Remittance inflows into Bangladesh hit a historic high of US$ 35.56 billion in the immediate past fiscal year 2025-26, registering a robust double-digit growth driven by strong contributions from expatriates through formal channels.Bangladesh Investment Opportunities

According to the latest data from Bangladesh Bank, the total remittance receipts between July 2025 and June 30, 2026 stood at $35.56 billion. This marks a significant 17.3 percent growth compared to the $30.32 billion received in FY2024-25, also the previous highest remittance inflows in a financial year.

Central bank officials noted that on the final day of the fiscal year (June 30), the country pulled in $120 million in provisional remittance earnings. However, this single-day figure excludes data from 11 commercial banks due to the bank holiday.

Meanwhile, monthly remittance inflows for June 2026 stood at $2.80 billion, reflecting a minor 0.6 percent dip compared to the $2.82 billion recorded during the same month last year (June 2025).

Despite the marginal monthly decline in June, the overall annual trend remained extraordinarily strong throughout the fiscal year, providing a critical buffer to the country’s foreign exchange reserves and macroeconomic stability.

Bangladesh Bank on Tuesday unveiled a monetary policy statement for the first half of the financial year of 2026-2027, making no change in the existing interest rate framework.Bangladesh Market Analysis
The central bank presented the MPS for the July-December period at its headquarters with BB governor Md. Mostaqur Rahman in the chair.

Under the current MPS, the policy rate will remain as high as 10 per cent while the upper ceiling of the interest rate corridor known as SLF (standing liquidity facility) will be 11.50 per cent, and the floor rate or SDF (standing deposit facility) is 7.50 per cent.

The securities commission has decided to allow open-ended mutual funds (MFs) to reinvest profits instead of distributing dividends, subject to approval from trustees.
The decision was taken at a meeting on Wednesday at the office of the Bangladesh Securities and Exchange Commission (BSEC).Bangladesh Investment Opportunities

The reinvestment is not mandatory. If an asset manager proposes reinvesting profits in a pooled fund, it will need approval from the trustee. The trustee may give its consent considering the interest of unitholders and the capital market.

The reinjection of cash will not involve the issuance of reinvestment units (RIU); rather, it will improve the fund's net asset value (NAV).

For example, if a fund earns a profit of Tk 1 per unit with a NAV of Tk 10, and the profit is reinvested, the NAV will increase to Tk 11 per unit.

BSEC spokesperson Md Abul Kalam explained how reinvestment will benefit investors.

The FY27 budget imposes a 15 per cent tax on dividend income but waives capital gains tax for mutual funds. Unitholders are required to pay Tk 0.15 in tax against dividend income of Tk 1.

In case of reinvestment, they will not pay the tax but will be able to redeem units at any time at the rate of the increased NAV.

The market will also benefit through fresh investments, said Mr Kalam.

In contrast, the scope of reinvestment previously offered to close-ended funds was detrimental to investors. Neither could they get dividends, nor could they surrender units at NAV. They saw their money stuck at heavily discounted market prices, with funds' maturity periods extended.

Presently, the number of open-ended funds stands at 94 while close-ended funds number 29. Total assets under management in the mutual fund industry stood at Tk 121.7 billion as of March 31, according to IDLC Asset Management.

The securities regulator imposed a bar on launching any new close-ended fund in the revised mutual fund rules, which were brought into effect last year.

Meanwhile, at Wednesday's meeting, the BSEC returned the authority to fix the limits of circuit breakers on the market prices of listed securities to the exchanges.

From now on, the exchanges will be able to determine market control mechanisms.

As per the securities rules and regulations, the stock exchanges can set market control parameters and operational requirements independently.

Nevertheless, the securities regulator created scope to intervene through a directive issued in June 2021.

"The exchanges should be allowed to exercise their authority in line with their rules and regulations," said the BSEC spokesperson.

The regulatory intervention had prevented the stock exchanges from exercising that authority. "That's why the regulator has made its previous directive null and void," Mr Kalam added.

The central bank has launched a pilot framework to enable digital processing of trade documents under documentary collections and letters of credit (LCs), aiming to modernise cross-border trade operations.
The framework will allow electronic submission, transmission, and verification of trade documents across approved international trade corridors, according to a notification issued by the Bangladesh Bank (BB) on Wednesday.Bangladesh Market Analysis

The initiative covers both export and import transactions governed by Uniform Rules for Collections (URC), Uniform Customs and Practice for Documentary Credits (UCP) and their electronic versions (eURC and eUCP).

The central bank officials, however, said the framework introduces the use of Electronic Transferable Records (ETRs) as legally reliable alternatives to paper documents, subject to compliance with applicable standards.

It emphasizes interoperability, technology neutrality, data privacy, and decentralized verification using secure digital mechanisms, they added.

Under the framework, authorised dealer (AD) banks need to seek the BB’s approval to participate in the pilot by specifying trade corridors, counterparties, transaction types, and technology arrangements.

The system will support electronic handling of documents such as invoices, transport documents, and draft.

While electronic processing will be encouraged, AD banks may still require physical documents in jurisdictions where digital records are not legally recognized, the officials said, adding that the framework also mandates strong security features, including encryption, authentication, and audit trails.Newspapers

The pilot will be implemented in phases, with future expansion depending on performance and regulatory assessment, the central bank in its notification.

Bangladesh Bank has capped the maximum charge on merchant payments made through the National Payment Switch Bangladesh (NPSB) at 1%, down from the previous ceiling of 1.5%, aiming to promote digital transactions and reduce costs for small and medium-sized enterprises.

The central bank's Payment Systems Department issued a circular in this regard today (1 July), with immediate effect.Under the new policy, banks and payment service providers will not be allowed to charge merchants more than 1%, including VAT, as the merchant rate for transactions processed through NPSB.
In practical terms, when a merchant accepts a digital payment from a customer, the bank or payment service provider can deduct a maximum fee of 1% from the transaction value.

The revised charge will apply to merchant payments made through point-of-sale terminals, Bangla QR, and e-commerce platforms under the NPSB network, reads the circular.

The 1% cap covers payments made through bank accounts, debit cards, prepaid cards, credit cards, mobile financial services, and payment service providers using Bangla QR.

According to Bangladesh Bank, establishments that provide digital payment acceptance services to merchants may charge less than 1% as part of promotional campaigns to encourage greater use of digital payments.

The central bank also said the measure is intended to accelerate the country's transition towards a cashless economy by making digital payment acceptance more attractive for merchants of all sizes.

Bankers said the previous 1.5% ceiling discouraged many small businesses from accepting digital payments due to the higher transaction cost.

They believe the lower fee cap, combined with a uniform ceiling across different payment methods, including cards, MFS and bank transfers, is expected to increase the volume of digital transactions.

