News & Events

Review Workshop on Treasury Operations of Banks held in BIBM

Press Release

Dhaka,15 May 2018

A day long review workshop was held at the Bangladesh Institute of Bank Management (BIBM) on 15 May 2018, in its auditorium. Mr. Abu Hena Mohd. Razee Hassan, Chairman, Executive Committee, BIBM and Deputy Governor, Bangladesh Bank was present in the review workshop as the chief guest. BIBM Director General Toufic Ahmad Choudhury Chaired the Program. He delivered welcome address.

A paper titled “Treasury Operations of Banks " was presented in the workshop by Md. Nehal Ahmed,  Professor of BIBM. Other members of the review workshop team are Refat Zaman Shourov, Lecturer, BIBM; Mehedi Zaman, Senior Executive Vice President and  Head of Treasury, Eastern Bank Limited, and Executive Vice President and  Head of Treasury, Bank Asia Limited.

The study identifies the problem areas as well as success factors in Treasury Operations of Banks in Bangladesh. A good number of participant’s senior bank executives, academicians, media representatives, faculty members, officers of BIBM participated in the review workshop.

BIBM Muzaffer Ahmed Chair professor & Former Dhaka University Economics department professor Barkat-e-Khuda, BIBM Supernumerary Professor Yasin Ali, Bangladesh Krishi Bank Managing Director Md Ali Hossain Prodhania, Former Managing Director of Prime Bank Limited Ahmed Kamal Khan Chowdhury, Former Managing Director of Pubali Bank Limited Helal Ahmed Chowdhury, BIBM Faculty Member Syed Mohammad Bariqullah spoke among others at the event.

Deputy Governor Abu Hena Mohd. Razee Hassan said, treasury risk management has often been in the news especially in situations where things have gone wrong. Efficiency in treasury risk management has become a critical element of banks’ sustainability and growth. Therefore, any problems in the treasury risk management have an immediate effect on banking industry, financial markets, and financial systems. Thus, the changing circumstance demands greater emphasis on efficient treasury management from the view point of both banks and regulatory authorities.

He said, treasury is exposed to risk due to the uncertainty prevailing in the dynamic business world. However, management is alarmed about the treasury risk management due to the fact that the major functions of the businesses is carried out at the sole decision of the treasurers such as investments in securities, foreign exchange, asset or liability management and cash management.

Professor Nehal Ahmed of BIBM presented the findings at a program.  Data shows that private sector credit growth was 18.1 percent in December last year while deposit growth was hovering around 10 to 11 percent. In 2015, credit growth was 12.7 percent against the deposit growth of 12.6 percent. The deposit growth rate was stable in 2015 and 2016 but declined in 2017. The growth rate was 13.1 percent in 2016 and 10.6 percent in 2017. This reduction of deposit growth might be the outcome of the increased investment in savings instruments, the survey stated.

Sliding deposit growth is an important signal for banks' treasury departments, as the situation may tighten further in the coming days, the report said. The survey observed that the advance-deposit ratio surged to 76 percent at December's end last year, up from 71 percent two years ago.

Some banks have opened LCs (letters of credit) beyond their capacity, creating pressure on their foreign exchange, said BIBM's Supernumerary Professor Helal Ahmed Chowdhury, also a former Pubali Bank managing director. The veteran banker asked banks to establish effective coordination between treasury and business development departments.

BIBM Director (Training) Dr. Shah Md. Ahsan Habib delivered concluding remarks.



Written by Manager

Wednesday 16th May 2018