Basic Knowledge for Bankers
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Background of Basel-II
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What is BIS ?
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The Bank for International
Settlements (BIS) is an international organization, which fosters
international monetary and financial co-operation and serves as a bank for
central banks. The BIS fulfils this mandate by acting as: i) a forum to
promote discussion and policy analysis among central banks and within the
international financial community; ii) a centre for economic and monetary
research; iii) a prime counterparty for central banks in their financial
transactions agent or trustee in connection with international financial
operations.
The Head Office is in Basel, Switzerland,
and Established on 17 May 1930. The BIS strongly advises caution against
fraudulent schemes.
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What is BASEL-I
?
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Basel Committee on Banking
Supervision (BCBS) brought out the guidelines for calculation of capital
charge on Loans & Advances and Investments based on the Risk Weights
applicable to the counter –party / borrower- constituent.
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What is BASEL-II ?
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Basel –II is recommendatory
framework for banking supervision, issued by the Basel Committee on Banking
Supervision in June 2004. The objective of Basel-II is to bring about
international convergence of capital measurement and standards in the banking
system.
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What are three pillars?
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Pillar-1: Minimum Capital Requirements-
Deals with the maintenance of regulatory capital calculated for three major
components of risk that a bank faces: Credit Risk, Operational Risk and
Market Risk.
Pillar-2: Supervisory Review Process-
Deals with regulatory response to the first pillar, giving regulators much
improved tools over those available to them under Basel-I.
Pillar-3: Market Discipline
Requirements- The third pillar greatly increases the disclosures that the
bank must make.
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WHAT IS MONEY LAUNDERING?
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Money Laundering means –
- Properties acquired or earned directly or
indirectly through illegal means;
Or, Illegal transfer,
conversion, concealment of location of property, acquired or earned directly
or indirectly, through legal or illegal
means or providing assistance to such activities.
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STAGES OF
MONEY LAUNDERING
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Placement – Illegal funds or assets are
first brought into the financial system.
Layering – Illegal funds or assets are
moved, dispersed and distinguished to conceal their illegal origin
Integration – Illegal funds or assets are
entered into the economy appearing as normal business funds.
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Credit Risk Grading (CRG): It is an effective tool based on pre-specified scale reflecting the credit risk for an exposure.
CRG is
mandatory as per BRPD Circular No.18
of May’2005
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Usage
of CRG:
n
Obligor
level analysis
n
Credit
Selection & Pricing
n
Monitoring
& Internal MIS
History
of CRG:
n
LRA
introduced in 1993 suffers from subjectivity
n
Risk
Grade Score Card introduced in 2003 is not comprehensive
n
CRG
introduced in 2005; simplified & user-friendly
Categories
of CRG for commercial client:
Number |
Grading |
Score |
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1
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Superior
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Fully cash secured, secured by
government/International Bank Guarantee
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2
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Good
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85+
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3
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75-84
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4
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Marginal/Watch list
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65-74
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5
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Special Mention
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55-64
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6
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Substandard
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45-54
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7
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Doubtful
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35-44
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8
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Bad & Loss
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<35
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A. Financial Risk (50%) : Probability of failure to meet obligation
due to financial distress.
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1. Leverage: (15%)
2. Liquidity: (15%)
3. Profitability: (15%)
4. Coverage: (5%)
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Debt-Equity Ratio:
15 for less than 0.26 & 0 for more than 2.75
Current Ratio: 15
for greater than 2.74 & 0 for less than 0.70
Operating Profit
margin: 15 for greater than or equal to 25% & 0 for less than 1%.
Interest Coverage
Ratio: 5 for greater than or equal to 2 & 0 for less than 1.
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B. Business/Industry Risk (18%) : Adverse Industrial
situation /Unfavourable business condition.