The Bangladesh Bank has decided to liquidate five troubled non-bank financial institutions (NBFIs) after determining that they are no longer financially viable, while granting four others a final three-month opportunity to restore their financial health under strict conditions.

The decision was taken under the Bank Resolution Act, 2026 following a review of Financial Viability Reports on nine distressed NBFIs at a recent board meeting.

The institutions slated for liquidation are People's Leasing and Financial Services Limited, International Leasing and Financial Services Limited, Aviva Finance Company Limited, FAS Finance and Investment Limited, and Far East Finance and Investment Limited.
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The central bank said protecting depositors would be the top priority during the liquidation process. To facilitate repayments, the government and Bangladesh Bank have decided to establish a special fund.

Before any repayments are made, each institution will undergo a mandatory forensic audit by a reputed audit firm to identify those responsible for financial irregularities. Legal action will be taken against individuals found guilty.

According to Bangladesh Bank officials, the five institutions hold around Tk2,700 crore in deposits belonging to about 27,000 depositors. Once administrators are appointed, individual depositors will initially receive up to Tk10 lakh each under the repayment plan.

Bangladesh Bank's latest Financial Stability Report shows the extent of the crisis. As of December last year, FAS Finance's non-performing loan ratio stood at 99.99%, International Leasing's at 99.44%, Far East Finance's at 98.50%, People's Leasing's at nearly 95%, and Aviva Finance's at 93.93%.

Among the five institutions, Aviva Finance was chaired by controversial businessman Saiful Alam, while the other four were controlled by former financier Prashanta Kumar (PK) Halder, who has been accused of masterminding one of Bangladesh's biggest financial scandals.

Meanwhile, Prime Finance and Investment Limited, GSP Finance Company (Bangladesh) Limited, Bangladesh Industrial Finance Company Limited (BIFC) and Premier Leasing and Finance Limited have been given three months to regain financial viability under Section 15 of the Bank Resolution Act.

To avoid liquidation, the institutions must inject fresh capital through sponsor shareholders, sell assets, recover defaulted loans to improve liquidity and meet other conditions set by the central bank.

Bangladesh Bank warned that failure to meet even one of the conditions within the stipulated period would trigger immediate resolution or liquidation proceedings. The four institutions have also been directed to submit monthly progress reports to the central bank's Resolution Department by the seventh day of each month.

The latest action follows notices issued to 20 NBFIs in May last year over high default loans and failure to repay depositors. After assessing their recovery plans, the central bank concluded that nine institutions had failed to present credible turnaround strategies, leading to the latest resolution measures.

The Dhaka stock market rebounded sharply in fiscal year 2025-26, with the benchmark DSEX index jumping 19%, its best yearly performance in years, on the back of sweeping reforms and renewed investor confidence.

The broad-based DSEX index gained 924 points during the fiscal year to close today (30 June) at 5,762 on the final trading session, while the blue-chip DS30 index rose 363 points, or 20%, to 2,178, according to data from the Dhaka Stock Exchange (DSE).

The recovery was also reflected in valuations and trading activity. Total market capitalisation increased by Tk36,421 crore, or 5.49%, to Tk6.98 lakh crore, while daily turnover more than tripled to Tk1,500 crore on the last trading day of FY26 from Tk464 crore a year earlier.

The market ended the fiscal year on a strong note, extending its winning streak to six straight sessions. The DSEX added another 40 points on the final trading day as investors continued accumulating fundamentally strong stocks after the passage of the Finance Bill.
According to EBL Securities, the rally was driven by optimism over the market's near-term outlook and supportive measures in the approved budget, which encouraged broader participation.

Sheltech Brokerage said investor appetite strengthened following market-friendly fiscal reforms, particularly tax incentives tied to stock market investments. Strong buying interest from the opening bell, especially in blue-chip engineering stocks, helped sustain the market's upward momentum throughout the session.

Recovery despite economic headwinds

The market's performance came despite one of the most challenging macroeconomic environments in recent years.

Throughout FY26, investors grappled with contractionary monetary policy, high treasury bond yields, persistent inflation, weak investor confidence, political uncertainty and geopolitical tensions arising from the Middle East conflict.

In its Monetary Policy Statement for July-December 2026, released today, Bangladesh Bank acknowledged these challenges and said the capital market showed encouraging signs of recovery despite tight financial conditions and domestic and global uncertainties.

The central bank said the stock market improved in FY26, marked by higher turnover, increased market capitalisation and renewed investor participation despite the challenging macroeconomic backdrop.

Political transition brings new direction

Market sentiment began improving following the 12-February election, when the BNP-led government assumed office and pledged to rebuild the country's financial markets.

One of its earliest moves was a major leadership overhaul at the Bangladesh Securities and Exchange Commission, appointing veteran corporate executive Masud Khan as chairman.

Speaking after assuming office, he pledged to strengthen market surveillance, improve enforcement, restore transparency and attract foreign investment.

With more than four decades of corporate leadership experience, including serving as Group CEO of Crown Cement and former chief financial officer of LafargeHolcim Bangladesh, Masud Khan said rebuilding investor confidence would remain the regulator's highest priority.

Since taking office, the regulator also withdrew the long-standing floor price mechanism, allowing market forces to determine share prices after years of artificial restrictions.

Budget delivers biggest reform package

A key driver of the market's year-end rally was the FY27 national budget, which unveiled one of the most comprehensive reform packages for the capital market in recent history.

The government cut taxes on dividend income, introduced corporate tax incentives to encourage quality companies to go public and removed the investment ceiling for mutual fund tax rebates.

The reforms also eased listing requirements, offering tax benefits to companies seeking public listings while encouraging greater public shareholding and stronger corporate transparency.

Addressing Parliament during the budget session, Finance Minister Amir Khosru Mahmud Chowdhury said rebuilding investor confidence and restoring a modern financial system had become one of the government's top priorities.

He said the market had suffered from years of poor governance, mismanagement and policy failures, and pledged to shift Bangladesh from a debt-driven financing model to an investment-led economy supported by equity financing and foreign direct investment.

Prime Minister Tarique Rahman also reaffirmed the government's commitment to reviving the market.

"In the past, many people lost their capital due to the stock market crash. There have even been tragic incidents of suicide by those who lost everything, which is deeply painful," he told Parliament.

"We are restructuring the capital market. We believe that under the leadership of our finance minister, the capital market will become vibrant. No one should ever have to lose their capital and everything they own here again."

Central bank eyes larger capital market

Bangladesh Bank has placed the capital market at the centre of its long-term financing strategy.

At a meeting with Chittagong Stock Exchange officials on 29 June, Governor Mostaqur Rahman said a vibrant stock market is essential to complement the banking sector by providing long-term equity financing to businesses.

He unveiled a phased plan to raise market capitalisation by Tk20,000 crore in FY27, Tk25,000 crore in FY28 and Tk30,000 crore in FY29.

