Gold and silver hit record highs Monday while most equity markets fell after Donald Trump revived trade war fears by threatening several European nations with tariffs over their opposition to the United States buying Greenland.

The US president has fanned already-rising geopolitical tensions this month by insisting that Washington would take control of the North Atlantic island, citing national security needs.

And on Saturday, after talks failed to resolve "fundamental disagreement" over the Danish autonomous territory, he announced he would hit eight countries with fresh levies over their refusal to submit to his demands.

He said he would impose 10 percent tariffs on Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands and Finland from February 1 -- rising to 25 percent from June 1 -- if they did not agree to the takeover.

The announcement drew an immediate response, with a joint statement from the countries saying: "Tariff threats undermine transatlantic relations and risk a dangerous downward spiral."

The move also threatened a trade deal signed between the United States and European Union last year, with German Foreign Minister Johann Wadephul telling ARD television: "I don't believe that this agreement is possible in the current situation."

Meanwhile, aides to French President Emmanuel Macron said he would ask the EU to activate a never-before-used "anti-coercion instrument" against Washington if Trump makes good on his threat.

This measure allows for curbing imports of goods and services into the EU, a market of 27 countries with a combined population of 450 million.

Bloomberg reported member states were discussing the possibility of retaliatory levies on €93 billion ($108 billion) of US goods.

The prospect of a trade war between the global economic heavyweights shook markets, with safe haven assets extending gains that had come on the back of Trump's threats against Iran last week and the US ouster of Venezuelan president Nicolas Maduro.

Gold, a key go-to in times of turmoil, hit a peak of $4,690.59, while silver struck $94.12.

On equity markets, Tokyo, Hong Kong, Shanghai, Sydney, Singapore and Wellington retreated, though there were gains in Seoul and Taipei.

European and US futures sank.

The dollar also retreated against its peers, with the euro, sterling and yen all higher.

"The next signpost is whether this moves from rhetoric to policy, and that is why the concrete dates matter," wrote Charu Chanana, chief investment strategist at Saxo Markets.

"On the European side, the decision path matters as much as the headline, because there is a difference between merely mentioning the anti-coercion instrument as a signal and formally pursuing it as action.

"Even if the immediate tariff threat gets negotiated down, the structural risk is that fragmentation keeps rising, with more politicised trade, more conditional supply chains, and higher policy risk for companies and investors."

There was little major reaction to data showing China's economy expanded five percent last year, in line with its target. However, growth in the final three months slowed sharply from the previous quarter.

Investors in Seoul and Taipei brushed off a warning from US Commerce Secretary Howard Lutnick that South Korean chipmakers and Taiwan firms not investing in the United States could be hit with 100 percent tariffs unless they boost output in the country.

- Key figures at around 0230 GMT -

Tokyo - Nikkei 225: DOWN 1.0 percent at 53,412.88 (break)

Hong Kong - Hang Seng Index: DOWN 0.7 percent at 26,670.01

Shanghai - Composite: DOWN 0.1 percent at 4,099.23

Euro/dollar: UP at $1.1628 from $1.1604 on Friday

Pound/dollar: UP at $1.3397 from $1.3382

Dollar/yen: DOWN at 157.54 yen from 158.07 yen

Euro/pound: UP at 86.79 pence from 86.69 pence

West Texas Intermediate: UP 0.1 percent at $59.52 per barrel

Brent North Sea Crude: FLAT at $64.15 per barrel

New York - Dow: DOWN 0.2 percent at 49,359.33 (close)

London - FTSE 100: FLAT at 10,235.29 (close)

Over the past decade, ESG (Environmental, Social, and Governance) reporting has gradually moved from a voluntary practice to a mandatory legal framework worldwide.

Alongside European markets such as the London Stock Exchange, Euronext, and the Frankfurt Stock Exchange, ESG reporting has now become mandatory in Asian markets like Singapore and India.

Despite its global importance, ESG reporting remains largely absent in Bangladesh. While some multinational and fundamentally strong companies follow ESG practices partially, there is still no effective or mandatory initiative at the regulatory level.

According to sector insiders, ESG has become a pressing necessity for Bangladesh's capital market in order to restore investor confidence and attract foreign investment. Confidence has not fully returned since the market crash of 2010, nor has foreign investment increased significantly. Frequent policy changes, lack of transparency, and lagging ESG standards are cited as the main reasons behind this reluctance.

However, recently, a total of 16 companies listed on Bangladesh's stock market have been included in the Bloomberg ESG universe.

Notable among them are Grameenphone, BAT Bangladesh, Marico Bangladesh, BRAC Bank, IDLC Finance, Square Pharmaceuticals, Walton Hi-Tech, LafargeHolcim, MJL Bangladesh, BSRM, Linde Bangladesh, Reckitt Benckiser Bangladesh, Singer Bangladesh, Heidelberg Materials Bangladesh, Robi Axiata, and City Bank.

To address post-LDC challenges and achieve the SDGs, business organisations in the country have begun working on ESG issues. The Metropolitan Chamber of Commerce and Industry (MCCI) has already formed a 10-member committee to work on ESG development.

Although ESG is not mandatory in Bangladesh, the Dhaka Stock Exchange is working with GRI, which enables listed companies to prepare sustainability reports.

However, it has been observed that Bangladeshi companies prepared ESG reports partially in previous years. Due to the lack of mandatory requirements, most of these companies did not continue the practice.

When asked, Abul Kalam, Director and Spokesperson of the Bangladesh Securities and Exchange Commission (BSEC), said that BSEC has taken active initiatives to bring ESG reporting under a legal framework to enhance transparency and accountability in the capital market. Given the growing importance of ESG reporting, the commission is treating the matter with utmost seriousness.

He noted that under the current Corporate Governance Code, ESG standards are only partially complied with, which is insufficient to ensure full transparency. To address this limitation, work is underway to revise the Corporate Governance Code, where ESG reporting will be incorporated as a strong and effective provision.

Bangladesh Bank's 2022 Environmental and Social Risk Management (ESRM) guidelines and the 2020 Sustainable Finance Policy require banks to consider environmental and social risks. As a result, rapid growth has been observed in green and sustainable finance. In the first quarter of 2025, green finance reached approximately Tk8,763 crore and sustainable finance reached around Tk1.49 lakh crore, representing growth of 21% and 69% respectively, demonstrating that the policies are effective and that financial institutions are increasingly inclined toward environmentally friendly investments.

