Dhaka: 12:39 PM, Tue, 25 Jun, 2019

Reducing risk and cost of foreign trade possible

Amirul : risingbd.com
Publish on: 2018-05-28 6:40:51 PM     ||     Updated: 2018-05-29 9:35:57 AM

Economic Correspondent: It is possible to largely reduce the risk and cost of foreign trade. For this, a database for credit report can be created with the assistance of Bangladesh Bank (BB) and other organizations of banking sector, according to a report prepared by Bangladesh Institute of Bank Management (BIBM).

The statements came at a roundtable held at the BIBM auditorium in the capital's Mirpur on Monday.

Stressing the need for building a central database for credit report, speakers at the roundtable said such steps would help stop the supply of weak and fake credit report that will ultimately reduce the banking sector’s risks in international trade.

They said bankers should be more conscious so that none can use them for irregular activities, including siphoning of money.

The BIBM organized the roundtable discussion on ‘Practices of Obtaining Credit Report of Foreign Counterparts in Trade Services-Is it Working?’ at its auditorium this morning.

Director General of BIBM Dr Toufic Ahmad Choudhhury chaired the discussion while Prof Dr Shah Md Ahsan Habib of BIMB presented a research paper on the topic.

BIBM executive chairman and Bangladesh Bank (BB) deputy governor Abu Hena Mohammad Razee Hassan attended the discussion as chief guest while ATM Nesarrul Hoque of Mutual Trust Bank, Md Mahmudur Rahman of Islami Bank Bangladesh, Pradip Paul of BB’s foreign exchange policy department and Tofayel Ahmed of BIBM took part in the discussion.

Ahsan Habib said 26 export establishments did not get payments against an export order recently and it was not possible to trace the importers. There irregularities involving Tk 600 crore came to the notice of all, he said, adding that such incidents could not have occurred if proper steps were taken as per the credit report.

BB deputy governor Abu Hena Mohammad Razee Hassan said some irregularities relating to international trade came to the notice of BB. Banks and the country will face risk, if banks fail to perform skillfully in the international trade, he added.

BB has been working to stop illicit trafficking of money from the country, he said, adding that banks have been instructed to be conscious in dealing with some international banks.

risingbd/Dhaka/May 28, 2018/Nasir/AI