Banks advised again not to ask importers about sources of fund
Monday, 23 July 2007
FE Report
The Bangladesh Bank (BB) has again directed the commercial banks not to harass importers of essential items by asking the sources of import finance while opening letters of credit (LCs).
"The BB has not given any instruction to the banks about seeking information on source of money form importers," the central bank said in a statement, issued Sunday.
It has come to the BB's notice that the banks are asking about the source of money from the importers when they approach for opening of LCs against import of essential items, the statement added.
Earlier, the central bank raised the issue at a recent meeting of bankers and asked the chief executives not to harass the importers.
Association of Bankers, Bangladesh (ABB) also conveyed the central bank's instruction to the chief executives of all commercial banks through a notification.
The central bank hopes the clarification will remove all apprehensions about the transactions relating to opening of LCs, the statement noted.
Meanwhile, the opening of LCs of some essential items including rice, wheat, sugar, edible oil, milk food and onion recorded a rise during the first 12 days of the current month compared to that of the corresponding period of the previous year.
According to the central bank statistics, the opening of LCs for rice increased, in terms of value, by $7.62 million, for wheat by $8.46 million, sugar by $0.59 million, milk food by $1.42 million, onion by $0.32 million and edible oil by $22.17 million.
The Bangladesh Bank (BB) has again directed the commercial banks not to harass importers of essential items by asking the sources of import finance while opening letters of credit (LCs).
"The BB has not given any instruction to the banks about seeking information on source of money form importers," the central bank said in a statement, issued Sunday.
It has come to the BB's notice that the banks are asking about the source of money from the importers when they approach for opening of LCs against import of essential items, the statement added.
Earlier, the central bank raised the issue at a recent meeting of bankers and asked the chief executives not to harass the importers.
Association of Bankers, Bangladesh (ABB) also conveyed the central bank's instruction to the chief executives of all commercial banks through a notification.
The central bank hopes the clarification will remove all apprehensions about the transactions relating to opening of LCs, the statement noted.
Meanwhile, the opening of LCs of some essential items including rice, wheat, sugar, edible oil, milk food and onion recorded a rise during the first 12 days of the current month compared to that of the corresponding period of the previous year.
According to the central bank statistics, the opening of LCs for rice increased, in terms of value, by $7.62 million, for wheat by $8.46 million, sugar by $0.59 million, milk food by $1.42 million, onion by $0.32 million and edible oil by $22.17 million.