Arif Hossain Khan, Executive Director of Bangladesh Bank, told The Business Standard that banks are being encouraged to provide greater credit facilities to companies investing in environmentally friendly projects in Bangladesh. At the same time, Bangladesh Bank is closely evaluating ESG issues. However, considering the current market conditions, the country is not yet ready to make ESG mandatory.

Tarek Refat Ullah Khan, Managing Director of BRAC Bank, said that ESG reporting is now essential for a climate-vulnerable country like Bangladesh. "Bangladesh faces climate risks such as floods, cyclones, and water scarcity, which directly affect businesses and investments financially. ESG reporting helps identify risks that are not captured in conventional financial reporting. Foreign investors now expect disclosures in line with international standards such as ISSB or GRI."

He added that as more than 35% of BRAC Bank's shares are held by foreign investors, the bank has been regularly disclosing such information for the past three years.

Md Mostafizur Rahman Razu, Head of EHS & Sustainability at Walton Hi-Tech Industries, said that sustainability at Walton is fully integrated into everyday operations and decision-making.

From reducing carbon and water footprints to recycling wastewater and generating renewable energy, Walton's initiatives demonstrate a strong commitment to environmental protection, workplace safety, and social responsibility. The company's strategic approach sets a benchmark for responsible industrial growth.

He said that in FY 2024–25, Walton achieved significant progress: reducing its carbon footprint by 11.4%, reducing its water footprint by 10.7%, recycling 52% of process wastewater, and generating 13 MW of renewable solar energy, with a target of 50 MW by 2026.

Square Pharmaceuticals' Chief Financial Officer, Muhammad Zahangir Alam, said, "We report ESG from an ethical standpoint. Square Pharma places importance on every aspect of ESG and publishes this report every December. We believe that for companies aiming to play a significant role in the global pharmaceutical industry, publishing such reports is extremely necessary."

Akramul Alam, Head of Research at Royal Capital, identified four major challenges to ESG implementation in Bangladesh. According to him, "First, many investors prioritise short-term profits over long-term sustainability and are unwilling to bear the additional costs of ESG compliance. Second, no globally aligned ESG roadmap suitable for Bangladesh's context has yet been developed. Third, companies are unable to allocate sufficient resources to achieve targets for reducing carbon emissions or improving energy efficiency. Fourth, regulatory oversight remains limited."

Nabil J Ahmed, Executive Director (Standard Setting) of the Financial Reporting Council (FRC), said that ESG is no longer an option. He stated, "It is essential for a stable economy. Especially for the export-oriented ready-made garment sector, ESG is the key to maintaining international trade relationships. ESG reporting will reduce information asymmetry and make the capital market more attractive to foreign investors."

He further said that the FRC is currently working toward adopting the International Sustainability Standards Board frameworks, specifically the General Requirements and Climate-related Disclosures. In addition, Bangladesh Bank's Sustainable Finance Policy has already laid the groundwork by encouraging banks to prioritise green investments.

Professor Abu Ahmed, capital market analyst and Chairman of ICB, said, "Bangladesh should begin practising ESG because it enhances companies' long-term sustainability. Over the past 30 years, many Bangladeshi investors have been deceived after investing in various companies – companies went bankrupt or management engaged in fraud. If ESG had been in place, investors would at least have been able to understand when to invest and when to exit a company."

Dr Fazle Rabbi Sadeq Ahmed, a prominent expert in agriculture, climate change, and the environment in Bangladesh and Deputy Managing Director of the Palli Karma-Sahayak Foundation, told The Business Standard that ESG practices in Bangladesh are currently voluntary. Some garment companies, particularly exporters, are following these practices.

The upward trend in inward remittances continued and 56.3 percent growth in January, with receiving over US $1.86 billion in 17 days of the month.

Bangladesh received $18.12 billion in inward remittances from July to January 17, 2026, in the current fiscal year FY 2025-26. It was 14.96 billion in the same period of the previous FY2024-25, and saw a growth of 21.1 percent.

Blessed by strong remittances, Bangladesh’s gross forex reserves have surpassed $33 billion, up from $29 billion under the IMF’s BPM6 standard.

Arif Hossain Khan, Executive Director and spokesperson of Bangladesh Bank, said the expatriates have sent $1.86 billion in the first 17 days of January 2026, which was $1.19 million in the same period of January 2025. It means the remittance earnings grew by 56.3 percent in this time.

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.

In FY2025-26, Bangladesh received $2.47 billion in remittances in July, $2.42 billion in August, $2.68 billion in September, $2.56 billion in October, $2.88 billion in November, and $3.22 billion in December.

This data revealed that the average inward remittance flow was over $2.42 billion in the last six months. This robust flow of remittance influences Bangladeshi policymakers to discourage lending from the IMF with tough conditions.

The Bangladesh Securities and Exchange Commission (BSEC) on Sunday convened its 5th monthly coordination meeting with capital market stakeholders, emphasising major legal reforms and the strategic direction of the market.

Held at the BSEC Multipurpose Hall in the city, the meeting was attended by senior officials, including Dr. Anisuzzaman Chowdhury, Special Assistant to the Chief Adviser, and BSEC Chairman Khondoker Rashed Maqsood, alongside various commissioners and top representatives from stakeholder organisations, said a press release.

Major Legal Reforms Completed BSEC Chairman Khondoker Rashed Maqsood highlighted the commission’s recent legislative achievements, noting that the completion of the Margin Rules 2025, Mutual Fund Rules 2025, and Public Offer of Equity Securities Rules 2025 represents the fulfillment of the regulator’s main reform tasks.

Describing the Initial Public Offering (IPO) as the heart of the capital market, Rashed Maqsood stated that the Public Offer of Equity Securities Rules 2025 has paved the way for new IPOs to enter the market.

He urged market stakeholders to utilize these opportunities immediately, noting that a significant portion of legal reforms had been finalized by 2025.

Focus on collaboration and long-term planning, Dr. Anisuzzaman Chowdhury, who heads the committee formed by the Financial Institutions Division to strengthen the BSEC, addressed the attendees regarding the necessity of collaborative problem-solving.

“We must work to solve the identified obstacles and move forward. Everyone must cooperate and work together for solutions,” Dr. Chowdhury stated, expressing satisfaction with the mechanism of holding regular stakeholder meetings.

