transfer, depositors will be able to withdraw up to Tk 2 lakh using their existing cheque books.

Any remaining balance will remain secured in their accounts, and depositors will continue to receive profit on their deposits at the prevailing rates, he said.

The five banks are First Security Islami Bank, Social Islami Bank, Union Bank, Global Islami Bank, and EXIM Bank.

The central bank spokesperson expressed hope that public confidence in the newly formed bank would be strengthened, as it will operate as a state-owned institution.

"People's trust is expected to increase, which should significantly reduce pressure from deposit withdrawals," he added.

The merger of the five troubled shariah-based lenders into a single entity is part of the government's broader effort to stabilise the banking sector and restore confidence amid mounting concerns over asset quality and liquidity, according to the statement.

Last week, the BB instructed the five shariah-based banks undergoing a merger to declare their shareholders' equity at zero after assessments showed the net asset value of their shares to be negative.

"An assessment found that the net asset value per share of these banks is negative," Khan said. "As a result, the shareholders' equity has been written down to zero."

On November 30, Bangladesh Bank granted the final licence to Sommilito Islami Bank PLC, formed through the merger of the five lenders. It is now the largest state-owned shariah-based bank in the country.

The central bank said the approval was part of a broader banking sector reform programme launched in September 2024 to restore governance, ensure accountability and bring discipline to the financial system.

The office space for the new bank has been fixed at Sena Kalyan Bhaban in Motijheel. Besides, a seven-member board has been formed for the bank, and former senior secretary Mohammad Ayub Mia has been appointed as its chairman.

However, the official operations of the bank have yet to begin, as the lender is still without a management team.

Earlier this month, the government called for applications by December 22 for the appointment of managing director and CEO of Sommilito Islami Bank.

In a notification, the finance ministry said applicants should hold a postgraduate or master's degree, preferably in economics, finance, accounting, banking, management or business administration from a recognised university.

The authorised capital of Sommilito Islami Bank stands at Tk 40,000 crore, with each share valued at Tk 10, amounting to 4,000 crore shares. The paid-up capital will be Tk 35,000 crore.

Of this, Tk 20,000 crore has already been provided by the government, which will hold Class A shares, according to the finance ministry.

Another Tk 7,500 crore will come from permanent deposits of depositors of the transferring banks and financial institutions, converted into equity and designated as Class B shares.

The remaining Tk 7,500 crore will be sourced from deposits of other institutional depositors, excluding banks, financial institutions and multinational companies. These will be converted into equity and classified as Class C shares.

China's rocket startup LandSpace has made no secret about drawing inspiration from Elon Musk's SpaceX.

Earlier this month, the Beijing-based firm became the first Chinese entity to conduct a reusable rocket test. That put SpaceX on alert and LandSpace is now preparing to go public to fund its future projects, just as its bigger and far more successful US rival considers an initial public offering of its own.

Even though LandSpace's Zhuque-3 rocket test ended in failure, its aspiration to become second only to SpaceX in reusable rockets is providing a fresh impetus to China's space industry, which has long been dominated by risk-averse, state-owned entities.

"[SpaceX] can push products to the edge and even into failure, quickly identifying limits and iterating," Zhuque-3 chief designer Dai Zheng told state broadcaster CCTV after the rocket's inaugural flight.

Dai said his decision in 2016 to join LandSpace and leave the China Academy of Launch Vehicle Technology, the country's main state-owned rocket developer, was partly motivated by SpaceX's focus on reusability and his desire to create a Chinese equivalent.

LandSpace's focus on giving China its own low-cost launch option similar to SpaceX's flight-proven reusable rocket Falcon 9 will play a key role in Beijing's plans to build up 10,000 satellite constellations in the coming decades.

"Falcon 9 is a successful configuration that has been tested by engineering," Zhuque-3's deputy chief designer Dong Kai said in a podcast interview last week. "After studying it, we recognize its rationality; this is learning, not imitation."

"Calling (Zhuque-3) a 'Chinese Falcon 9,' I think, is a very high compliment."

Its startup culture and mimicking of SpaceX has already initiated a paradigm shift in China's space industry.

China's state-led space programme has historically been allergic to failed launches, in contrast to SpaceX and other Western firms that regularly broadcast their mishaps.

But earlier this month, state media covered China's first two failed attempts at recovering a reusable rocket, with the second launch coming from a state-owned firm, just three weeks after Zhuque-3's maiden flight.

LandSpace also opened its engine factory floor to Reuters this month, allowing foreign media to take a peek at one of its core assets for the first time.