Meeting these targets would reduce excessive reliance on bank borrowing and strengthen private sector investment, he said.

The governor also highlighted recent reforms to attract foreign portfolio investment.

Bangladesh Bank has revised the rules governing Non-resident Investors' Taka Accounts (NITA), allowing proceeds from the sale of listed securities to be credited directly to investors' accounts and enabling authorised dealer banks to automatically deduct and deposit capital gains tax.

Stubbornly high inflation is draining consumers' pockets, and businesses are feeling the pain as corporate profits across 17 sectors crashed by 44% in the first quarter of 2026, led by a 144.6% fall in the banking sector.

According to data from Lion City Advisory, aggregate net profits fell to Tk2,764.45 crore in Q1 of 2026, down from Tk4,962.11 crore in the same period last year.

The financial advisory firm compiled financial data from 232 listed companies across 17 sectors, including banks, non-bank financial institutions (NBFIs), manufacturing and services.

Of more than 350 listed companies, 232 have published their financial statements as of 30 June. Companies following the July-June fiscal year reported nine-month earnings, while those following the January-December calendar year disclosed first-quarter results.

Business leaders and analysts said the profit crunch followed a highly sluggish 2025, pushing the corporate sector into a prolonged period of economic stagnation.

Companies are under severe pressure as high inflation, gas and power shortages, and banking sector weaknesses squeeze operations and erode margins, they added.

Banking sector's 144.6% plunge

Leading the downturn, the banking sector suffered a 144.6% plunge in profits, swinging from a Tk1,459.67 crore profit in Q1 2025 to a staggering loss of Tk651.47 crore in Q1 2026.

Of the 30 banks that published financial results, only five reported significant losses. However, losses at these institutions wiped out the gains made by profitable banks.

The five banks – National Bank, IFIC Bank, Islami Bank, Premier Bank, and Rupali Bank – posted combined net losses of Tk2,787.61 crore during the January-March quarter.

The travel and leisure sector recorded the sharpest deterioration, plunging 2,755.5% into losses. The ceramics sector and NBFIs also suffered heavy setbacks, with profits declining by 438% and 107.3%, respectively.

Traditional manufacturing sectors remained under pressure from the economic slowdown. Textile profits dropped 76.3%, while cement earnings declined 41.3%, data showed.

However, some sectors managed to withstand the downturn. Fuel and power emerged as a major growth driver, with profits rising 53.9% to Tk814.45 crore. Telecommunications also posted a 19.7% increase to record the highest sectoral profit of Tk966.63 crore.

The pharmaceutical sector, which has been a consistent performer, also saw profits decline by around 9% year-on-year in the first quarter.

Commenting on the quarterly results, Abdullah Al Faisal, director at Lion City Advisory, said the figures showed that Bangladesh's corporate sector remained under pressure.

"While revenues have remained resilient, profitability has been hit by weak demand, banking sector vulnerabilities, business uncertainty and structural challenges," he said.

"Although aggregate revenue stayed broadly stable, net profits declined sharply, highlighting the difficulties businesses continue to face despite some easing in financing costs."

He said recovery depended on stronger private investment, a healthier banking sector, faster public project implementation and greater macroeconomic stability in the coming quarters.

'Industries under systematic pressure'

Riad Mahmud, president of the Bangladesh Association of Publicly Listed Companies (BAPLC) and managing director of National Polymer Industries, told The Business Standard that the industrial sector had been under systematic pressure since the Covid-19 pandemic.

"Alongside high inflation, the gas and electricity crisis continues. High lending rates have made the industrial sector more vulnerable. It is difficult to run businesses with 12-14% borrowing costs, discouraging entrepreneurs from making new investments," he added.

Mahmud said the government had recognised the industrial sector's crisis and announced an incentive package that could ease working capital shortages if implemented.

"However, it remains only an announcement. Banks have not yet given any final decision on implementing the incentives. Even after receiving letters, they have not responded," he said.

Mohammed Amirul Haque, managing director of Premier Cement Mills, told TBS that the overall business situation in the cement sector remained weak.

"Some large companies are performing well due to their own sales networks and brand reputation, but others have failed to maintain growth," he said.

Cement sector entrepreneurs said the slowdown in government mega projects and annual development activities had created stagnation across the steel and cement industries.

However, Amirul said the new government had taken up several development projects that could improve business prospects in the sector in the coming days.

'Remainder of the year will remain challenging'

Multinational cement manufacturer LafargeHolcim Bangladesh reported Tk112.2 crore in profit for Q1, down 19% from Tk139.1 crore in the same period last year.

The company said rising energy costs and persistent inflation, driven by global disruptions linked to the Middle East crisis, weighed on its bottom line.

It said the rest of the year would remain challenging due to high inflation and energy costs but remained optimistic after implementing cost-efficiency measures and strategic pricing adjustments.

Chief Executive Officer Iqbal Chowdhury said the company remained focused on resilience through innovation and operational efficiency despite ongoing inflationary pressures.

He said specialised products such as Water Protect and Fair Face continued to perform strongly, strengthening the company's market position and customer confidence.

Several factors contributed to weak profitability

Abdullah Al Faisal said the economy was going through a transition following political changes, while uncertainty from the Middle East conflict had weakened business confidence.

"The banking sector also remains vulnerable, with non-performing loans above 32% and distressed loans estimated at around 59% of total loans," he said.

He added that the ongoing Asset Quality Review (AQR) had revealed further weaknesses in banks' balance sheets, including negative CRAR. Although higher interest rates initially increased banks' income, rising bad loans had sharply reduced profitability.

"Performance varied across sectors. Food & Allied companies performed strongly as demand for essential goods remained stable. However, Travel & Leisure suffered the biggest decline due to weaker consumer spending. Engineering companies saw stronger sales because two Eid festivals fell within the quarter, but higher costs limited profit growth," he said.

Faisal said the construction sector remained weak due to slower ADP implementation during the transition period and a slowdown in the real estate market.

Tk75,936cr revenue in Q1

According to the data, companies reported aggregate revenue of Tk75,936.18 crore in Q1 2026, representing a marginal year-on-year decline of 0.5% from Tk76,355.63 crore.

The banking sector emerged as the top revenue generator, earning Tk24,707 crore. It was followed by fuel and power at Tk14,601.74 crore, engineering at Tk11,543 crore, telecommunications at Tk6,414.42 crore, pharmaceuticals and chemicals at Tk6,137 crore, and textiles at Tk4,480.68 crore.

Textile profits shrink 76%

As of 20 June, 34 of 58 listed textile firms published quarterly results, reporting combined profits of Tk45 crore, down from Tk192.50 crore in the same period last fiscal year.

Half of these firms, or 17 companies, reported losses, with some continuing to remain in the red and others falling into losses for the first time.

