2017 sees blots and blips on financial front

Rohingya issue dominates BD socio-political landscape

FE Team | Published: December 30, 2017 23:02:02

FE Report
The Gregorian calendar sheds 2017 today (Sunday) into the archives of time, leaving socioeconomic, political and cultural landscapes of Bangladesh, as also of the world, marked by some important events.
On the financial front at home, the year began with major changes in the shariah-based Islami Bank Bangladesh. Issues pertaining to changes to different banks' boards -- concomitant with major developments in the banking circles -- continued to prevail round the calendar year.
There were natural calamities as well, with their adverse impacts on the economy and people's livelihoods. Two spells of devastating flooding damaged standing crops and subsequent agriculture, resulting in shortage of rice and some spices and price rises.
Prices of the staple food hit an all-time high on the local market, so did onion prices.
Bangladesh came into world focus by a quirky happening -- Rohingya minority people flooding in to escape persecution at home in Rakhine state of neighbouring Myanmar.
As of December 2017, an estimated 655,000 Rohingya fled to Bangladesh in a fresh influx amid crackdown by military-men and predators. There are also 300,000 more already living in Bangladesh since earlier influxes.
Rohingya repatriation figured as a big issue later in the year, as the United Nations repeatedly adopted resolutions while China and Russia vetoed the motions and headed off the two countries to the discussion table for an amicable solution through bilateral dialogue.
The officially declared 'voluntary' retirement of SK Sinha as the Chief Justice of Bangladesh amid major developments centering round the historic Supreme Court verdict relating to the 16th amendment to the Constitution stands out as a mega-issue in the bygone year.
The disappearance and subsequent return of many people in the year remained a riddle -- all the episodes left cloaked in mystery.
At the outset of the year 2017, there were changes made to the board of directors of Islami Bank Bangladesh,
the largest both by the measure of paid-up capital and branch networks among private commercial banks.
Arastoo Khan, a former bureaucrat, was put at the helm of the bank in the first week of the outgoing year.
Social Islami Bank Limited, another shariah-based bank, also saw a dramatic management shakeup. Seven directors of the private-sector bank resigned from their posts on 'personal grounds'.
Four of the SIBL directors were independent while three others were shareholders of the bank.
Some incidents of voluntary retirement from bank boards and removal of CEOs by the central bank also featured the chronicles of the calendar year. AB Bank and Farmers' Bank are among them.
The Bangladesh Bank removed Managing Director of the Farmers Bank Bangladesh Limited (FBL) AKM Shameem later in the year.
Earlier, sometime in November, former home minister Dr Mohiuddin Khan Alamgir was made to resign as chairman of the Farmers Bank board of directors and executive committee.
Another member of the board, Mahabubul Haque Chisti, also stood down from the post of chairman of the FBL audit committee. A press release issued by the central bank said that these changes came in line with regulatory measures to strengthen the bank facing liquidity crunch.
Chairman of another private commercial bank -- AB Bank -- M Wahidul Haque and its two directors stepped down from the bank's board in December. The two others are Vice-Chairman Salim Ahmed and director Faheemul Huq.
In a major event amid stories of alleged forgeries and irregularities in the banking circles, the Anti-Corruption Commission (ACC) quizzed former chairman of the state-owned BASIC Bank, Sheikh Abdul Hye Bacchu.
Spiraling retail prices of two essential commodities -- rice and onion -- hit hard limited- income group of people.
The government cut down tariffs on import of rice to augment supply of the staple, but to little effects. Also, there was hardly any tangible price control of onion, which persists at the same level of around Tk 80 a kilogram despite new arrivals on the market.
The much-talked-about VAT Act 2012 failed to sail through in the year despite the fact that national budget statement had announced its launch from the first day of the current financial year, 2017-18. The government backtracked on implementing the tax law following obstruction from a section of businesses.
The capital market witnessed an upward trend, with its benchmark index rising over 6,000 points. There was a major development as a company came out of over-the- counter (OTC) market segregation at the fag-end of the year.
Bangladesh got international recognition of hilsha fish as geographical indication by the World Intellectual Property Organisation.
On the socio-political front, the situation is featured by a relaxation of tensions with some eruptions in militancy tackled and major political parties like the ruling Awami League and the beleaguered BNP celebrating some national events with mammoth rallies, albeit as next elections draw near.
In a landmark development, the UNESCO recognized Bangabandhu Sheik Mujibur Rahman's historic 7th March speech as a world documentary heritage.
jasimharoon@yahoo.com