He directed stakeholders to resolve existing impediments quickly and called for working toward market development with specific goals set through long-term planning.

The meeting featured detailed open discussions on a wide range of initiatives aimed at market development and reform. Key topics included adoption of a 5-year development plan for the capital market; introduction of new products and the launch of a commodity exchange; listing state-owned and multinational companies; implementation of e-KYC for customer information and online BO account opening; enhancement of API connectivity among capital market institutions and facilitation of Mergers and Acquisitions (M&A) and ensuring institutional good governance.

Furthermore, the discussion addressed the expansion of merchant banks’ scope of work and bringing the Central Counterparty Bangladesh Limited (CCBL) into operation. To boost investor confidence and awareness, initiatives to involve district administrations and broadcast fortnightly investment education programs on Bangladesh Television were also discussed.

The summit saw the participation of key market leaders, including DSE Chairman Mominul Islam, CCBL Chairman Major General (Retd.) Md. Wahid-Uz-Zaman, DSE Brokers Association (DBA) President Saiful Islam, and ICB Managing Director Niranjan Chandra Debnath.

Representatives from the Bangladesh Merchant Bankers Association (BMBA), Chittagong Stock Exchange (CSE), and various asset management companies were also present.

The Bangladesh Bank (BB) will not change its decision about paying no profits on deposits for 2024 and 2025 at five shariah-based banks now undergoing a merger, even as depositors staged protests at a number of branches.

The central bank confirmed this yesterday as the move aligns with shariah principles, under which no profit is distributed when banks incur losses, said BB officials.

Last week, BB instructed five merging lenders to recalculate their deposit balances and refrain from providing any profit for 2024 and 2025.

The banks -- First Security Islami, Social Islami, Union, Global Islami, and EXIM -- are being merged to form a new state-run institution, Sammilito Islami Bank PLC.

After the decision, depositors of the five banks expressed anger, disrupting normal operations at some branches of the commercial lenders.

The banks reported the unrest to BB and requested a reconsideration. Meanwhile, officials from the bank resolution department of BB met with the governor yesterday.

According to an official from the department who wished to remain anonymous, the governor said the decision would not be reversed as it conforms with shariah law.

He added that backing away could jeopardise the merger initiative.

Arief Hossain Khan, executive director and spokesperson for the BB, said the central bank remains firm on its stance.

On January 14, the banking regulator sent letters to the five troubled banks, stating that deposit balances would be recalculated based on positions as of December 28, 2025 and that no profit would be applied to deposits from January 1, 2024, to December 28, 2025.

Previously, it was decided that profits on deposits would be paid at the bank rate, which currently stands at 4 percent.

A day after the directive, BB Governor Ahsan H Mansur, at a press briefing, said that the move follows shariah principles.

“However, depositors will receive their full principal amount,” he said.

BB officials estimated that if implemented, the decision would reduce the banks’ liabilities by Tk 10,000 crore.

At the end of September last year, total deposits of these banks stood at Tk 141,000 crore, while the number of depositors was 75 lakh.

Officials of the merging banks said many depositors have been visiting branches and issuing threats. Some have remained at branches all day, causing operations to grind to a halt, according to letters sent to authorities.

Branch managers reported that customers have taken an “aggressive stance” and, in some locations, “transactions have been suspended”.

A senior official of Social Islami Bank told The Daily Star that if the decision is implemented, it will be “very difficult to handle customers”.

The Bangladesh Securities and Exchange Commission (BSEC) has carried out major legal reforms in the stock market, said its chairman, Khondoker Rashed Maqsood.

The capital market saw significant changes in 2025 with the completion of the Margin Rules, the Mutual Fund Rules, and the Public Offer of Equity Securities Rules, he said at a stakeholders’ meeting organised by the commission yesterday at its office in the capital.

“The heart of the capital market is the initial public offering (IPO), and the pathway for new IPOs to enter the market has been made easier through the public offer-related rules,” the BSEC chairman said.

“Now is the time to make proper use of this opportunity, and market stakeholders must work towards this,” he added.

Maqsood highlighted the commission’s initiatives and activities aimed at reforming and developing the capital market.

The pathway for new IPOs to enter the market has been made easier through the public offer-related rules
“We must work to resolve the identified obstacles or problems and move forward,” said Anisuzzaman Chowdhury, special assistant to the chief adviser and chief guest of the event.

He emphasised the need for unanimous decisions based on cooperation and collective opinions, and the importance of ensuring their implementation.

He also directed that the existing identified obstacles be resolved swiftly and called upon market stakeholders to work towards capital market development by setting clear targets under a long-term plan.

Experts at the meeting emphasised adopting a five-year plan for capital market development, introducing new products, listing state-owned enterprises and multinational companies in the capital market, developing the mutual fund sector, and ensuring institutional governance.

Mominul Islam, chairman of the DSE; Saiful Islam, president of the DSE Brokers’ Association of Bangladesh; Nuzhat Anwar, managing director of the DSE; and Niranjan Chandra Debnath, managing director of the ICB, were also present at the meeting.

Meanwhile, the DSEX, the benchmark index of the DSE, jumped 76 points, or 1.53 percent, to 5,035 points yesterday. With that, the index crossed 5,000 points after one and a half months.

China's economy expanded five percent in 2025, Beijing said Monday, one of its slowest rates of growth in decades as it struggles with persistently low consumer spending and a debt crisis in its property sector.

Leaders set a growth target of "around five percent" for last year, following a five percent rise in 2024.

The economy grew at 4.5 percent between October and December last year, in line with expectations but marking a significant slowdown towards the end of the year.

While China's GDP grew enough for officials to declare victory, analysts warn that growth has been uneven and figures mask weak sentiment on the ground.

Chinese consumers remain jittery about the wider economy and high unemployment, even though officials have relaxed fiscal policy and subsidised the replacement of household items in a sputtering bid to boost spending.

Retail sales, a key indicator of consumption, rose 0.9 percent year-on-year in December -- the weakest pace since the end of 2022, when stringent zero-Covid measures ended.

Last month's sales were worse than the 1.3 percent year-on-year growth recorded in November, extending a months-long slowdown.

China's crucial property sector was once a major indicator of the country's economic strength.

But in recent years it has failed to overcome a flagging debt crisis despite rate cuts and loosened restrictions on homebuying.