Earlier, Rakibul Alam Chowdhury, former vice-president of BGMEA, told TBS, "We have experienced negative growth for most of the past 10 months. April showed some improvement, but the overall trend remains negative."

He said global conflicts, persistent inflation and higher retail prices had weakened consumer purchasing power in major markets, reducing sales and shrinking apparel orders.

"When major competitors receive policy support and incentives to cushion external shocks, our exporters face growing pressure without similar assistance. This has affected competitiveness and order flows," he added.

The United States is working to reduce its trade imbalance with Bangladesh while strengthening bilateral trade and investment, US Commercial Counsellor Paul Frost said today (1 July), as business leaders in Chattogram called for greater American investment in the city's planned Free Trade Zone and strategic infrastructure projects.

Speaking at a meeting with leaders of the Chittagong Chamber of Commerce and Industry (CCCI) at the World Trade Centre in Chattogram, Frost said the US embassy's priority is to promote business and investment between the two countries by connecting American and Bangladeshi businesses, according to a press release.

"The objective of today's discussion is to promote trade and investment between the United States and Bangladesh, establish business-to-business connections and better understand the expectations of the business community," he said.

Frost encouraged Chattogram's business community to work jointly with the American Chamber of Commerce in Bangladesh to strengthen commercial engagement with US companies.

He also said the US government is working with the Bangladesh government and the Bangladesh Investment Development Authority (Bida) to facilitate investment, adding that improving the ease of doing business remains critical to attracting foreign investors.

CCCI President Mohammad Amirul Haque said the US is Bangladesh's largest export market for ready-made garments and stressed that the time is right to deepen bilateral economic relations.

He invited US companies to invest in Bangladesh's economic transformation projects, including transport corridors, expressways, MRT systems, ports and other infrastructure.

Highlighting Chattogram's strategic location, Amirul urged US investors to explore opportunities in the proposed Bay Terminal, Matarbari Deep Sea Port and Sonadia Deep Sea Port projects.

He also called on US businesses to invest in the government's planned Free Trade Zone in Chattogram, saying investors would be able to operate with a single trade licence under a simplified regulatory framework.

"Bangladesh is not seeking charity. We want a strong economic partnership based on mutual respect and shared interests where both countries benefit," he said.

US Deputy Political and Economic Counsellor David Moo said Washington is working with Bangladesh to improve the business environment and remove trade barriers.

"There are already many American companies operating in Bangladesh, while others are interested in entering the market. Removing business obstacles will help expand trade and commercial engagement between the two countries," he said.

Other speakers noted that US machinery and technology enjoy a strong reputation in Bangladesh's manufacturing sector and called for greater American participation in local business summits.

They also urged US investment in Bangladesh's agriculture sector, bonded warehouse facilities, cotton and man-made fibre industries.

Business leaders further called for easier visa and passport services for Bangladeshi students and Bangladeshi-origin US citizens, establishment of a US consular office in Chattogram, direct Dhaka-New York flights, and US investment in the proposed Dhaka-Chattogram Expressway.

Bangladesh Bank (BB) has outlined a long-term roadmap to tackle non-performing loans. The plan centres on stronger supervision, better governance and quicker recovery of distressed assets.

"The level of non-performing loans (NPLs) remains a key focus area for the banking sector, affecting bank profitability, capital adequacy ratios, liquidity distribution, and the transmission efficiency of monetary policy," the central bank said in its latest Monetary Policy Statement (MPS) for H1FY27 published yesterday (30 June).

At the end of March this year, total NPLs in the banking sector stood at Tk5,88,704 crore, accounting for 32.26% of the total Tk18,24,668 crore in disbursed loans.

Bangladesh Bank projects 6.1% GDP growth for FY27, below govt's 6.5% target
Announcing the MPS, BB Governor Mostaqur Rahman said, "The central bank has taken an initiative to reduce non-performing loans within the next 18 months. As part of this, special opportunities are being provided for repaying bad loans under the Exit Policy, which has been effective in countries like Ukraine and Türkiye."

The MPS report sets out a seven-point long-term roadmap for NPL management based on structural reforms:

First, the central bank will strengthen Risk-Based Supervision (RBS) and execute bank-specific Asset Quality Reviews (AQRs), with a primary focus on institutions showing specific governance or concentration risks.
Second, capital restoration and provisioning plans will be linked directly to asset recovery metrics, dividend restrictions, and supervisory actions.
Third, loan restructuring frameworks will be reserved for viable enterprises, while non-compliant borrowers will face appropriate legal and regulatory measures.
Fourth, asset recovery for large exposures will be accelerated by establishing specialized internal recovery units, strengthening institutional legal departments, fast-tracking Artha Rin Adalat (Money Loan Court) proceedings, and optimising collateral enforcement frameworks.
Fifth, the central bank is operationalising a structured Emergency Liquidity Assistance (ELA) framework to ensure liquidity support is distinct from capital restructuring.
Sixth, the implementation of the Bank Resolution Act 2026 and the Deposit Protection Act 2026 will provide tools to manage weak institutions, protect retail depositors, and mitigate moral hazard.
Finally, BB will support the operationalisation of the ECL framework by enhancing data infrastructure and credit risk modeling capabilities to identify changes in credit quality early.
Meanwhile, the MPS statement added that during FY26, the central bank introduced updates to its regulatory and supervisory frameworks to manage asset quality.

Regulatory guidelines were updated to allow the write-off of bad debts with limited recovery prospects to improve balance sheet clarity.

Stressed borrower frameworks were adjusted to permit the restructuring of classified portfolios for up to 10 years, including a grace period of up to two years, with specific support facilities extended through June this year.

In December 2025, updated loan classification and provisioning directives were issued to strengthen credit discipline.

To support credit flow to employment-intensive sectors, BB permitted lower provisioning ratios on standard and Special Mention Accounts within agriculture and CMSMEs through December 2026.

The report also underscored the central bank's medium-term strategy to replace the existing rules-based provisioning methodology with the Expected Credit Loss (ECL) framework under International Financial Reporting Standard (IFRS) 9, with full implementation expected in 2027.

US President Donald Trump recorded around $1.2 billion in income from his family’s cryptocurrency activities during his first year back in office, according to financial disclosures released on Tuesday.

According to the 927-page document released Tuesday by the US Office of Government Ethics, Trump received nearly $550 million from his ties to the startup World Liberty Financial in 2025.

World Liberty Financial (WLF) was co-founded in September 2024 by Trump’s sons and the son of Trump’s Middle East special envoy Steve Witkoff.

The filings also mention $635 million in royalties received under a licensing agreement related to the $TRUMP cryptocurrency, launched just hours before the president’s inauguration in January 2025.

The president’s crypto activities are the main reason for the near tripling of his personal fortune, which rose from $2.3 billion to $6.5 billion between 2024 and 2026, according to Forbes.

