Bangladesh Bank Annual Report (July 2016-June 2017)
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Annual Report 2016-2017 Bangladesh Bank Annual Report (July 2016-June 2017) BANGLADESH BANK (The Central Bank of Bangladesh) ii Letter of Transmittal BANGLADESH BANK Dhaka 26 December 2017 The Secretary Financial Institutions Division Ministry of Finance Government of the People’s Republic of Bangladesh Dhaka. Dear Sir, In terms of Article 40 (2) of the Bangladesh Bank Order, 1972 (P. O Number 127) I have the honour to submit to the Government of the People’s Republic of Bangladesh the Annual Report of the Bangladesh Bank for the fi nancial year 2016-2017. Audited Accounts of the Bank for the fi nancial year was forwarded earlier on 30 August 2017. Yours faithfully, (Fazle Kabir) Governor iv Board of Directors Mr. Fazle Kabir Chairman Mr. Hedayetullah Al Mamoon* Director Mr. Md. Nojibur Rahman Director Mr. Md. Eunusur Rahman Director Dr. Mrs. Rushidan Islam Rahman Director Dr. Jamaluddin Ahmed, FCA Director Mr. A. K. M Aftab ul Islam, FCA** Director Mr. Abu Hena Mohd. Razee Hassan Director Mr. Md. Mijanur Rahman Joddar*** Secretary * Mr. Hedayetullah Al Mamoon was appointed as Director of the Board in place of Mr. Mahbub Ahmed with eff ect from 09 March 2017. ** Mr. A. K. M Aftab ul Islam, FCA was appointed as Director of the Board with eff ect from 01 January 2017. *** Mr. Md. Mijanur Rahman Joddar was made as the Secretary of the Board in place of Mr. Mohammad Naushad Ali Chowdhury with eff ect from 17 October 2016. vi Governor Fazle Kabir Deputy Governors Abu Hena Mohd. Razee Hassan Shitangshu Kumar Sur Chowdhury S.M. Moniruzzaman Change Management Adviser Md. Allah Malik Kazemi Chief Economist Dr. Faisal Ahmed Executive Directors/Economic Adviser Dr. Md. Akhtaruzzaman Kazi Sayedur Rahman Ahmed Jamal A. K. M. Fazlul Haque Mia* Subhankar Saha Md. Golam Mostafa Mohammad Masum Kamal Bhuiyan Md. Sohrawardy Md. Abdur Rahim Mohd. Humayun Kabir Muhammad Mijanur Rahman Joddar Md. Shafi qul Islam Md. Nazimuddin Dr. Abul Kalam Azad Md. Muslem Uddin Debashish Chakrabortty Sheikh Abdullah Md. Serajul Islam Sheikh Azizul Haque Joarder Israil Hossain Sultan Ahmed A.N.M. Abul Kashem Ashok Kumar Dey As on 30 June, 2017. * Executive Director (Specialized) and in charge of ICT (additional duty). Departments* of the Head Offi ce and Department Heads** Accounts & Budgeting Department A.K.M. Fazlur Rahman, General Manager Agricultural Credit Department Manoj Kanti Bairagi, General Manager Bangladesh Bank Training Academy Rokeya Akhter, General Manager A. K. M. Mohiuddin Azad, General Manager Swapan Kumar Roy, General Manager A.B.M. Sadeque, General Manager Md. Mostafi zur Rahman Sarder, General Manager Md. Anwarul Islam, General Manager Chandan Saha, General Manager Bangladesh Financial Intelligence Unit Debaprosad Debnath, General Manager@ Bankers Selection Committee Secretariat Md. Mosharraf Hossain Khan, General Manager Banking Regulation & Policy Department Abu Farah Md. Naser, General Manager Chief Economist’s Unit Dr. Md. Ezazul Islam, General Manager Common Services Department-1 Nahida Begum, General Manager Common Services Department-2 Md. Tafazzal Hossain, General Manager Credit Information Bureau Monsura Khatun, General Manager Department of Banking Inspection-1 Mohammad Ahmed Ali, General Manager Department of Banking Inspection-2 Sheikh Mozaff ar Hossain, General Manager Department of Banking Inspection-3 Mohammad Yunus, General Manager Department of Banking Inspection-4 Md. Elias Sikder, General Manager Department of Communications and Publications G.M. Abul Kalam Azad, General Manager Department of Currency Management Md. Sultan Masud Ahmed, General Manager Department of Foreign Exchange Inspection S.M. Hasan Reza, General Manager Department of Financial Institutions & Market Md. Shah Alam, General Manager Deposit Insurance Department Md. Abdul Hamid, General Manager Debt Management Department Md. Awlad Hossain Chowdhury, General Manager Department of Off -site Supervision S.M. Rabiul Hassan, General Manager Expenditure Management Department-1 Md. Shoaib Ali, General Manager Expenditure Management Department-2 Md. Zamal Mollah, General Manager Foreign Exchange Investment Department Md. Rezaul Islam, General Manager Foreign Exchange Operation Department Md. Abu Taher, General Manager Foreign Exchange Policy Department Md. Masud Biswas, General Manager Financial Integrity and Customer services Department A.K.M. Amjad Hussain, General Manager Financial Inclusion Department Md. Abul Bashar, General Manager Financial Institutions Inspection Department Md. Shahidul Islam, General Manager Forex Reserve & Treasury Management Department Md. Azizur Rahman, General Manager Financial Sector Support & Strategic Planning Department Md. Ashraful Alam, General Manager Financial Stability