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1. Size of Business (5%) [5 for ‘Sales 60 crore’ & 0 for ‘Sales
less than 2.50 crore’]
2. Age of Business (3%) [3 for >10 years & 0 for < 2
years]
3. Business Outlook (3%) [3 for ‘favorable’
& 0 for ‘Cause for concern’]
4. Industry Growth (3%) [3 for Strong & 0
for No Growth]
5. Market Competition (2%) [2 for Dominant
Player & 0 for Highly Competitive]
6. Entry/Exit Barriers (2%) [ 2 for Difficult
& 0 for Easy ]
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C. Management Risk (12%): Probability of default
due to poor management ability.
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1. Experience (5%) [5 for >10 years & 0 for no
experience]
2. Second Line/ Succession (4%) [4 for ready
succession & 0 for succession in question]
3. Team Work (3%) [3 for Very Good & 0 for
Regular Conflict]
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D.
Security Risk (10%) : Probability of default due to poor quality of security.
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1. Security Coverage (Primary)- 4% [4 for Fully
pledged/substantially cash covered/Reg. Mortg
& 0 for no security]
2. Collateral Coverage (Property Location) – 4%
[4 for Municipal/Prime Area & 0 for no collateral]
3. Support (Guarantee)- 2% [2 for high networth
& 0 for no guarantee]
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E.
Relationship Risk (10%): Risk areas in terms of Borrower-Lender relationship.
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1. Account Conduct (5%) [5 for >5 years faultless record & 0
for Irregular dealings in account]
2. Utilization of Limit (2%) [2 for >60%
& 0 for <40%]
3. Compliance of Covenants/Conditions (2%) [2
for full compliance & 0 for No compliance]
4. Personal Deposits (1%) [1 for significant
personal deposit & 0 for No deposit]
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Major risk components: 5
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Total number of risk components: 20
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Limitation
of CRG: One Size does not Fit All.
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CRG
REVIEW
Credit Risk Grading for
each borrower should be assigned at the inception of lending and should be
periodically updated. Frequencies of the review of the credit risk grading are
mentioned below;
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Number
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Risk
Grading
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Short
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Review
frequency (at least)
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1
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Superior
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SUP
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Annually
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2
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Good
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GD
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Annually
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3
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Acceptable
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ACCPT
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Annually
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4
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Marginal/Watch
list
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MG/WL
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Half
yearly
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5
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Special
Mention
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SM
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Quarterly
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6
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Sub-standard
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SS
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Quarterly
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7
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Doubtful
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DF
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Quarterly
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8
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Bad
& Loss
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BL
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Quarterly
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Categories of CRG for NBFI:
Number |
Grading |
Score |
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1
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Superior
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85+
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2
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Good
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75-84
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3
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65-74
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4
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Marginal/Watch list
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55-64
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5
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Special Mention
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45-54
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6
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Substandard
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35-44
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7
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Doubtful
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25-34
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8
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Bad & Loss
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24
& below
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Principal Risk Components
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Total Points
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Principal Risk Components
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Total Points
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Quantitative Factor
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60
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Qualitative
Factor
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40
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Capital Adequacy
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15
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Management
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10
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Asset Quality
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15
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Regular Environment & Compliance
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10
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Earnings Quality
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15
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Risk Management
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5
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Liquidity & Capacity of External Fund
Mobilization
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10
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Sensitivity to Market Risk
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5
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Size of the Company & Market Presence
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5
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Ownership (Share holding Pattern) &
Corporate Governance
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5
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Accounting Quality
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3
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Franchise Value
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2
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EEF (Equity & Entrepreneurship
Fund )
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i.
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To increase investments in two
promising industrial sectors viz .,
1. Software industry, and 2. Food processing and agro-based industry (excluding the conventional sub-sectors such as rice mills/flour mills/fishing trawlers, cold storage for potato etc.). and also to encourage entrepreneurs in these sectors |
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ii.