After opening up the space sector to private money in 2014, which spawned several startups including LandSpace, Beijing is now looking to help leading domestic players tap into capital markets by making it easier for them to pursue IPOs.

Dai said SpaceX's generous financial backing was a key factor in allowing the US firm to incur huge losses while testing Starship, its reusable launch vehicle.

"For us, we're not yet able to do that," Dai told CCTV.

"I believe our country has recognized this, allowing capital markets to support companies (in areas) like commercial space flight."

'In another league'

A month before LandSpace launched the Zhuque-3, SpaceX founder Musk had already taken note of the vehicle's design.

Commenting on a video on X that showed Zhuque-3's assembly, he said the Chinese-made rocket had adopted aspects of the Starship spacecraft and applied them on a design similar to the Falcon 9.

"They have added aspects of Starship, such as use of stainless steel and methalox, to a Falcon 9 architecture, which would enable it to beat Falcon 9," Musk said in October, in his first public comments about LandSpace.

"But Starship in another league."

Features like stainless steel sheaths and rocket engines powered by methalox, a combination of methane and liquid oxygen, are just some of the ways that companies like SpaceX and LandSpace are looking to reduce the enormous cost of launches.

But by far the most important cost-saver is the ability to launch a rocket, then return, recover and reuse its engine-packed first stage.

As LandSpace prepares another rocket launch after the December failure, when Zhuque-3's booster was not able to activate a landing burn 3 km from the ground as planned, causing it to crash rather than execute a controlled landing, it may take comfort from SpaceX's experience.

SpaceX had its first successful Falcon booster landing in 2015 after two failed attempts.

The country’s economy has plunged into a deep crisis amid soaring inflation, stagnant wages, a growing employment crunch and a severe meltdown in the banking sector. Although official statistics indicate some improvement, in reality millions of low- and middle-income families are struggling daily to survive. Prices of essential goods have risen so sharply compared to income that managing household expenses has become increasingly difficult.

The cost of rice, edible oil, vegetables, transport, house rent, education and healthcare is consuming a large share of family income. In particular, wage-based workers and small traders have been pushed into deeper uncertainty as their earnings have failed to keep pace with inflation.

According to official data, average inflation declined to 8.29 per cent in November 2025 from 11.38 per cent in November 2024. During the same period, however, wage growth fell to 8.04 per cent. As a result, despite a statistical drop in inflation, the real purchasing power of ordinary people has not improved; in many cases, it has declined further.

To rescue the economy from the fragile state left behind by the previous Awami League government, the interim administration has taken a series of tough measures. Reform initiatives were launched to restore discipline in the banking sector and boost foreign currency reserves, leading to some relief on the external front. As of 28 December 2025, foreign exchange reserves stood at $27.88 billion, up from $19.95 billion during the same period in 2024. Exports, imports and remittance inflows have also increased. However, due to weak growth, sluggish investment and persistently high inflation, the economy has yet to recover fully.

The employment scenario is becoming increasingly alarming. Job creation in the formal sector remains slow, while informal and short-term employment is on the rise. As many firms avoid permanent recruitment, underemployment has increased.

More than 20 per cent of young people aged 15–29 are currently outside education, employment or training. Securing stable and decent jobs for new entrants to the labour market is becoming harder, raising the risk of social instability.

Another major weakness lies in investment. In October 2025, private sector credit growth fell to a record low of 6.23 per cent. Faced with high business costs, dollar shortages and policy uncertainty, investors are prioritising survival rather than new ventures. Foreign direct investment remains below 1 per cent of GDP, posing a significant obstacle to economic diversification and the creation of quality jobs.

Former Dhaka Chamber President Shams Mahmud said he was unaware of anyone currently planning business expansion or new projects. “The government is not even engaging in discussions with stakeholders about business expansion or job creation. Bank loans have become extremely difficult to obtain. With such high interest rates and VAT and taxes, starting new businesses is very challenging,” he said, adding that reduced business activity would naturally lead to a decline in capital machinery imports.

The biggest risk now facing the economy is the banking sector. According to Bangladesh Bank data, non-performing loans reached Tk6.44 lakh crore by September this year, accounting for 35.73 per cent of total loans. Before the change of government, defaulted loans stood at Tk2.11 lakh crore (12.5 per cent) in June. Despite long-term rescheduling facilities granted to a handful of business groups, default loans have continued to rise. Banks are allegedly reluctant to implement these policies and are shifting responsibility, deepening risks to deposits and eroding public confidence.