The former real estate developer is regularly accused of conflicts of interest, in particular for having invested in the cryptocurrency industry while as president taking several measures to deregulate the sector, causing asset prices to soar.

The White House rejected any ethical concerns.

“Neither the President nor his family has ever engaged -- or will ever engage -- in conflicts of interest,” Principal Deputy Press Secretary Anna Kelly said in a statement to AFP.

Kelly said Trump had “proudly made the United States the crypto capital of the world.”

“All actions by President Trump and his administration are taken in the best interest of the American people -- and any so-called ‘reporters’ pushing otherwise are recycling the same, tired, false narrative that Democrats and the legacy media have been pushing for a decade,” Kelly added.

A 1978 law requires the president and vice president of the United States to declare their income as well as their assets.

First Lady Melania Trump’s income is also set out in her husband’s financial disclosure.

It includes more than $10 million for an Amazon documentary about her, and more than $500,000 for her book “Melania.”

The disclosures make several mentions of World Liberty Financial, which issued its own cryptocurrency, WLFI, whose initial sale brought in $550 million.

Since becoming tradable in September 2025, its value has plummeted from 46 cents per unit to its current price of 6 cents.

Trump and his three sons also obtained, via an intermediary company, DT Marks Defi, an additional 22.5 billion WLFI, currently worth around $1.3 billion.

In April 2025, WLF also marketed its stablecoin -- a digital currency whose value is pegged to a traditional currency, in this case the dollar.

Beyond the income derived from WLF and its cryptocurrency, Trump has also earned several million dollars from shares in various publicly listed companies active in cryptocurrencies, such as the Coinbase exchange platform.

There are also earnings from Trump-branded goods, ranging from clothing to bumper stickers -- and more than $208,000 from bibles sold in partnership with country singer Lee Greenwood.

The president’s assets are held in a trust managed by his son, Donald Trump Jr.
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But its bylaws stipulate that the entity can be dissolved at any time, which means the billionaire could regain control of it as soon as his second term ends in 2029.

Vice President JD Vance meanwhile also saw significant earnings since becoming Trump’s deputy. He reported royalties of between $1 million and $5 million from his 2016 memoir “Hillbilly Elegy.”

Remittance inflows hit more than $35.5 billion, a new high, in the just-concluded 2025-26 fiscal year, thanks to Bangladeshis abroad who sent money back home to their families.

Overall remittance inflows grew 17.30 percent year-on-year from $30.3 billion recorded in the previous fiscal year, helping the country better manage its external accounts amid declining exports, according to provisional data from the Bangladesh Bank (BB).

The Bangladesh Merchant Bankers Association (BMBA) has welcomed the capital market-friendly measures included in the national budget for fiscal year 2026-27, saying the initiatives are expected to restore investor confidence, attract fresh investment and support the long-term development of the country's capital market.Bangladesh Market Analysis

In a statement on Wednesday, the association thanked the government for introducing a series of fiscal incentives aimed at strengthening the capital market and creating a more investment-friendly environment.

The BMBA said the budget's "timely and pragmatic" measures would help rebuild investor confidence, deepen the market, enhance its stability and contribute to Bangladesh's long-term economic growth.

The association particularly welcomed the extension of tax incentives for initial public offerings (IPOs), tax benefits for zero-coupon bonds, dividend-related tax incentives, supportive measures for the banking sector and the rationalisation of the tax structure for mutual funds.

According to the BMBA, these policy initiatives are expected to encourage more companies to raise funds through the capital market, promote the development of new investment instruments and improve overall market efficiency.

The association also reaffirmed its commitment to working closely with the government, regulators and other stakeholders to support ongoing reforms, modernise the capital market and help build a sustainable, investment-friendly financial ecosystem.Food Assistance Programs

BMBA Secretary General Sumit Poddar thanked the government and policymakers for incorporating capital market-focused measures into the budget and expressed hope that their effective implementation would accelerate the market's recovery and sustainable growth.

Parliament passed the FY2026-27 budget on Tuesday, while the Finance Bill 2026 was approved a day earlier.

The Parliament on Tuesday passed a Tk 9.38 trillion national budget for 2026-27 fiscal year (FY27), setting targets to accelerate economic growth to 6.5 per cent and bring inflation down to 7.5 per cent after prolonged price pressures eroded living standards for much of the population.
The budget, the first presented by Finance Minister Amir Khosru Mahmud Chowdhury, is 19 per cent larger than the Tk 7,90 trillion budget for the current fiscal year, as per a UNB report.Economic Trend Analysis

The fiscal deficit has been projected at Tk 2.43 trillion, equivalent to 3.6 per cent of the country's gross domestic product (GDP), while the overall budget size represents 13.7 per cent of the projected GDP for FY27.

As part of the government's economic roadmap, the finance minister unveiled a "3R Strategy" aimed at reviving the economy and supporting Bangladesh's ambition of becoming a $1.0 trillion economy.

The strategy comprises Recovery and Stabilisation, Restoration, and Reconstruction for Acceleration, and will be implemented in three phases over a period of one to five years.

Key features of the budget include a revenue collection target of Tk 6.95 trillion, of which the National Board of Revenue (NBR) is expected to collect Tk 6.04 trillion.

To facilitate implementation of the budget, Finance Minister Amir Khosru Mahmud Chowdhury moved the Appropriation Bill, 2026, seeking authorisation for government expenditure amounting to Tk 15.15 trillion. The bill was passed by voice vote.

Earlier on Monday, Parliament passed the Finance Bill, 2026, with several significant amendments, including raising the tax-free income threshold and abolishing the provision requiring disclosure of investments.Personal Finance Guide

Before the passage of the Appropriation Bill, ministers concerned presented justifications for expenditure under their respective ministries through 59 demands for grants covering both development and non-development spending.

The House also rejected, by voice vote, 1,343 cut motions submitted by opposition lawmakers against the 59 demands for grants.

A total of 43 MPs from Jamaat, the National Citizen Party (NCP) and independent members moved the cut motions and participated in discussions on 36 ministries and divisions.

The 36 ministries, divisions and offices included in the opposition's list for cut motions are: the Prime Minister's Office, Cabinet Division, Ministry of Public Administration, Bangladesh Public Service Commission Secretariat, Finance Division, Office of the Comptroller and Auditor General of Bangladesh, Internal Resources Division, Financial Institutions Division, Economic Relations Division, Planning Division, Implementation Monitoring and Evaluation Division (IMED), Ministry of Commerce, Ministry of Foreign Affairs, Law and Justice Division, Ministry of Home Affairs, Ministry of Primary and Mass Education, Secondary and Higher Education Division, Ministry of Science and Technology.