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Eligibility for equity support from
the EEF:
1. The project will have to be a new one and belong to either of the sectors viz., software industry or food processing and agro-based industry. 2. The sponsors/entrepreneurs applying for EEF support will have to be a private limited company registered under the Companies Act, 1994 and established old companies can also apply for EEF support by setting-up a subsidiary new private limited company. But in case of a software company registered on or after 01 January, 1997 will be treated as a new company. 3. The total project cost (including net working capital) of the proposed project will have to be of minimum 0.50 (half) crore. 4. The project shall have to be viable technically & financially. It should be environment-friendly. Importance shall be given on the appraisal of the entrepreneurship such as: educational qualifications in the relevant discipline, knowledge in the technology / process involved, skill in marketing of the products/services, proven track record in implementing and operating such project, track records in financial conduct specially with Banks/FI. In case of ratio analysis the project has to offer minimum IRR (Internal Rate of Return) of 15%, Return on equity (ROE) of 15%, Debt service coverage Ratio 1.50:1, Current ratio 1.50:1 and Fixed asset coverage ratio 1.50:1 and SWOT analysis should have to be acceptable. 5. The non-resident Bangladeshis will be given preference subject to the fulfillment of the terms & conditions mentioned in the above paragraphs. 6. Any defaulter (as defined by Bangladesh Bank) cannot apply for EEF. 7. Where a sponsor of a project needs term-loan and/or working capital loan from any Bank/FI and also equity support from the EEF, he has to submit application to the Bank/FI concerned. The Bank/FI will have to be satisfied that the project has fulfilled all the terms and conditions required. Where the sponsors/entrepreneurs need only equity support from EEF without any bank loan a Bank/FI will be nominated as representative of EEF for appraisal of the project by Bangladesh Bank (EEF). To nominate such Bank/FI, previous business relationship of entrepreneur with the Bank/FI will be considered. The Bank/FI may determine their project examination fee according to their existing rules. The sponsors/entrepreneurs will have to deposit 15% of their equity in the Bank/FI after the approval of the project by EEF Unit |
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iii.
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How much EEF assistance can you get ?
The amount of equity support from the EEF to the project, which needs finance from a bank/FI, will be of max. 49% of the total equity of the company provided that such percentage of equity support will not exceed 33.33% of the total cost of the project (including net working capital) of the company concerned. But if the company does not take any loan from bank/FI, EEF support will be of max. 49% of the total project cost from EEF. Projects whose total costs equal or exceed 20.00 crore have to take loan from Bank/FI on the existing debt-equity ratios. |
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iv.
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What to be done by the entrepreneurs?
1. Apply for EEF through a Bank/FI (Bangladesh Bank will assist you in selecting Bank if no bank loan is sought for) 2. Deposit 15% of your proposed equity to Bank/FI after the approval of the project by Bangladesh Bank 3. Execute Investment Agreement with the Bank/FI after approval of the project 4. Entrepreneurs will have to amend Memorandum & Articles of Association as per requirement of the conditions of Bangladesh Bank 5. Issue shares in favor of GOB, EEF Unit, Bangladesh Bank before fund is disbursed. 6. Buy-back the issued shares within eight years either at the face value or at the break-up value whichever is higher. |
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v.
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Steps to be taken by the Bank/FI :
1. Bank/FI will appraise the project and if it seems acceptable to Bank/FI, they will send the project profile with their recommendations including relevant papers to Bangladesh Bank EEF unit. 2. Bank/FI will preserve the issued share certificates received from the company on behalf of Bangladesh Bank. 3. The Bank/FI shall nominate its representative, on behalf of the Bangladesh Bank (EEF unit) on the company's Board of Directors to attend the meetings as well as in the meetings of the company's shareholders. 4. The Bank/FI will monitor the business of the company regularly and send quarterly report to EEF |
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EDF (Export Development Fund )
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Export
Development fund available at Bangladesh Bank for export at a lower rate of
interest. This fund administrated by the Department of Banking Operation and
Development of Bangladesh Bank. BTB LC will be opened on deferred basis.
Interest/additional amount the usance period shall not exceed LIBOR or the
equivalent interest/additional in the currency of settlement.
After
opening BTB LC, statement should be sent to Bangladesh Bank. Then Bangladesh
Bank will provide fund for payment of BTB LC subject to availability of the
fund with them. The fund allotted in favour of AD branch for a period of 180
days to 270 days.
On
execution of export as well as realization of proceeds the same to be
refunded to BB with additional amount plus interest as per rate quoted by BB.