Fixed-asset investments in China shrunk 3.8 percent year-on-year in 2025, an inevitable rebalancing following a property and infrastructure boom in recent decades.

Real estate investment was down 17.2 percent last year.

House prices have risen slightly in some large cities but the broader market remains sluggish.

Last year also saw the return of Donald Trump to the White House and the revival of a fierce trade war between the world's two largest economies.

Chinese President Xi Jinping and Trump reached a tentative truce to their fierce trade war when they met in late October, agreeing a pause to painful measures that included lofty tit-for-tat tariffs.

Official data showed Chinese exports to the United States plunged by 20 percent in 2025, but that had little impact on demand for Chinese products elsewhere.

Robust exports remained a bright spot in the cloudy economic picture despite that bruising trade war.

China's trade surplus hit a record $1.2 trillion last year, with officials lauding a "new historical high" filled by other trade partners.

Shipments to the ASEAN group of Southeast Asian nations rose 13.4 percent year-on-year, while exports to Africa saw 25.8 percent growth.

Exports to the European Union were also up 8.4 percent, though imports from the bloc dipped.

Non-performing loans (NPLs) at the country's non-bank financial institutions (NBFIs) climbed sharply to Tk29,408 crore by the end of September 2025, accounting for more than a third of total outstanding loans, highlighting deepening stress in the sector.

According to Bangladesh Bank data, NPLs at financial institutions at the end of September 2025 account for 37.11% of total outstanding loans of Tk79,251 crore. This marks an increase of Tk1,867 crore in just three months, from Tk27,541 crore at the end of June, when classified loans accounted for 35.72% of total disbursed credit.

An analysis of the data indicates that while overall loan outstanding in the fragile NBFI sector has increased in recent months, classified loans have grown at a significantly faster pace. This suggests that not only previously disbursed loans, but also newly issued loans, are increasingly slipping into the non-performing category.

Golam Sarwar Bhuiyan, chairman of the Bangladesh Leasing and Finance Companies Association (BLFCA), told TBS that the true extent of bad loans had long been concealed. "The amount of non-performing loans in Bangladesh's financial companies already existed, but it was hidden," he said. "After 5 August 2024, the central bank management began strict monitoring, forcing financial companies to disclose the actual level of NPLs."

He added that following the change in regime, many borrowers who had taken loans from financial companies had left the country, leading to immediate loan classification. "Many loans were repeatedly rescheduled even though they had already defaulted," Bhuiyan said.

Confidence in the sector has also been shaken by regulatory actions. The Bangladesh Bank has already announced plans to wind down nine financial companies, prompting depositors to withdraw funds and further straining liquidity across the sector. "Financial companies are not getting enough funds due to the lack of confidence," Bhuiyan noted.

In December last year, the central bank's board decided to liquidate a group of deeply distressed NBFIs after their loan portfolios collapsed under massive defaults. In the first phase, the Bangladesh Bank selected nine institutions – FAS Finance, Bangladesh Industrial Finance Company (BIFC), Premier Leasing, Fareast Finance, GSP Finance, Prime Finance, Aviva Finance, People's Leasing and International Leasing – whose combined depositor exposure could be managed within the Tk5,000 crore fiscal limit set by the government.

A senior central bank official said the government had instructed the Bangladesh Bank to ensure that the fiscal burden of the liquidation process remains within that ceiling.

The Bangladesh Bank's Financial Stability Assessment Report for the September 2024 quarter also paints a bleak picture for the sector. It noted a worsening trend in NBFIs' performance due to a further deterioration in asset quality and profitability. Total assets of financial institutions declined to Tk99,493 crore, down 1.22% from the April-June 2024 quarter, alongside a broader downturn in profitability.

The benchmark index of the Dhaka Stock Exchange rebounded above the psychologically significant 5,000-point mark today (18 January) after nearly two months, as broad-based buying enthusiasm lifted the market sharply.

The rally reflected renewed investor confidence following a prolonged period of correction, with participation rising across most sectors, according to the market insiders.

The DSEX, the prime index of the DSE, jumped 76 points or 1.53% to close at 5,035. The last time the index finished above this level was on 27 November 2025, when it closed at 5,028.

Market operators said the decisive break above the 5,000 mark has lifted short-term market sentiment, with investors widely viewing the level as a key psychological resistance.

The blue-chip DS30 index also posted a gain, advancing 26 points or 1.38% to settle at 1,939, indicating buying interest in large-cap and fundamentally strong stocks.

Market breadth was overwhelmingly positive, with 290 issues advancing against just 42 decliners, while 57 stocks remained unchanged on the DSE trading floor.

Reflecting the upbeat mood, total market capitalisation of the DSE rose by around Tk6,000 crore to Tk6.90 lakh crore by the end of the session.

Daily turnover, another crucial indicator of market health, increased significantly, rising 25% to Tk474 crore compared to the previous session, suggesting improved liquidity and higher trading activity.

Stocks that played a major role in pulling the indices higher included BRAC Bank, Grameenphone, BAT Bangladesh, Beximco Pharmaceuticals and Islami Bank.

These stocks also featured prominently in turnover, alongside Square Pharmaceuticals, City Bank and Lovello Ice-cream, indicating active participation from both institutional and retail investors.

Stockbrokers said investors are gradually returning to the market in search of undervalued opportunities after weeks of cautious trading.

They noted that selective buying of fundamentally strong large-cap stocks lifted market confidence, with speculative interest returning to certain beaten-down segments.

Notably, liquidation-risky and loss-making non-bank financial institutions dominated the top gainers' list, with Peoples Leasing, Premier Leasing, Prime Finance, BIFC and Fareast Finance recording double-digit price increases.

Analysts cautioned that such sharp rallies in weak fundamentals-driven stocks carry higher risks, even though they often attract short-term traders during bullish phases.

On the losing side, Apollo Ispat, Nurani Dyeing, Renwick Jajneswar, Fareast Life Insurance and MBL First Mutual Fund posted modest declines.

Meanwhile, the Chittagong Stock Exchange also ended the session in positive territory. The CSCX index rose 103 points to 8,728, while the CASPI advanced 165 points to close at 14,087. Turnover on the port city bourse stood at Tk7.45 crore, reflecting moderate trading activity.

The general manager, the third-highest post at the Sammilito Bank PLC, can be appointed through open competition, transfer of GMs from state banks, or specially selecting officials from the five banks being merged to form the new bank, the government has decided.

