Finance | The Daily Star
  • To cut or not to cut?

    To cut or not to cut yield on national savings schemes (NSS)—that's one headache our finance minister is unable to get rid of. Will reducing rates on national savings schemes (NSS) have a strictly positive impact on our economy?

  • What to expect from the upcoming budget

    The upcoming budget for 2017-18 will cover the last full financial year before the general elections.

  • Spend more on the scholars

    In the 2016 budget, the Bangladesh government made the highest ever allocation to the education and science sector.

  • Illiberal stagnation

    Today, a quarter-century after the Cold War's end, the West and Russia are again at odds. This time, though, at least on one side, the

  • Monetary policy brandishing double-edged swords

    Detractors can fret about instability and balance of payment difficulties, but make no mistake, such risks will remain contained if capital controls are relaxed gradually (following a medium-term plan) and political conditions remain, by and large, stable. In fact, some of the foundations that merit a more liberal foreign exchange regime are already in place.

  • Flaws of demonetisation: Lessons from India's experience

    The saying goes “a wise man learns by the mistakes of others”. Many countries may go for demonetisation in near future looking at the success of India in curbing fake notes circulation and curtailing black money.

  • Open new banks or go for merger?

    At present, the banking sector is suffering from an acute shortage of skilled professionals. Except for a few foreign and local banks, the quality of staff drops drastically. Depth and breadth of knowledge is poor. This is an ominous sign for the industry since professional human resource is essential for its growth and development.

  • Will remittances remain low for long?

    If studies by Columbia University's Jagdish Bhagwatiand and IMF's Pierre-Richard Agenorare are to be believed, restrictions on foreign trade and capital flows gave birth to generations of these illegal markets across the world.

  • economic plan for japan

    A better economic plan for Japan

    It's been a quarter-century since Japan's asset bubble burst – and a quarter-century of malaise as one “lost decade” has followed another.

  • Reform or divorce in Europe

    In response to asymmetric shocks and divergences in productivity, there would have to be adjustments in the real (inflation-adjusted) exchange rate, meaning that prices in the eurozone periphery would have to fall relative to Germany and northern Europe.

  • Airing the IMF dirty

    Airing the IMF's dirty laundry

    Following the International Monetary Fund's controversial actions in the Asian financial crisis of 1998, when it conditioned liquidity assistance to...

  • RCBC ‘preserves ties with US banks’ despite heist role

    Rizal Commercial Banking Corp (RCBC) officials say they have preserved ties with major US banks despite the use of one of its branches in Manila by cyber criminals to funnel $81 million stolen from the Bangladesh central bank’s account at the Federal Reserve Bank of New York.

  • New monetary policy aims inflation control

    Bangladesh Bank today announced its new monetary policy with an aim at stabilising inflation at a moderate level keeping pace with the government's budgetary target of higher growth.

  • Why do some countries trade more than others?

    Heoretically, trade liberalisation results in productivity gains through increased competition, efficiency, innovation and acquisition of new technology.

  • New Education Budget: To fit the purpose

    The Tk. 49,000 crore or US$ 6.3 billion allocated for education, when divided by the estimated 40 million students in the country, amounts to Tk. 12,000 per student public spending for a year or about US$ 150 on average for all levels of education.

  • Of Obesity or Good Health?

    The Finance Minister has proposed a mega Tk.3.4 trillion budget for the upcoming fiscal year 2016-17. It is about 29 percent higher than the revised budget of the outgoing fiscal year.

  • How will the government arrange the money?

    I must say that the budget is too ambitious in terms of size. It's 15.5 percent larger than the current FY's initial budget and 29 percent higher than the revised one.

  • “We can't realise this budget without fundamental reforms”

    It's a very good budget but it's not clear how they are going to achieve this. I think the idea is here, the intentions are great, but given the fact that every year we over-project and underachieve, there is a problem of credibility.

  • How zakat can eliminate poverty

    According to a research done by Dr. Kabir Hassan, Prof. University of New Orleans, it has been calculated that each year BDT 25,000 crore of zakat can be obtained from Bangladesh and if distributed properly each extremely poor family can get two million taka from this huge fund.

  • The Moral Compass

    The fact that the country's actual default loan amount - including that of written-off loans - in the country's banking sector has exceeded Taka 1 trillion mark for the first time, qualifies us to be one of the leaders of the corporate shame club.

  • The Immediate Tasks at Hand

    More than three months have passed since the Bangladesh Bank (BB) heist, and in the interim much water has flown down the Padma, Meghna,

  • VAT law could spell trouble

    That the government needs to increase revenue is understandable, given that we are looking at wholesale promotions within the bureaucracy and a new revised wage board that has to be implemented for State officials. However, one has to take into account at what cost will revenue be increased. Going by what has been published in the press, everything from electricity to apparels will be more expensive – products and services will boast at least a 15 percent increase in selling price.

  • A tribute to a champion of the deprived

    I can think of few people who have done more for the world's deprived population than Fazle Hasan Abed.

  • Reforms for higher investment cannot be delayed

    It should not be surprising that private sector investment's share in GDP is shrinking. Banks are drowning in excess cash to the point where call money rate collapsed to historic lows.

  • Digital Bangladesh - Right to information and climate finance

    Unfortunately, so far, our performance on both transparency as well as accountability has not been very good. Fortunately, there is still time to improve this before the major climate change funds begin to flow.

  • Helping farmers in the lean season

    In northern rural Bangladesh, the autumn lean season is the most difficult time of year, especially in Rangpur, where close to half of the 15.8 million residents live below the poverty line.

  • The Treasury Officer and those dark days of March 1971

    This is the story of my father who was a civil servant assigned as the treasury officer of Dhaka in 1971.

  • Reducing cyber risk of banks

    Guidelines on Internal Control & Compliance for Banks were issued by the central bank on March 8, 2016, which recommended the commercial banks to take insurance as a risk mitigation measure. Such insurances are not over-the-counter products, and must be customised as per each bank's unique exposures.

  • Trade in a Time of Protectionism

    Today, intra-regional trade accounts for just 5 percent of South Asia's total trade, compared to 25 percent for the Association of Southeast Asian Nations. This vast untapped potential presents the region with an opportunity for growth that does not rely on the strength of the world economy.

  • How smart solutions to tax reform can help develop infrastructure

    Mobilising more resources for government could help improve many public services and goods, including the massive infrastructure needs of the country. But is mobilising more government resources the best way to help Bangladesh?

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