Delay in settling export-import payments tarnishing BD's image: ICCB President

The commercial banks in Bangladesh in a number of cases did not make payments on time against the letters of credit (L/Cs) though there was no discrepancy, tarnishing the country's image abroad very badly, said ICC Bangladesh President Mahbubur Rahman.

"We at the ICC Bangladesh quite frequently receive complaints from foreign banks for not honoring the L/C terms and making payments on time," he told the closing ceremony of a workshop on 'Documentary Trade Finance: Technical, Legal & Technology' organised by the ICC Bangladesh in Dhaka recently, according to a press release issued on Wednesday.

A total of 151 participants from 35 banks attended the workshop in Dhaka. Earlier a similar workshop was held in Chittagong where 80 participants from 30 banks attended.

Mr. Rahman urged the Bangladesh Bank (BB), the regulator, to make sure that the commercial banks do not withheld the payments when the documents are free of discrepancy.

He advised the participants to scrutinise the documents carefully and ensure that payments are made on time. He also advised them to do their duties with due diligence and without any pressure as well as to follow the international banking rules and regulation while settling the international payments.

The ICCB President mentioned that the financial institutions of the country are passing through a very crucial time because of nexus between regulators, bankers and big borrowers. "This has to be stopped," he said.

To remain competitive in today's changing environment, he said, both the clients and financial institutions have to streamline their trade activities. As per the ICC 2017 survey, the major challenges facing businesses today are cost control, limited technical competency, limitations of current technology, poor productivity management and, limited training and development.

In his address, ICC Bangladesh Banking Commission Chairman & Chief Executive Officer of Bangladesh International Arbitration Centre (BIAC) Muhammad A. (Rumee) Ali quoting media reports said the banking sector of the country has lost more than Tk 225 billion during the last 10 years through major scams.

Therefore, he added, the yearly losses stand at around Tk 22.5 billion and daily around Tk 86 million (260 working days a year).

"How the banking sector is sustaining that situation and how the sector declaring profit every year?" he questioned, adding that lack of good governance and pressure of the vested group are the main reasons for such huge scam.

He urged the central bank to ensure good governance of the banking sector.

Mr. Vincent O' Brien, Executive Committee Member of ICC Banking Commission, Paris and Vice Chair of the Banking Commission of ICC United Arab Emirates, conducted the workshop. ICC Bangladesh Secretary General Ataur Rahman also spoke at the programme.