Bank account scrutiny has led many businesses to suspend investment. Reluctance to launch or expand enterprises has created complications in opening letters of credit, importing raw materials and paying wages. In the long run, economic growth has suffered, the budget deficit has widened, financial stability is under threat, government revenue losses have increased and private sector credit flows have declined.

In addition, dollar shortages, currency depreciation, a weak tax system, heavy debt burdens, lack of export diversification, corruption and governance deficits—along with the impact of global wars and geopolitical tensions—have placed further pressure on the economy. Despite modest improvements in some indicators, relief has not returned to people’s lives. Inflation, wage stagnation, job shortages and the fragile banking sector mean the economy remains in deep distress. Sustainable recovery now urgently requires strong structural reforms, improved governance and the restoration of confidence in investment and employment.

CPD Distinguished Fellow Professor Dr Mustafizur Rahman said investment remains stalled as the overall situation is still unsatisfactory. Private sector investment has remained unchanged at around 22–23 per cent of GDP for a long time.

Although the current government is aware of these challenges, no significant visible initiatives have emerged so far. If the situation persists, investment stagnation will worsen further. Without investment, production and employment will not grow, making it difficult for the government to achieve its targeted economic growth.

Source: Bangladesh Pratidin

The brokerage houses operated by five Shariah-based Islamic banks undergoing merger will not be required to shut down after the commencement of operations of Sammilito Islamic Bank.
The decision has been taken by the Bangladesh Securities and Exchange Commission (BSEC) as a matter of policy to remove uncertainty over the future of subsidiary brokerage institutions following the bank merger.
BSEC sources said that a commission meeting decided that the stock-broker, stock-dealer and merchant banker registration certificates issued in the names of subsidiary companies of the five merged banks must be renewed on a regular basis.
The banks undergoing the merger are First Security Islami Bank PLC, Global Islami Bank PLC, Union Bank PLC, EXIM Bank PLC and Social Islami Bank PLC. Several subsidiary institutions of these banks are already operating after obtaining registration certificates as stock-brokers, stock-dealers and merchant bankers from the commission’s registration department.
Recently, renewal applications for the stock-broker and stock-dealer registrations of SIBL Securities Limited (DSE TREC No. 94, CSE TREC No. 142) were submitted to the commission through Dhaka Stock Exchange PLC (DSE) and Chittagong Stock Exchange PLC (CSE).
In this context, the registration department referred the matter to the relevant BSEC committee for discussion and recommendations regarding the processing of renewal applications of stock-broker, stock-dealer and merchant banker registrations issued in the names of subsidiary companies of the five merged banks. As a result, the issue came under renewed discussion.
Subsequently, the committee formed by the commission reviewed the Bangladesh Bank Resolution Ordinance, 2025. The review found that although the ordinance is applicable to the subsidiary companies of the merged banks, Bangladesh Bank has not yet issued any directive to the commission in this regard. As a result, the concerned subsidiary institutions are currently considered legally valid.
After reviewing the ordinance, BSEC stated that the stock-broker, stock-dealer and merchant banker registration certificates issued in the names of subsidiary companies of the five merged banks would also fall under its scope.
According to Section 2, read with sub-section (3) of Section 1 of the ordinance, if an institution is regulated by an authority other than Bangladesh Bank and Bangladesh Bank intends to take any action concerning such an institution, it must consult the relevant regulatory authority and inform it of the measures taken.
BSEC noted that since Bangladesh Bank has not informed the commission of any such action so far, the concerned subsidiary companies remain valid and may continue their operations. Therefore, at this stage, there is no need for the commission to initiate communication with Bangladesh Bank regarding these subsidiary companies.
Under these circumstances, it would not be reasonable to suspend or cancel the renewal of registration certificates of any subsidiary brokerage institutions solely due to the merger of the five banks. Rather, the key consideration for registration renewal will be compliance with prevailing securities laws, rules, regulations and eligibility criteria.
Failure to renew registration would deprive clients and investors of the concerned brokerage houses of share trading, BO account services, margin facilities and other investment-related services, which would be contrary to investors’ interests.
Considering all these aspects, the commission has opined that the registration certificates of SIBL Securities and other subsidiary institutions of the merged banks will be renewed in the normal course, in compliance with applicable laws and regulations. If any complexities arise in the future due to the merger, necessary measures will be taken based on legal opinions.
BSEC spokesperson Abul Kalam said, “Shutting down the operations of any subsidiary institution or refusing to renew its registration solely due to a merger is not justified. If the concerned brokerage houses comply with prevailing laws, rules and eligibility requirements, they will be allowed to continue operations in order to protect investors’ interests.”