Besides, Health Services Division, Information and Communication Technology Division, Ministry of Social Welfare, Ministry of Women and Children Affairs, Ministry of Labour and Employment, Ministry of Housing and Public Works, Ministry of Information and Broadcasting, Ministry of Youth and Sports, Ministry of Industries, Ministry of Agriculture, Ministry of Environment, Forest and Climate Change, Ministry of Land, Ministry of Water Resources, Road Transport and Highways Division, Ministry of Railways, Ministry of Civil Aviation and Tourism, Posts and Telecommunications Division, and the Anti-Corruption Commission.

Upon the request of Opposition Leader Dr Shafiqur Rahman, the Speaker expedited the passage of the demands for grants by imposing the guillotine.Bangladesh Market Analysis

Opposition and independent MPs were present in the House when the Appropriation Bill was passed and did not object to its adoption.

Bangladesh Bank’s latest Monetary Policy Statement (MPS) leaves the policy rate unchanged at 10 percent, reaffirming its “contractionary” stance to bring inflation under control. The decision comes after nearly two years of monetary tightening, during which private sector credit growth slowed to around 5 percent in May, one of the lowest rates in decades.

Yet inflation has remained stubbornly high.

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This apparent disconnect has fuelled a growing argument among business leaders and even some economists: if inflation has remained close to double digits despite a collapse in private credit growth, doesn’t that prove contractionary monetary policy has failed?

It is a legitimate question. But it points to the wrong conclusion.

The problem is not the stance of monetary policy but the weakening of the transmission mechanism through which it influences market interest rates, savings and inflation expectations. The debate should therefore move beyond whether policy is too tight or too loose. The more important question is whether Bangladesh Bank’s policy instruments reinforce or dilute the transmission of that stance.

Viewed individually, each measure can be justified. Together, however, they create an increasingly inconsistent policy framework.

One instrument seeks to restrain aggregate demand through high interest rates. Another cushions borrowing costs for selected sectors through interest subsidies and targeted refinancing.

A third limits banks’ ability to adjust interest rates in response to market conditions. Together, they pull monetary policy in different directions.

WHY HASN’T INFLATION FALLEN FASTER?

Monetary policy affects inflation through several channels. Slower credit growth is only one of them. Changes in the policy rate influence lending and deposit rates, household savings, investment decisions, exchange-rate expectations and, ultimately, inflation expectations. Only when these channels work together does inflation gradually moderate.

Bangladesh’s recent experience illustrates this well. Credit growth has slowed sharply despite abundant liquidity. According to the MPS, banks have increasingly preferred investing in government securities to extending private credit because of elevated public borrowing and heightened credit risks. Meanwhile, real deposit rates have remained negative, and lending and deposit rates have adjusted only partially to the policy stance.

Inflation has reflected not only domestic demand pressures but also exchange-rate depreciation, imported commodity prices, food supply shocks and administered price adjustments -- factors monetary policy alone cannot fully offset. That helps explain why inflation has proved more persistent than the decline in private credit growth alone would suggest.

This distinction matters because Bangladesh Bank itself acknowledges that inflation reflects structural and supply-side factors beyond the reach of monetary policy alone. The challenge, therefore, is not maintaining a restrictive stance but ensuring that other policy instruments reinforce rather than dilute its transmission. Bangladesh’s experience suggests that monetary tightening has operated more through the quantity of credit than through market interest rates -- a pattern inconsistent with a well-functioning monetary transmission mechanism.

Weak inflation outcomes do not demonstrate that contractionary monetary policy is ineffective. They suggest instead that the transmission mechanism has remained impaired. The appropriate response is therefore not necessarily to abandon monetary tightening but to strengthen the channels through which it reaches the broader economy.

Some of Bangladesh Bank’s recent measures, though individually understandable, may nevertheless weaken those channels.

INTEREST RATES CONSTRAINED FROM BOTH SIDES

The latest interest-rate data illustrate why monetary transmission remains constrained. In May, the weighted average lending rate stood at 11.92 percent -- 12.12 percent for large industries and 12.58 percent for SMEs. The weighted average deposit rate was only 6.22 percent, although fixed deposits -- the rates most relevant for attracting new savings -- earned around 9.2 to 9.5 percent.

The newly introduced 4 per cent intermediation spread cap risks reinforcing this pattern. At prevailing lending rates, it effectively limits banks’ ability to raise deposit rates while preserving their margins. In principle, banks could increase both lending and deposit rates while maintaining the prescribed spread. In practice, however, lending rates much above the low-teens have proved politically difficult to sustain. The earlier 9 percent lending-rate ceiling, the compression of margins under the Six-Month Average Rate on Treasury bills (SMART) framework, and now the spread cap reflect a recurring pattern of administrative intervention whenever borrowing costs rise sharply.

The May data suggest that the weighted average intermediation spread was about 5.7 percentage points, well above the new ceiling. Banks can comply in only three ways: lower lending rates, raise deposit rates, or do both. None is costless. Lower lending rates dilute the intended tightening of monetary policy. Higher deposit rates, without corresponding flexibility on lending rates, reduce banks’ ability to price credit according to risk and operating costs. That matters particularly for SMEs, whose loans are relatively expensive to originate and monitor. A uniform spread cap therefore risks encouraging banks to shift lending towards larger, lower-cost corporate borrowers while tightening credit conditions for smaller firms.

THE CHALLENGE OF POLICY COHERENCE

The inconsistency becomes clearer when the spread cap is viewed alongside the Tk 60,000 crore financial support package.

A restrictive policy rate is intended to moderate aggregate demand by raising the cost of credit. The support package, by contrast, lowers the effective cost of borrowing for selected sectors through interest subsidies and targeted refinancing. The Tk 20,000 crore corporate facility will be financed from banks’ own resources, with the government subsidising part of the interest cost, while the agriculture and SME components will receive refinancing support. Though they operate differently, both seek to maintain credit to priority sectors despite a high policy rate.

Each measure addresses a legitimate concern. Together, however, they send mixed signals. The policy rate tightens financial conditions, the support package cushions selected borrowers, and the spread cap constrains credit pricing. The issue is not any individual instrument but the coherence of the overall policy mix. Monetary policy is most effective when its instruments reinforce rather than offset one another.

Ultimately, monetary policy depends not simply on the policy rate but on confidence that changes in it will influence savings, lending and inflation expectations. Bangladesh Bank would argue, with some justification, that the spread cap protects productive investment during a difficult period. That concern is understandable, but there is an unavoidable trade-off. Administrative measures that limit the adjustment of interest rates may provide short-term relief for borrowers, but they also weaken risk-based pricing and reduce the transmission of monetary policy.

The latest MPS should therefore be judged not only by its decision to leave the policy rate at 10 percent, but also by whether the broader policy framework is internally coherent. A restrictive policy rate, a financial support package and a binding spread cap do not naturally reinforce one another; they pull monetary policy in different directions.

