Mamun Rashid

2023 is already here and no doubt, the last three years have been rough for Bangladesh. It is almost as though a ship at sea navigating and making its way through rough waters during a storm.

I am grateful to each of the seniors at ANZ, Standard Chartered, Citibank, and for the last eight years at PwC, for trusting me as an important client interface and solution-building person. Almost 35 years of client interface experience is all about what I am today.

In the post-pandemic, Bangladesh recovered reasonably quickly and was seeing encouraging signs that the economy was well poised to return to the pre-Covid growth path.

We have seen the year 2022 to be a year of many experiments for regulators, and more importantly, the local and international private sector.

The beginning of 2022 saw Bangladesh’s economy poised to make a strong recovery from Covid-19 with demand across the world rebounding, supply chain backlogs easing and improving domestic consumption.

As Bangladesh steps into its 51st year of Independence, one cannot help but applaud its inspiring story of growth. Bangladesh has transformed itself from an economic “basket case” into one of the world’s fastest-growing economies.    

The Bangladeshi startup ecosystem has seen remarkable growth in the past few years with approximately 1,200 active startups across sectors, including fintech, logistics, healthcare, tourism, agriculture and education. In fact, startups like ShopUp, bKash, Pathao, Chaldal, Maya, Shajgoj, and iFarmer have innovated new products and processes to transform the market and have attracted millions of dollars in foreign investments for Bangladesh along with creating thousands of new jobs.

Our professor for reputation and crisis management at Kellogg School of Management told us: “Nothing seems to work during a crisis. People are either confused or panicked all along.”

The turmoil in the banking sector is on the rise. A lack of good governance, rampant corruption, and political and managerial interference in management have led to this scenario. As the prices of daily commodities are on the rise, people are focusing less on new savings and on the contrary, using their prior savings to meet their daily needs.

When I attend a banking forum, junior bank executives often ask me: “What did I learn out of so many credit inspections across the world? How could we avoid loan losses?”

Our importers and institutions, those that need to remit various fees and surplus earnings outside the country, are facing challenges with foreign currency (FCY) payments for the last several months.

When I joined ANZ Grindlays Bank in the mid-eighties from a local bank, it was more to do with the social prestige the British legacy bank commanded in this part of the world. When I joined Standard Chartered in mid-1993, it was repositioning an erstwhile lousy bank. 

Bangladesh has made gradual progress in reducing some constraints on foreign direct investments (FDIs). However, many feel a lot needs to be done when it comes to improving the ease of doing business here.  

Hundi might be informal, but it is quite well-organised and more importantly, it is perceived to be much easier and more convenient in comparison to the formal banking system.  

The Bangladesh Bank capped the interest rate on loans at 9 per cent and on deposits at 6 per cent for banks, and 11 per cent on loans and 7 per cent on deposits for non-bank financial institutions.  

Digital transformation is the process of embedding technologies across businesses to drive fundamental change. Starting a digital transformation journey also requires a new mindset. It is a chance to reimagine how companies do things, often from the ground up. 

Whether it is semi-controlled or self-censored media, corridor discussions or even Transparency International Bangladesh reports, we have been hearing about corruption in the public enterprises and inaction by the subsequent governments for the last many years.  

Compliance with the ESG standards is not going to be an option soon for business enterprises functioning even in developing countries like Bangladesh. But as Bangladesh

Traditionally, natural gas has been the primary source of energy in Bangladesh. For the last few years, domestic gas production has been declining and we have started importing liquefied natural gas (LNG) to meet the excess demand.  

Despite diverse challenges, the banking sector is evolving faster than ever before, and such changes are expected to happen even quicker in the coming years.