Recession pares down BB profit

Global financial crisis has taken a heavy toll on Bangladesh Bank's profit although the central bank's prudential measures have helped commercial banks avoid losses during the recession period.
Bangladesh Bank's operating profit declined by 20.6 percent or Tk 650 crore in fiscal 2008-09 compared to that of a year ago.
“Lower interest rate globally has caused this fall in profit,” BB Governor Dr Atiur Rahman told reporters while releasing the central bank's annual report at its headquarters in Dhaka yesterday.
The BB generally invests its money in US and European banks. It had withdrawn its investment in foreign banks in the wake of the ongoing global recession that started in mid-2007.
The central bank earned Tk 2,500 crore as operating profit in fiscal 2008-09. The profit was Tk 3,150 crore in 2007-08.
“There was not more than one percent interest rate in the global market last year,” said Rahman, reasoning the slide in profit.
During fiscal 2008-09, the BB deposited Tk 1,000 crore less to the government account than that of the previous year. Out of the Tk 2,500-crore operating profit, Tk 1,730 crore was transferred to the government and Tk 770 crore to statutory funds, interest reserve account and other funds.
Senior BB officials were also present.