Bangladesh’s monetary debate has become polarised between those who believe higher interest rates have failed and those who insist tighter policy alone will tame inflation. The debate should therefore move beyond whether policy is too tight or too loose. The more fundamental question is whether the surrounding policy framework allows the chosen stance to influence savings, lending and inflation expectations. Restoring that coherence may matter more than any single adjustment to the policy rate.

In 2021, banks earned most of their income the traditional way -- by lending. Four years later, lending, the core business of banking, became a relatively minor source of earnings, according to their financial reports.

As private sector credit growth slowed and non-performing loans (NPLs) mounted, net interest income of banks came under increasing pressure. At the same time, sluggish imports also weighed on commission income from trade-related services such as opening letters of credit (LCs).
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To survive and, for many, to thrive, commercial banks, whose DNA is to create credit and take calculated risks by backing businesses, instead took shelter in the safety of Treasury bills, lured by their higher returns.

On paper, banks now appear highly profitable because of those elevated Treasury yields. They are earning strong returns without taking credit risk.

But economists and bankers say the windfall comes with two risks.

If banks continue to favour government securities over lending, private investment could weaken further, slowing the country’s economic recovery. And if Treasury yields begin to fall, banks will simply fail to maintain their current level of earnings.

INCOME PATTERN SHIFTS SWIFTLY

In 2021, the country’s 52 major banks generated a combined Tk 40,793 crore in income.

Interest income accounted for 47 percent of the total, while investment income contributed 34 percent. The remaining 19 percent came from commission income, according to financial reports of the commercial lenders.

In 2022, investment income increased but remained below interest income. The overall pattern changed little in 2023.

The balance shifted swiftly in 2024, when investment income overtook interest income to become the largest source of banks’ earnings.

By 2025, net interest income accounted for just 6.8 percent of total income, while investment income surged to 73 percent. Commission income contributed around 20 percent.

Syed Mahbubur Rahman, managing director and chief executive officer of Mutual Trust Bank, said this is a matter of serious concern.

He said foreign investors have already warned that banks could face significant difficulties if Treasury bond yields start to decline.

Explaining the shift in banks’ income sources, he said the cost of deposits has risen alongside overall operating expenses, narrowing lending margins.

“The biggest issue is that NPLs [non-performing loans] in the banking sector have risen sharply. As a result, banks are not receiving interest income from a large portion of their loans, yet they still have to pay interest to depositors.”

“Consequently, net interest income has declined. Ideally, a bank’s primary source of income should be its net interest income, as lending is its core business,” he added.

The CEO said the growing volume of bad loans has handicapped banks. At the same time, credit growth has slowed, prompting commercial lenders to increase their investments in Treasury bonds.

“Commission income has also declined because the country’s trade volume has weakened. In addition, the margins that banks previously earned from foreign exchange transactions have largely disappeared.”

“For the long-term sustainability of banks, their core income remains critically important. However, given the current state of private sector investment, sluggish credit growth, and the fact that NPLs have yet to improve,” he said, adding, “I do not expect the situation to improve in the near future.”
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CONCERNS OVER INVESTMENT, GROWTH

Another notable trend is the steady decline in banks’ net interest income over the past three years. Commission income also fell by around 8 percent year-on-year in 2025.

Investment income, however, has risen gradually over the past five years.

Kazi Monirul Islam, chief executive officer of Shanta Asset Management, said banks had a clear incentive to invest in Treasury securities because they offered attractive yields while lending became significantly riskier.

“That is why investment income has increased,” he said.

Monirul said banks naturally gravitate towards areas where they can earn higher returns with lower risk.

However, when banks choose government securities over extending loans, the wider economy suffers. If the trend continues, it will constrain private investment and slow the country’s economic recovery, he added.

As long as Treasury yields remain high, banks are likely to continue posting strong earnings. Once yields begin to fall, banks may initially benefit from capital gains on their Treasury portfolios, said the CEO of the asset management firm.

“Over time, however, their overall income is also likely to decline,” he added.

He believes that unless economic growth strengthens, banks will struggle to redirect the large volume of funds currently invested in government securities into productive private sector lending.

On the decline in commission income, Monirul said subdued imports and weaker export earnings had reduced trade-related fees and commissions.

Banks that operate brokerage houses also earned less commission because of weak trading activity in the stock market. However, he expects commission income to improve this year.

According to data from the Dhaka Stock Exchange (DSE), average daily turnover stood at Tk 1,474 crore in 2021. It fell to Tk 960 crore in 2022 and Tk 578 crore in 2023.

Turnover declined further to Tk 566 crore in 2024 before plunging to Tk 51 crore in 2025.

Oil prices fell more than 1 percent on Wednesday as talks between Iran and the US aimed at reaching a final agreement to end their war continued and the market awaited data from the US regarding stock draws. Brent futures fell $1.14, or 1.6 percent, to $71.81 a barrel at 0859 GMT, while US West Texas Intermediate crude was down $1.11, or 1.6 percent, to $68.39 a barrel.

“Stuttering talks between the US and Iran are raising concerns of fresh supply disruptions. On the other hand, investors are confident that whatever issues are hindering negotiations will be resolved soon,” said PVM Associates analyst Tamas Varga.

“All in all, the downside bias is intact, hard data in the form of stock depletion or the re-closure of the strait might alter the prevailing mood.” Indirect technical talks between the United States and Iran are under way in Doha with Qatar and Pakistan serving as mediators, a source with direct knowledge of the discussions told Reuters on Wednesday. US President Donald Trump’s son-in-law Jared Kushner and envoy Steve Witkoff arrived in Doha for what the White House described as “high level” talks on Tuesday. But Iran and host Qatar said they would meet with mediators rather than the Iranians themselves.

Brent fell by around $45 a barrel in the second quarter of this year, its largest quarterly loss since the global financial crisis in 2008. US crude futures, meanwhile, fell by around $31, their largest quarterly loss since 2020, when the COVID-19 pandemic crushed global oil demand. The declines followed progress toward ending the Middle East conflict, after sharp gains in March triggered by the outbreak in hostilities.

Following five straight monthly increases, analysts have cut their 2026 oil price forecasts for the first time since the Iran war began, as the reopening of the Strait of Hormuz eased concerns over prolonged supply disruptions, a Reuters poll showed. Tanker traffic through the critical waterway has started to recover, with US Vice President JD Vance claiming that oil flows through the strait had been restored to pre-war levels.

Meanwhile, markets are awaiting official US oil stock data from the Energy Information Administration, which will be released at 10:30 a.m. EDT (1430 GMT) on Wednesday. US crude oil inventories fell again last week, market sources said, citing data from the American Petroleum Institute released on Tuesday.a

Listed engineering company Dominage Steel Building Systems Limited has applied to the Bangladesh Securities and Exchange Commission (BSEC) for approval to transfer 30.78 million shares, representing around 30% of the company's total shares, from its sponsor-directors to Akij Resources Limited, Sheikh Jasim Uddin, and Faria Hossain.

