Asian Banking Summit kicks off in Dhaka

 Star Business Desk

Globally adaptive practices are essential to strengthening the existing risk management systems in the banking sector, speakers said at a banking summit that kicked off in Dhaka yesterday.
The two-day Asian Banking Summit, a platform for national and international banking experts, will focus on topics ranging from risk management to trade finance, compliance, and IT security.
Nimai Management Consultants, a UAE-based financial services firm, organised the event at Le Meridien hotel.
Analysing regional economic trends, banking security in IT, and compliance issues mainly featured in the discussions on the first day, according to a statement.
Nisarg Dugad, managing partner of Nimai Management Consultants; Meera Sanyal, former CEO of Royal Bank of Scotland, India; and MA Rumee Ali, chief executive of Bangladesh International Arbitration Centre, took part in a discussion on regional economic trends.
“Bangladesh has articulated a clear and far-reaching vision for 2021. The summit offers a unique platform for stakeholders in the banking and financial services industry to discuss, learn from each other and map out a plan that will fuel the success of national goals,” Sanyal said.
The summit's focus on risk management is appropriate and timely given the global macroeconomic instability and market volatility, she said. Ali said: “I am sure the summit will add to the knowledge and data bank that can be used to drive the changes required for a more robust financial system, which we all aim for, to protect the present and build a better future.”

SK Sur Chowdhury, deputy governor of Bangladesh Bank, was the guest of honour at the event, while Salman F Rahman, chairman of IFIC Bank, and Abdur Rouf, vice chairman of Mutual Trust Bank, were special guests.  

HC stays case on Heidelberg Cement scam

 Star Business Report

The High Court yesterday stayed a case on the 1996 stockmarket scam, the verdict of which was scheduled to be delivered on November 8 by a special tribunal.
Justice Naima Haider and Justice Mustafa Zaman Islam passed the order after AS Shahudul Islam Bulbul, a defendant in the case, filed a writ petition.
The petition challenged a clause in the Securities and Exchange Commission Ordinance of 1969 that put the “burden of proof” on the defendants, said Mohsen Rashid, Bulbul's lawyer.
With the stay order, the proceedings of the case will remain suspended at the tribunal, he said.
Earlier on October 27, the special tribunal fixed November 8 to deliver the verdict on the case, which involves Rakibur Rahman, former president of the Dhaka Stock Exchange; AS Shahudul Islam Bulbul, a former director of the premier bourse; and Abu Tayeb, the then chairman of Chittagong Cement and Clinker and Grinding Company.
The three accused were directors of the cement company, now known as Heidelberg Cement, according to a probe report after the 1996 scam.
Although Bangladesh Securities and Exchange Commission directed them to step down from the posts, they continued to stay as directors in the company, whose prices crossed Tk 18,000 per share in 1996 against a book value of Tk 134.

One of the directors of the company transferred a large number of shares in the July-November period of 1996 to one of his relatives, which were then sold off in the market, the probe report said, without mentioning any name.
The BSEC had also inquired about the sales of shares by the company to outsiders (Indian and Iranian nationals) by bypassing the DSE and Chittagong Stock Exchange.
There was no satisfactory reply from the company, which is also a defendant of the case.
During the period, some shares were sold by foreign investors and there were some price-sensitive announcements, which made the prices peak, the committee found.
These clearly indicate an act of manipulation and the dealings come within mischief under a section of the Securities and Exchange Ordinance, the report said.

China seeks railway electrification deal in Bangladesh

Rezaul Karim and Wasim Bin Habib, from Chengdu, China

China has proposed to introduce an 'electrification system' in Bangladesh on the country's rail networks to allow for a faster, easier and efficient transport service and boost capacity.
"As a fast developing country, Bangladesh should immediately start electrification of its railway lines so that the transportation capacity can be increased dramatically in the future," said Hu Weidong, vice president of state-owned Dongfang Electric Corporation (DEC).
Speaking to visiting journalists from Bangladesh and Nepal at the DEC headquarters, he said he already pitched the idea to Md Amzad Hossain, director general of Bangladesh Railway, while on a visit to Bangladesh last week.
A railway electrification system supplies power to trains or trams without an on-board prime mover or local fuel supply. Electrifying key routes on the railway will mean faster, greener, quieter and more reliable journeys for thousands of passengers.
"We are interested because we specialise in electrification of railways," said the top executive of a leading company specialising in power equipment manufacturing and worldwide power projects.
Headquartered in Chengdu, the capital of Sichuan Province, DEC is one of the largest backbone enterprise groups of the Chinese central government. Founded in 1958, DEC already installed the Rawjan Thermal Power Project in Chittagong.
DEC has been enlisted among the top global contractors evaluated by the Engineering News-Record, a US-based weekly magazine that provides news, analysis, data and opinion for the construction industry worldwide since 1994, Weidong said.

Weidong hopes that Bangladesh will consider China for construction of its second nuclear power plant, especially as China believes that the electricity demand of Bangladesh will increase dramatically in the coming years.
"For a country's development, the first thing is power and infrastructure. That has been China's experience in the last three decades."
During a recent discussion with Bangladesh officials, he found that the nation has an installed capacity of around 14,000MW at present. This capacity cannot fully meet the electricity demand of fast growing Bangladesh, as demonstrated by the purchase of power from neighbouring India, he said. "That means you have a big shortage of electricity supply, for which I hope DEC and Bangladesh can work together."
Moreover, some Chinese textiles are shifting their production facilities to Bangladesh, which will further increase the demand for power, he said.
"Therefore, I think the demand for power [in Bangladesh] will increase dramatically. On the other hand, DEC has a manufacturing capacity of up to 42,000MW. So we have a lot of room for cooperation."
European countries like Britain are using Chinese technology in nuclear power plants, so the issue of safety is moot, he said. China and Britain signed a deal to build a nuclear power station with a capacity of over 1,000MW in the UK a couple of days ago, during Chinese President Xi Jinping's first state visit to London, he added.
"So our standards are being recognised by developed countries, like the United Kingdom."
Regarding the Rooppur nuclear power plant in Bangladesh, the top executive said Russian technology is good, but Bangladesh will surely make a comparison in taking any future decision.
DEC top officials also discussed their past, current and future projects in various countries, including Bangladesh. Jin Wei, deputy general manager (plant and project) and other officials of DEC were also present.