Meanwhile, appointments to the managing director (MD) and deputy managing director (DMD) posts will be done through an open competitive process, according to a policy issued by the Financial Institutions Division (FID) yesterday.

The policy states that until the service regulations for the Sammilito Bank are formulated, appointments to these three positions will be made under this policy.

However, the process of appointing the MD had already begun through a newspaper advertisement before the new policy was issued.

According to sources familiar with the matter, 10 candidates have been shortlisted based on the prescribed qualifications.

From these 10, a subcommittee led by the Bangladesh Bank (BB) Governor Ahsan H Mansur will finalise one candidate for appointment.

For the positions of MD and DMD, recruitment will be conducted through open competition based on required educational qualifications and other experiences.

For the GM position, in addition to open competition, two separate arrangements will apply. One arrangement is that existing GMs working in state-owned, specialised, and financial institutions may be transferred to the newly formed bank with the approval of the finance adviser/minister.

The other arrangement is that qualified and suitable officials of equivalent rank from the merging banks - First Security Islami Bank, Exim Bank, Global Islami Bank, Union Bank, and Social Islami Bank. They may be appointed to the GM positions of the new bank.

The age limits for eligibility are 65 years for MD, 62 years for DMD, and 60 years for GM. The tenure of these positions will be three years on a contractual basis, with the possibility of renewal if necessary.

An eight-member selection committee led by the finance adviser/minister will decide on the appointment of the MD and DMD.

The members will include the principal secretary to the prime minister or chief adviser, the BB governor, the finance secretary, the FID secretary, the public administration secretary, and the chairman of the Shariah Advisory Board of the BB.

Meanwhile, the FID has issued a separate revised policy for appointment and promotion to these three positions in state-owned banks and financial institutions. The new policy reduced the minimum tenure in the previous post for promotion to two years, from three years.

A ministry official said the criteria have been revised so that those who gained opportunities during the previous government cannot take advantage of promotion merely on the basis of seniority.

Another major revision is the change in seniority score, which has been increased to 15 from five.

The National Board of Revenue (NBR) has launched an automated system that allows advance income tax paid at the import stage to be directly credited to taxpayers' e-returns, aiming to ease long-standing difficulties faced by importers.

With effect from yesterday (18 January), the NBR has completed and activated an effective system integration between its e-return platform and ASYCUDA World. As a result, income tax paid by taxpayers during the import process will now be automatically reflected as a credit in their electronic income tax returns.

The move is expected to significantly reduce hassles that importers have faced for years in claiming tax credits on advance income tax paid at the import stage, reads an NBR press release issued yesterday. It will also make e-return filing easier for import-based businesses.

Under the new system, when an importer enters business income information in the e-return, details of advance income tax paid against each bill of entry for the relevant assessment year will be automatically populated on a bill-of-entry basis. The tax paid at the import stage will then be adjusted against the taxpayer's total income tax liability, and the payable amount will be calculated accordingly within the system.

The NBR also shared updated figures on the progress of the online tax return initiative. Since the official launch of online e-return filing for the 2025-26 tax year on 4 August 2025 by Finance Adviser Dr Salehuddin Ahmed, more than 46 lakh taxpayers have registered on the e-return system, while nearly 33 lakh have already submitted their returns.

Notably, the NBR said many taxpayers for whom e-return submission is not mandatory are also choosing to file their returns online. For the first time, non-resident Bangladeshis are also able to register and submit their income tax returns through the system. So far, around 4,000 expatriate Bangladeshis have filed their income tax returns for the 2025–26 tax year online.

According to the NBR, no documents or supporting papers are required to be uploaded when submitting an online e-return. The authority said it is continuing all efforts to ensure that individual taxpayers can pay income tax and submit returns easily from home.

The NBR has urged all individual taxpayers to submit their income tax returns online using the e-return system by 31 January 2026.

The commerce ministry has recommended that the revenue board end the duty-free import of certain types of yarn under the bonded warehouse facility.

Local spinners have welcomed the recommendation, but local apparel manufacturers say this could push up production costs and undermine the country’s export competitiveness.

In a recent letter to the National Board of Revenue (NBR), the ministry recommended withdrawing the bonded facility for importing yarn of 10 to 30 count - a medium-to-coarse thickness range widely used in knitwear manufacturing. A higher count indicates less thickness.

The ministry cited mounting pressure on local spinning mills from cheaper imports, particularly from India.

Readymade garment exporters say the proposal risks unsettling the country’s largest export sector at a time of global uncertainty and intense price competition.

Leaders of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) voiced their concerns regarding the move and announced to hold a press conference on the issue today.

BGMEA Director Faisal Samad said the suspension of duty-free imports would force garment manufacturers to rely more heavily on local yarn suppliers, where prices are already rising.

“The garment sector will be severely affected as we will have to buy yarn at higher prices from a monopolised local market,” he said, adding that BGMEA members had raised the issue at an emergency meeting.

He declined to comment further ahead of the press conference, but said exporters were deeply concerned about the government’s decision to restrict imports of “widely consumed” yarn.

BKMEA Executive President Fazlee Shamim Ehsan said imported yarn accounts for nearly 30 percent of the country’s total demand - roughly $1.5 billion worth - with most of it sourced from India. The remaining demand is met by domestic spinners.

He said local mills had already started quoting prices $0.25-0.3 (Tk 30-36) per kilogramme higher following the proposed restriction.

“It is not right to harm the export-oriented garment industry to salvage the spinning sector,” he said, arguing that targeted incentives of four to five percent could have been offered to primary textile producers instead.

The push for restricting imports follows sustained lobbying by the Bangladesh Textile Mills Association (BTMA), which has warned that some mills in the primary textile sector, which have investments of about $25 billion, are facing the risk of closure due to the import of cheap yarn from India.

In late December, BTMA urged the government to either suspend the bonded warehouse benefit or impose a 20 percent tariff on imports of the popular yarn counts.

According to BTMA sources, Bangladesh uses 400 crore kilogrammes of yarn in a year, with some 46 percent coming from India.

According to BTMA, Indian traders have been selling 30-count yarn in Bangladesh at $2.50 to $2.60 per kilogramme, even though the same yarn sells for $2.90 to $2.93 per kilogramme in India.