The proposed transfer will be executed through an off-market negotiated transaction under CDBL Bye-Laws 11.6 via a matched transaction.

The company's board of directors approved the proposed share sale at its meeting held on 25 April. However, the transaction remains subject to BSEC's final approval. Once the regulatory clearance is obtained and the transfer is completed, a new board of directors representing the incoming investors is expected to assume control of the company's management and operations.
Following the application, BSEC sought a series of documents and information from the company before considering approval of the share transfer.

The regulator requested a tripartite agreement among the buyers, sellers and the financing bank or non-bank financial institution (NBFI), a No Objection Certificate (NOC) from the relevant bank or NBFI, an asset valuation report, a business plan, a plan to protect the interests of minority and general shareholders, a declaration on whether the shares are pledged, particulars of the directors, and any other relevant documents.

Market analysts believe the proposed acquisition could mark a significant turning point for Dominage Steel, which has been struggling with financial and operational challenges in recent years. They say the entry of Akij Resources, a concern of the Akij Group with an established presence in the steel industry, could inject fresh capital, industrial expertise and stronger management into the company, helping revive production and improve operational efficiency.

Earlier, Raihan Kabir, Deputy Chief Financial Officer of Akij Resources, told The Business Standard that although the company viewed the potential acquisition positively, the proposal was still at a preliminary stage and was undergoing due diligence along with financial and legal assessments before any final decision.

Dominage Steel's financial performance remains weak. During the July-December period of FY2025-26, the company's revenue fell 54% to Tk5.75 crore, while it incurred a net loss of Tk0.94 crore. Its loss per share (LPS) stood at Tk0.09 during the period.

A Dhaka Stock Exchange (DSE) inspection conducted in late 2025 found the company's Narsingdi factory closed, although Dominage Steel said its Savar unit remained operational. The company maintained that, as an engineering and construction firm, it does not require continuous production at all factories because much of its work is project-based and carried out at construction sites.

Despite its weak fundamentals, speculation surrounding the potential acquisition has fuelled a sharp rally in the company's stock. Since February 2026, Dominage Steel's share price has surged by about 226%, reaching Tk82.50 at its peak. On Tuesday, the stock closed at Tk79.70 on the Dhaka Stock Exchange.

Listed on the stock market in 2020, Dominage Steel most recently declared only a 0.35% cash dividend for the FY2024-25.

The Bangladesh Securities and Exchange Commission (BSEC) has restored the authority of the country's two stock exchanges to independently set circuit breakers and other key trading parameters, reversing a 2021 directive that centralised those powers under the regulator.

The decision was taken at an emergency commission meeting chaired by BSEC Chairman Masud Khan today (1 July).

Under the new directive, the Dhaka Stock Exchange (DSE) and the Chittagong Stock Exchange (CSE) will be able to independently determine trading control measures, including circuit breakers, tick size, market lot, block size, order size, closing price calculations, market protection percentages and index calculation frequency.The exchanges must immediately notify the BSEC of any changes and ensure the information is properly communicated to market participants.

The commission also repealed its 17 June 2021 order that had transferred these operational powers from the bourses to the regulator.

BSEC spokesperson Abul Kalam told TBS that the decision is part of the commission's broader deregulation initiative.

He said the regulator had previously exercised these powers through various directives despite the exchanges originally having the authority. With the latest decision, the BSEC will no longer intervene in setting circuit breakers and other trading parameters.

To ensure a smooth transition, he said, the existing trading limits will remain in force until the exchanges formally approve and implement new rules.

Dhaka Stock Exchange Managing Director Nuzhat Anwar confirmed that no immediate changes would be made to the current circuit breaker system.

She said any future revisions would first be reviewed and approved by the DSE board before being implemented. As a result, trading today will continue under the existing price movement limits to maintain market stability.

Under the current framework, securities priced up to Tk200 can move by up to 10% a day, while those priced between Tk200 and Tk500 have an 8.75% limit. The allowable price movement gradually declines with higher-priced shares, reaching 3.75% for securities trading above Tk5,000.

Separately, the BSEC decided to relax dividend distribution requirements for open-ended mutual funds, allowing them to retain and reinvest earnings instead of distributing them as dividends if trustees approve proposals from asset managers in the interests of investors and the market.

At present, open-ended mutual funds are required to distribute at least 70% of profits under fixed-income schemes, 30% under growth schemes and 50% under other schemes.

Abul Kalam said the move would benefit investors because cash dividends are subject to a 15% tax, whereas gains realised through unit redemption are not. Retaining earnings would also increase the asset base of the funds, potentially generating higher long-term returns for investors.

The Dhaka Chamber of Commerce and Industry (DCCI) has expressed concern that the country's tight monetary policy could undermine the intended benefits of the growth-oriented national budget aimed at boosting the private sector.

In a statement issued today (30 June), DCCI President Taskin Ahmed said the decision to keep the policy interest rate unchanged at 10% despite private sector credit growth falling to 5% was "deeply disappointing" for businesses.

He said Bangladesh has pursued a contractionary monetary policy for the past four years, yet inflation has failed to ease as expected. Instead, inflation rose to 9.42% in May this year, the highest among South Asian countries.

According to the DCCI, the newly approved Tk9.38 lakh crore national budget includes a range of tax and duty incentives to encourage business expansion, investment and industrialisation. However, it said the central bank's monetary policy does not reflect the same pro-growth approach, indicating a clear mismatch between fiscal and monetary policies.

The chamber said maintaining a high policy rate has limited the scope for reducing borrowing costs, which could negatively affect business activities and investment.

However, the DCCI welcomed the Bangladesh Bank's Tk60,000 crore stimulus fund, stressing that lessons from past experiences should be used to ensure its transparent and effective implementation.

It urged the central bank to ensure that crisis-hit and struggling cottage, micro, small and medium enterprises (CMSMEs), export-oriented industries and other productive businesses can access the fund quickly and on easy terms.

The chamber also called for prioritising support for both closed industrial units that could be revived and businesses currently at risk of shutting down.

The DCCI further expressed concern over the government's increasing reliance on bank borrowing, noting that public sector credit growth has reached nearly 26%, well above the target.

It warned that the government's borrowing is absorbing a significant share of the banking sector's limited liquidity, potentially crowding out private sector access to credit.

The chamber said that regardless of how attractive the tax incentives announced in the budget may be, their expected benefits would be difficult to realise without adequate and affordable financing.

It therefore called for stronger coordination and greater policy alignment between monetary and fiscal authorities to address current economic challenges and support sustainable private sector-led growth.