The rate of additional amount is LIBOR + 1%.
If
the exporter fails to execution export, the AD will repay the same to
Bangladesh Bank.
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What is
security?
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Security means things deposited as a
guarantee of an undertaking/loan, to be forfeited in case of default.
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What is
charge?
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It is a legal transaction as a result
of which the lender acquires certain rights over the property and the
borrower is refrained from dealing in them.
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What is
charge creation over securities?
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Charging a security means making it
available as a cover for an advance.
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What is
document?
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It means written record, which
serves as an evidence in respect of a transaction.
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What is
documentation?
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Documentation is the process of
execution of documents in right form and in lawful manner.
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What is
Pari-passu charge?
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Pari-passu charge over the assets of
the borrower means that the lenders are entitled to have equal rights over
the assets as per the agreed share.
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Method
of creating charge on security: (i)
Pledge, (ii) Hypothecation, (iii) Mortgage, (iv) Lien,
(v)
Assignment & (vi) Set-Off.
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The
method of charging used depends upon:
n
The type of property to be charged
n
The nature of the advance
n
The degree of control over the debtor’s property
required by the banker.
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Pledge:
Pledge is the bailment of goods as security for payment
of a debt or performance of a promise.
Bailment:
Bailment is the delivery of goods by one person to another for some purpose,
under a contract the goods
shall, when the purpose is accomplished, be returned or
otherwise disposed of, according to the directions of the person delivering
them.
§ Always
based on contract.
§ Movable
properties only (Money is excluded)
§ Delivery
of goods is essential (Transfer of possession)
§ Ownership
is not transferred but only special right of retaining the goods until
payment of debt.
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Hypothecation: Hypothecation
is a charge against property for an amount of debt where neither ownership
nor possession is passed to the creditor.
§
It is floating charge, it is rather precarious
& Borrower binds himself to give possession of the hypothecated goods to
the bank when called upon to do so.
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Mortgage: Mortgage is transfer of
interest in specific immovable property for the purpose of securing the
payment of money advanced or to be advanced by way of loan, an existing or
future debt or the performance of an engagement which may give rise to
pecuniary liability.
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Types of Mortgage:
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§
Simple
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§
Conditional Sale
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§
Usufructuary
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§
English
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§
Anomalous
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Lien: A lien is the right of a creditor in possession
of goods, securities or any other assets belonging to the debtor to retain them until the debt is
repaid.
Negative
Lien: The banker sometimes asks a borrower to execute a
letter declaring that his assets are free from encumbrance at the time
advance is made. The borrower is also undertakes that the assets stated
in the said letter shall not be encumbered or disposed of without the Bank’s permission in
writing so long the advance continues. This undertaking is a Negative Lien.
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Set-Off: A
set-off is a right which enables a creditor to adjust wholly or partially a
debt balance in the debtors account with any credit balance lying in his
(debtors) favour.
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Assignment: An assignment means a
transfer of right of property or debt (existing or future) by one person to
another person.
The most common types of assignment in banks are:
Assignment as security is not a good one due to following reasons:
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A lien differs in that while it is a creation of
law under certain circumstances without any agreement whatsoever between the
parties, all others originate as a result of agreement of the parties. Then,
it is a defensive right, not enforceable at a court of law, while others are
positive rights.
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Hypothecation
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Pledge
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Constructive delivery of possession
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Physical delivery of possession
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A hypothecatee can not sell goods without
obtaining a decree of the court.
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Possible to sell goods without obtaining a decree
of the court after giving a reasonable notice to the pledgor.
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Artha
Rin Adalat Ain, 2003:
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An act to amend and consolidate the existing law
relating recovery of loans of financial institutions.
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Section-12: Sale of
certain mortgaged property by the financial institutions.
i.
Subject to provision of sub-section 2 below, if a
financial institution wants to sell any property of the defendant which have
been mortgaged or kept lien or pledge when taking loan and plaintiff has
legal rights to sell the same or the same has been placed under the disposal
of the plaintiff, the plaintiff shall not file any suit in the Artha Rin
Adalat until the same has not been sold or adjusted with the loan so granted
to the defendant.
ii.
