News & Events

Research Workshop on Augmenting Remittances through Banking Channel: Bangladesh Context held in BIBM

Press Release

Date: 09-11-2017   

A day long research workshop was held at the Bangladesh Institute of Bank Management (BIBM) on November 09, 2017 in its auditorium. A paper titled " Augmenting Remittances through Banking Channel: Bangladesh Context " was presented in the workshop by Dr. Shah Md. Ahsan Habib, Professor  & Director (training) of BIBM. Other members of the research workshop team are Md. Nehal Ahmed, Professor, BIBM;  Dr. Mohammad Tazul Islam Associate Professor, BIBM; Md. Shafiul Alam, Joint Director, Bangladesh Bank and  Muhammad Golam Rabbani, Senior Vice President, Islami Bank Bangladesh Limited.

The study identifies the problem areas as well as success factors in augmenting remittances through banking channel. A good number of participant’s senior bank executives, academicians, media representatives, faculty members, officers of BIBM participated in the review workshop. BIBM Director General Toufic Ahmad Choudhury Chaired the review workshop.

Shitangshu Kumar Sur Chowdhury Deputy Governor, Bangladesh Bank was present in the research workshop as the chief guest. He said, GDP is primarily attributable to higher inflow of workers’ remittances averaging more than 8% during the Sixth Plan period. Again, in the Seventh Five Year Plan it is targeted to ensure consistency in terms of receiving remittance as percentage of GDP by 8%. As per government statistics, nearly 2.8 million workers have migrated in last 5 years. In 2016 the inflow of remittance was 13.6 billion.
He also said, In Bangladesh, remittances declined by an estimated 11.1 percent in 2016 in the face of lower oil prices and fiscal tightening in the GCC countries. Among other reasons, use of Illegal channel by the expatriates is doing harm to our country. Through awareness program, we hope Non-Resident Bangladeshis will come forward to know the importance of their money to be channelized through banking channel.
There is always a high demand for loans by the NRBs. Bangladesh Bank recently allowed loan facility up to 75% of the Bond holdings of NRBs (Wage Earners Development Bond, US Dollar Investment Bond, and US Dollar Premium Bond). Moreover, housing loan for NRBs is also available from commercial banks he added.
A study of BIBM blamed Hundi through mobile financial services including bKash, Rocket, mCash and UCash for decreasing remittance through banking channel. The study, conducted by a six-member team, identified distance of bank branches, delay in receiving money, misconduct by bankers, submission of various documents, weekly holidays of banks and illegal immigrants as the reasons for increasing remittance inflow through mobile Hundi.

BB former executive director Yasin Ali said that national economy was being hindered due to remittance inflow through illegal channels. He suggested using mobile banking facilities for
remittance inflow saying that the area of mobile banking expanded many fold in last five years.
Helal Ahmed Chowdhury, former managing director of Pubali Bank, suggested bankers to be courteous with bank customers.


Written by Manager

Monday 13th November 2017