The association said such pricing reflects heavy incentives and has left local spinners struggling, with unsold yarn stocks reportedly reaching Tk 12,000 crore by the end of December.

The commerce ministry echoed these concerns in its letter to the NBR, noting that yarn imports surged sharply in recent years.

Import volumes rose by more than 68 percent in fiscal year 2023-24 (FY24) compared to the previous year, while values increased by over 46 percent. In FY25, volumes grew by another 18.4 percent and values by 26.3 percent.

The ministry said at least 50 spinning mills have already shut down and warned of further losses if the current import trend continues.

It also cautioned that growing dependence on imported yarn could reduce the garment sector’s competitiveness due to lengthened lead times, reduce local value addition, and put pressure on foreign currency reserves.

Exporters, however, argue that limiting access to competitively priced yarn could weaken Bangladesh’s position in global apparel markets, especially as buyers remain highly price-sensitive.

Showkat Aziz Russell, president of BTMA, said the issue must also be seen in the context of Bangladesh’s graduation from least developed country (LDC) status.

He said exporters would need to comply with “two-stage transformation” rules – using locally spun yarn instead of imported cotton – to qualify for preferential market access in destinations such as the European Union (EU), the United Kingdom and Japan after graduation.

He also noted that securing GSP Plus benefits from the EU would require at least 40 percent local value addition, compared to current levels of around 35 percent in spinning, knitting at 20 percent and weaving at 25 percent.

The local spinners mainly produce the 30-count yarn to serve the garment exporters.

While local mills can supply about 90 percent of yarn demand for knitwear and 45 percent for woven garments, the rest still depends on imports from countries including India, China and Pakistan.

Spinners said in fiscal year 2025-26, $2.0 billion worth of yarn was imported from India, with local mills using 1,600 tonnes daily.

Bangladesh is the largest destination for Indian yarn exports, receiving 44 percent of the total, while Cambodia ranks second at 21 percent.

Earlier, in April last year, Bangladesh banned yarn imports from India through land ports, though sea-route imports remained unaffected. Millers have said they do not seek a complete ban, but rather measures to curb what they describe as dumping.

Contacted, Mohammad Naziur Rahman Miah, first secretary of customs (export and bond), said the NBR had received the commerce ministry’s letter. “The issue is under consideration. No decision has been made yet.”

Defaulted loans at the country’s non-bank financial institutions (NBFIs) have surged to a record 37 percent, highlighting the sector’s fragile condition.

As of September last year, 35 NBFIs held Tk 29,408.66 crore in bad loans, equivalent to 37.11 percent of their total disbursed loans of Tk 79,251.11 crore, according to Bangladesh Bank (BB) data.

A year earlier, in September 2024, the sector’s non-performing loan ratio stood at 35.52 percent.

Industry insiders attribute the rise in bad loans to “the legacy of the massive irregularities and scams that took place seven to eight years ago”.

Referring to a Bangladesh Bank probe, they said that PK Halder, the former managing director of NRB Global Bank (later renamed Global Islami Bank), defrauded at least Tk 3,500 crore from four NBFIs.

The affected institutions are People’s Leasing, International Leasing, FAS Finance, and Bangladesh Industrial Finance Company Limited (BIFC). As a result, these four non-banks became ailing, with over 90 percent of their loans turning bad.

Industry insiders said the central bank’s inadequate supervision is to blame for the current state of the NBFI sector. Many non-banks are now unable to repay depositors because of widespread irregularities and scams.

Amid this situation, the central bank is planning to liquidate nine ailing companies.

These are FAS Finance, Bangladesh Industrial Finance Company, Premier Leasing, Fareast Finance, GSP Finance, Prime Finance, Aviva Finance, People’s Leasing, and International Leasing.

The government has pledged Tk 5,000 crore to repay depositors of these NBFIs.

A senior central bank official said administrators are expected to be appointed to these NBFIs soon.

Industry sources said some banks and NBFIs have fallen victim to an “unholy nexus,” which they described as a serious threat to the integrity of the overall financial system.

Additionally, several other NBFIs have been infiltrated by unscrupulous investors who exploited their positions as chairpersons and directors for personal gain, they added.

British Prime Minister Keir Starmer spoke to US President Donald Trump on Sunday after talking to the leaders of Denmark, the EU and NATO, to say he believed "applying tariffs on allies for pursuing the collective security of NATO allies is wrong".

A Downing Street spokesperson said Starmer held phone calls with Danish Prime Minister Mette Frederiksen, European Commission President Ursula von der Leyen and NATO Secretary General Mark Rutte. He then spoke to Trump.

"In all his calls, the prime minister reiterated his position on Greenland. He said that security in the High North is a priority for all NATO allies in order to protect Euro-Atlantic interests," the spokesperson said.

All depositors of five troubled Islamic banks will receive their deposited funds within the next two years, Bangladesh Bank Governor Ahsan H Mansur said today (15 January).

"The decision on refunding deposits was taken based on the advice and consent of the Shariah Council and every effort is being made to protect the interests of depositors," he said while speaking at a press briefing regarding the Sammolito Islamic banks.

He added that the process of returning depositors' money has also been designed strictly in accordance with Shariah Council guidelines.

The governor clarified that the government is not only returning the principal amounts. "Investment profits or interest that were recorded on paper up to 2024 will also be paid to depositors."

"If someone kept their money in these banks for a long period … say, 10 years … they will receive their full principal along with the returns that were shown for that period," he said.

"Even if those investments were mismanaged or did not actually take place due to failures of the previous management, the decision has been made to compensate depositors in full," he added.

Mansur added that although Islamic banking principles generally require losses from genuine investments to be shared among partners, in this case the losses have not been passed on to depositors. Instead, the government has assumed responsibility for the losses.

According to the governor, revised accounts for the 2024–25 fiscal year show significant financial losses at these banks, but neither past nor current losses have been imposed on depositors.

"There are some limitations under Islamic Shariah principles, which is why not all additional benefits could be provided. However, both the actual deposits and the profits recorded on paper have been paid," he said.

The governor also mentioned that a small group of troublemakers attempted to create unrest at several branches, particularly Union Bank, but no major damage occurred. He urged ordinary depositors not to be influenced by such activities.

Reassuring the public once again, Ahsan H Mansur said that after the appointment of new management, especially for deposits made after the first of this month, there are no restrictions on withdrawals.