Department Dr. Md. Kabir Ahmed, General Manager Governor’s Secretariat Dr. Md. Habibur Rahman, General Manager Human Resources Department-1 Noor-Un-Nahar, General Manager Human Resources Department-2 Qazi Enayet Hussain, General Manager Internal Audit Department Md. Sadrul Huda, General Manager@ Information Systems Development Department Debdulal Roy, Systems Manager Integrated Supervision Management Department Prokash Chandra Bhadra, General Manager IT Operation & Communication Department Mohammed Ishaque Miah, Systems Manager Law Department Syed Tariquzzaman, General Manager Monetary Policy Department Md. Julhas Uddin, General Manager Payment Systems Department Lila Rashid, General Manager Research Department Md. Abdul Awwal Sarker, General Manager Asish Kumar Das Gupta, General Manager Mahfuza Akther, General Manager Dr. Sayera Younus, General Manager Md. Mahbubar Rahman Khan, General Manager Secretary’s Department Md. Khurshid Alam, General Manager Statistics Department Roksana Begum, General Manager Md. Azizul Islam, General Manager Mohammad Ballal Hossain, General Manager Security Management Department Lt. Col. (Retd.) Md. Mahmudul Haque Khan Chowdhury, General Manager@ SME & Special Programmes Department Shaikh Md. Salim, General Manager Special Studies Cell Mohammad Golam Haider, General Manager Sustainable Finance Department Monoj Kumar Biswas, General Manager * As per alphabetical arrangement. ** As of 30 June, 2017. @ Contractual Basis Note: 1) Md. Bazlar Rahman Molla, General Manager, Nurun Nahar, General Manager, Main Uddin Ahmed, General Manager, Muhammad Shah Alam, General Manager, Md. Obaidul Hoque, General Manager, Md. Nazrul Islam, General Manager are on deputation with EEF Unit, Hous- ing Fund, Microcredit Regulatory Authority, Bangladesh Institute of Bank Management, Institute of Bankers Bangladesh, The Security Printing Corporation Bangladesh Limited. 2) Md. Eskandar Mian, General Manager, Mohammad Murshid Alam, General Manager and Kazi Aktarul Islam, General Manager are attached with HRD-1. Branch Offi ces* and Offi ce Heads** Barisal Md. Sohrawardy, Executive Director Md. Anwar Hossain, General Manager Bogra Kazi Sayedur Rahman, Executive Director Provash Chandra Mallick, General Manager Chittagong Mohd. Humayun Kabir, Executive Director Rahena Begum, General Manager Md. Habibur Rahman, General Manager Khulna A.N.M. Abul Kashem, Executive Director Md. Robiul Islam, General Manager Ashim kumar Majumder, General Manager Motijheel Dr. Abul Kalam Azad, Executive Director Md. Masum Patwary, General Manager Mohammad Khurshid Wahab, Currency Offi cer, (General Manager) Dr. Mihir Kanti Chakroborty, Chief Medical Offi cer (General Manager)@ Mymensingh Md. Zakir Hossain Chowdhury, General Manager Rajshahi Debashish Chakrabortty, Executive Director Laila Bilkis Ara, General Manager Nurun Nahar, General Manager Rangpur Joarder Israil Hossain, Executive Director Md. Shahin Ul Islam, General Manager Sadarghat Md. Eunus Ali, General Manager Sylhet Md. Serajul Islam, Executive Director Md. Shazzad Hossoin, General Manager * As per alphabetical arrangement. ** As of 30 June, 2017 @ Contractual Basis. x Contents Chapters Pages Chapter-1 Macroeconomic Performance and Prospects 1 Global Economic Outlook 1 Developments in the Bangladesh Economy 3 Growth Performance 4 Savings and Investment 4 Price Developments 5 Money and Credit Developments 5 Public Finance 6 External Sector 7 Near and Medium Term Outlook for Bangladesh Economy 8 Chapter-2 The Real Economy 10 Agriculture Sector 10 Industry Sector 11 Services Sector 13 Sectoral Composition of GDP 13 GDP based on Expenditure 14 Savings and Investment 14 Growth Outlook 15 Chapter-3 Price and Infl ation 16 Global Infl ation Scenario 16 Consumer Prices in Bangladesh 16 Infl ation in SAARC and Other Asian Countries 20 Wage Rate Trends 21 Near Term Infl ation Outlook 21 Chapter-4 Money and Credit 23 Stance of Monetary and Credit Policy 23 Monetary Policy Performance 23 Money and Credit Situation 24 Reserve Money Developments 25 Income Velocity of Money 26 Bank Credit 27 Bank Deposits 27 Credit/Deposit Ratio 27 Scheduled Banks’ Borrowing from Bangladesh Bank 27 Balances of Scheduled Banks with the BB and their Cash in Tills 28 Cash Reserve Requirement (CRR) 28 Statutory Liquidity Ratio (SLR) 28 Bank Rate 28 Interest Rates on Deposits and Lending 28 Liquidity Management framework 29 xi Contents Chapters Pages Chapter-5 Banking Sector Performance, Regulation and Bank Supervision 31 Banking Sector Performance 31 Aggregate Balance Sheet 32 Capital Adequacy 32 Asset Quality 33 Management Soundness 37 Earnings and Profi tability 37 Liquidity 38 CAMELS Rating 39 Operations of Banks in Urban and Rural Areas 40 Islamic Banking 41 Legal Framework and Prudential Regulations 41 Risk Based Capital Adequacy (RBCA) for Banks 41 Loan Classifi cation