Depositors can withdraw funds on demand and are receiving returns at market-based rates, he added.

Industry experts and business leaders have urged the government to adopt business-friendly policies to develop a sustainable packaging sector, arguing that it has the potential to surpass the readymade garment (RMG) industry in export earnings.

The call was made at the closing ceremony of Garment Technology Bangladesh (GTB) 2026, held yesterday at the International Convention City Bashundhara (ICCB) in the capital.

Bangladesh Garments Accessories and Packaging Manufacturers and Exporters Association (BGAPMEA) President Md Shahriar said corrupt individuals involved in money laundering had posed as businessmen and siphoned off large sums from banks, adding that genuine entrepreneurs never plunder a country's wealth.

Bangladesh Textile Mills Association (BTMA) President Showkat Aziz Russell stressed the need for self-reliance, noting that although Bangladesh has achieved self-sufficiency in packaging and accessories, certain policies are pushing the industry towards decline.

He warned that allowing 100% duty-free "free of cost" imports would result in all products being sourced from abroad, threatening the survival of local factories. He also called for a reduction in excessive port charges and levies to enhance the competitiveness of domestic businesses.

Speaking as the chief guest, former commerce and home minister Altaf Hossain Chowdhury expressed optimism after witnessing the sector's dynamism and capacity. He said packaging and accessories exports reached $7.45 billion in the last fiscal year and could surpass the garment sector if provided with the right support.

He also said the BNP would stand by entrepreneurs and work to resolve the sector's challenges if it forms the next government.

Bangladesh Employers' Federation (BEF) President Fazle Shamim Ehsan was present as a special guest at the event.

The four-day event, the country's largest garment technology exhibition, was jointly organised by ASK Trade & Exhibitions Pvt Ltd and the BGAPMEA.

As part of efforts to diversify and expand export trade, the BGAPMEA organised the 15th Garments Accessories and Packaging Expo (GAPEXPO), which featured 350 member and non-member companies across 1,500 stalls.

Companies from India, China, Pakistan, Taiwan, Australia, Germany and Dubai participated in the exhibition. Machinery, raw materials and locally manufactured garments accessories and packaging products were showcased.

Organisers said the expo attracted more than 1,00,000 visitors, creating effective linkages between buyers and sellers. On the final day, eight participating stalls were awarded crests in recognition of being selected as the "best stalls."

The Dhaka Stock Exchange (DSE) saw a moderate rise yesterday (14 January), driven largely by sharp price hikes in several risky and loss-making stocks, raising concerns among market participants about speculative activity overshadowing fundamentals.

The benchmark DSEX advanced 19 points, or 0.40%, to close at 4,966, while the blue-chip DS30 index gained 9 points to settle at 1,908. Despite the positive index movement, overall trading activity weakened, with turnover slipping 4% to Tk369 crore.

Market observers noted that the day's rally was heavily influenced by aggressive buying in financially weak companies, many of which have a history of losses, poor governance, or regulatory challenges.

Shares of FAS Finance and Peoples Leasing topped the gainers' chart after hitting the upper circuit, while Prime Finance and Fareast Finance also posted near double-digit gains. BD Welding and BD Thai Food joined the rally, continuing a recent trend where low-priced and high-risk stocks attract short-term traders seeking quick gains.

Analysts said such price movements are largely detached from company fundamentals and are often fuelled by speculative positioning than by any meaningful improvement in earnings prospects or balance-sheet strength.

Notably, several of the top gainers came from the non-bank financial institution (NBFI) segment, which has been under prolonged pressure due to weak asset quality, liquidity constraints and, in some cases, regulatory action.

Despite these challenges, their share prices surged as retail investors chased momentum amid a lack of clear direction in fundamentally strong stocks.

In contrast, a number of companies faced selling pressure, with Bangladesh Industrial Finance Co Ltd (BIFC) leading the losers after shedding the maximum allowed limit. Shares of Shyampur Sugar, Bay Leasing, HR Textile and Meghna Cement also declined notably.

Turnover concentration remained limited to a handful of stocks, with ACI, Square Pharmaceuticals, City Bank, Orion Infusion, Dominage Steel and Saiham Textile featuring among the most traded issues.

However, traders pointed out that broader market participation remained subdued, as institutional investors stayed largely on the sidelines.

The Chittagong Stock Exchange mirrored the positive sentiment, with its CSCX index rising 21 points to close at 8,612, while the CASPI index added 30 points to finish at 13,915. Turnover at the port city bourse stood at Tk8.59 crore.

The government's earnings from the stock market tumbled last year, hitting a five-year low as indices fell, trading slowed, and investor confidence wavered. Most of these taxes come from stock turnover, and the slowdown has taken a noticeable bite out of revenue.

According to Dhaka Stock Exchange (DSE) data, the government collected just Tk112 crore in FY25 – down a quarter from Tk153 crore the year before. To put it in perspective, this is the lowest since FY21. For context, back in FY22, the government raked in Tk286 crore despite a global market slowdown due to Covid-19, as the DSE was buzzing with activity.

That year, total trading hit a whopping Tk3.18 lakh crore, with daily turnover averaging over Tk1,300 crore – a 29% jump from the previous year.

In FY25, the DSE saw total trading of only Tk1.25 lakh crore, with an average daily turnover of Tk522 crore – a drop of nearly 16% compared with the previous year. The benchmark DSEX index opened strongly in August, reaching 6,016 points and seeing some days with turnover above Tk2,000 crore, as investors cheered the removal of the old government.

But the optimism didn't last long. Macroeconomic worries, weak corporate earnings, and low participation slowly dragged the market down. By late May, the index hit a low of 4,615 points before finishing the year at 4,838 – a 9% drop overall.

Activity on the market stayed sluggish, with investors hesitant to put fresh money in. The size of the market relative to the economy also shrank – the market capitalisation-to-GDP ratio fell to just 12%, showing that equities are playing a smaller role in Bangladesh's financial system. Valuations look tempting on paper, with the price-to-earnings ratio down to 8.6, but that alone hasn't been enough to lure investors back in meaningful numbers.

A managing director at a brokerage firm told The Business Standard, "The capital market is one of the government's money-making avenues. The more people trade, the more the government collects in taxes. Last year, the market barely moved, so revenue dropped."

He added that policymakers need to do more to get the market buzzing again. "After the recent government change, the market's been struggling with the economy. Once the new government takes office, focus should be kept on boosting activity. If the market picks up and businesses linked to it grow, government revenue will rise naturally," he said.

Bangladesh Securities and Exchange Commission (BSEC) Chairman Khondaker Rashed Maqsood has said that many of the reform and development plans undertaken after the current commission assumed office could not be implemented on time due to an acute shortage of manpower.

However, he claimed that despite these limitations, the commission is actively working to develop the capital market. He made the remarks on Thursday afternoon while speaking as the chair at the "BSEC Capital Market Journalism Excellence Awards" ceremony held in the capital.

Regarding BSEC's performance, Khondaker Rashed Maqsood said that against an approved workforce of 370 positions, only 260 officials and employees are currently working at the commission.

He noted that as a government institution, BSEC cannot recruit or take measures beyond the approved manpower structure.

"Despite these constraints, we have tried our best to continue operations on an interim basis," he said.

The BSEC chairman further explained that due to the manpower shortage, the tenure of several committees formed under the commission has had to be extended repeatedly. At the same time, officials are being engaged in multiple investigation activities outside their respective departments. In many cases, a single official is involved in four to seven investigations simultaneously, significantly increasing workload pressure, he added.

However, he assured that there has been no compromise in the quality or effectiveness of investigations. According to him, the commission is taking lawful and effective actions based on the investigation reports submitted by BSEC's investigation officers.

On 30 April, the commission temporarily suspended 21 officials on charges of breaching discipline.

At the event, a total of nine journalists were awarded the BSEC Capital Market Journalism Excellence Award in three categories – print, television, and online – in recognition of their contributions to capital market journalism.

The BSEC chairman also highlighted the positive and constructive role of journalists in ensuring capital market stability, boosting investor confidence, and promoting the development of a transparent, accountable, and advanced capital market system.

Bangladesh's equity investors have suffered steep losses over the long term, with each $100 invested in the country's stock market shrinking to just over $41 in dollar terms, reflecting a value erosion of nearly 59%, according to data from Morgan Stanley Capital International (MSCI).

The figures underscore the prolonged underperformance of Bangladesh's capital market compared to both global and frontier peers, raising fresh concerns about market structure, policy consistency and investor confidence.

According to MSCI's cumulative index performance data calculated up to December 2025, the MSCI Bangladesh Investable Market Index (IMI) stood at $50.39 in gross return terms, far behind the MSCI Frontier Markets IMI at $235.35 and the MSCI All Country World Index (ACWI) IMI at $428.49.

The divergence becomes even starker when net returns are considered. While the MSCI ACWI delivered net returns of $407.18 and frontier markets returned $218.07, MSCI Bangladesh's net return dropped to just $41.25. This means an investor who put $100 into Bangladesh equities over the long run lost nearly 59% of the original value in US dollar terms.

Market analysts say the poor performance reflects a combination of stagnant stock prices, weak liquidity and significant currency depreciation. Although some shares have shown resilience in local currency terms, the sharp fall of the taka against the US dollar has severely eroded dollar-based returns. As a result, even periods of relative price stability in taka have translated into losses for foreign investors once exchange rate effects are taken into account.

MSCI data also show that since November 2009, the MSCI Bangladesh Index has generated an average net return of minus 3.34%, compared to positive returns of 6.29% for frontier markets and 10.07% for the global index. This long-term underperformance has placed Bangladesh at the bottom among comparable markets tracked by global fund managers.

The MSCI Bangladesh IMI, which currently includes 36 companies and covers about 99% of the free-float adjusted market capitalisation, has a total market value of around $5.18 billion. The index is heavily concentrated in a few large-cap stocks, including Square Pharmaceuticals, Beximco Limited, BRAC Bank, Beximco Pharmaceuticals and Grameenphone. Market participants say this narrow investable universe limits diversification opportunities for global funds and increases vulnerability to stock-specific shocks.

A managing director of a brokerage firm said global fund managers largely rely on MSCI indices when allocating capital across countries. Persistent regulatory interventions, such as the imposition of floor prices, frequent policy changes and restrictions on price discovery, have reduced Bangladesh's attractiveness in global index frameworks. Both MSCI and FTSE Russell have maintained restrictions on Bangladesh-related indices due to concerns over market accessibility, liquidity and transparency, further dampening foreign interest.

Foreign investor activity has also weakened sharply in recent months. Data from the Dhaka Stock Exchange show that monthly foreign turnover fell to just $5 million as of mid-December, compared to $30 million in October and $22 million in November. Earlier in 2025, foreign participation had shown brief signs of recovery, peaking at $41 million in May and $40 million in July, but those inflows proved short-lived as global investors steadily reduced exposure.

December witnessed notable selling pressure in several heavyweight stocks, leading to a net foreign outflow of around Tk118 crore. According to the monthly shareholding report, foreign investors sold shares worth roughly Tk120 crore during the month, while buying amounted to only about Tk2 crore. Most of the selling was concentrated in large-cap stocks that traditionally dominate foreign portfolios.

Currently, total foreign investment in the Dhaka bourse stands at around Tk13,000 crore, with only about 36% of listed companies having any foreign shareholding.

The MSCI Bangladesh Index, launched on 1 December 2009, is part of MSCI's broader factor-based analytical framework. MSCI Factor Classification Standards (FaCS) group equities by key drivers of risk and return such as value, size, momentum, quality, yield and volatility – factors widely supported by academic research and validated by MSCI. These factor groups are built using 16 underlying metrics, including book-to-price, earnings and dividend yields, leverage, long-term reversal, earnings variability and beta, derived from MSCI's Barra GEMLT global equity risk model to enable transparent and intuitive fund comparisons.

MSCI Inc, formerly Morgan Stanley Capital International, is a US-based global financial services firm headquartered in New York. It provides widely used equity, fixed-income and real estate indices, multi-asset risk analytics, and ESG and climate solutions, including the MSCI World, Emerging Markets and All Country World indices.

Analysts said the MSCI index methodology is more fundamentally driven and therefore preferred by global fund managers, while the Dhaka Stock Exchange's index construction does not fully follow such internationally accepted standards.

As a result, the country's indices often fail to accurately reflect fundamentally strong stocks. This mismatch means local indices provide limited guidance on underlying corporate performance, making it difficult for investors to make informed and timely investment decisions based solely on domestic benchmarks.