Despite the provision of sub-section (i), if any
financial institution file any suit in the Artha Rin Adalat without selling
any mortgaged property though it was not under his passion and control, and
the same shall be sold according to system mentioned earlier and the amount
so received by selling should be adjusted against the debt and the same
should immediately be brought to the notice of the Court.
iii.
When any financial institution granted loan to a
defendant under mortgage of immovable or hypothecated movable property and
has been empowered to sell the aforesaid property by Power of Attorney at the
time of mortgage, shall not file any suit in the Artha Rin Adalat until such
property has been sold and has not been adjusted the sold amount so received
against any debt or has failed to sell the property;
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Section-28: Time limit
for execution of decree
i.
Despite any other provisions being contained in
the Limitation Act, 1908 and the Code of Civil Procedure, 1908, if the
decree-holder wants the execution of decree, subject to the provision of
Section-29, shall file an execution suit within the maximum period of 180
days for execution.
ii.
If the suit is filed for execution of decree
after expiry of 180 days disregarding the provision as provided under
sub-section (i), shall be barred by limitation and shall out right be
rejected without being taken for any consideration.
iii.
If any second suit or any other subsequent suit
is filed for execution after one year of rejection or disposal, the self same
suit shall be barred by limitation and summarily be rejected without being
considered.
iv.
If any new suit for execution of decree is filed
after expiry of 6 (six) years of filing
the first execution suit, the same shall be barred by limitation.
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Section-29: Special
provision relating to time limit
If the Court has fixed when
passing the decree for making payment of decreetal amount at a time or in
installments, the time limit as shown at Section 28(i) shall be effective
after expiry of the said time limit.
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Section-46: Special
provisions and time limit for filing suit
i Anything otherwise contained in the
Limitation Act, 1908 provisions of subject to the provision of
sub-
section (ii) above, a financial institution shall file a suit after
expiry of next one year, if a borrower fails
to pay back the loan according to the terms
of agreement after starting payment
schedule as follows:
a) Al
least 10% amount of one years payable loan.
b) At
least 15% amount over the 2 years payable loan.
c) Al
least 25% amount over the payable 3 years loan.
ii.
If the
financial institution, in the mean time, have made re-schedule for payment of
loan within aforesaid time limit at shown at sub-section
(i), subject to the necessary mutatis mutandis shall be effective a new.
iii. In
case the duration of total repayment schedule is less than three years as
provided under the provision of sub-section (i) and the amount of
recovery in the said period is less than 20%, the financial institution shall
file the suit after expiry of one year of that repayment schedule
according to the provision of sub-section (iv).
iv. Provided,
the financial institution has rescheduled for making payment in the mean
time, according to the provision of sub-section (iii), the provisions of the
said sub-section- (iii) subject to mutatis mutandis shall be effective, a
new.
v. If
the suit is filed after expiry of the time limit as specified at sub-section
(i) or (ii) as may be applicable, the court shall immediately communicate the
matter to the Chief Executive of the concerned financial institution in writing and if the suit has not been
filed for negligence of any officer of the said organization, the competent
authority shall take disciplinary and penal action against the officer
responsible for such lapse and the Govt. and the court shall be communicated
within 90 days of being informed of the matter of the punishment so taken
under the aforesaid sub-section.
vi. The
provisions of this Section shall be effective after one year of coming this
Act in force. Provided that, if any financial institution wants to implement
the provisions of this sub-section before one year, shall be able to do this.
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Section- 47: Limitation
in imposing claim
i.
Anything contained in any other laws now in force
or whatever may contain in the agreement
between the parties, no Artha Rin Adalat shall impose any claim upon any
borrower shall not charge such interest which shall be equivalent to more
than 200% (100+200=Tk.300) of the capital.
ii.
The Court shall not entertain any such claim
which shall be more than 200% of the capital as described under the provision
of this sub-section (i).
iii.
The provision of this section shall be effective
after one year of enforcing the provisions of this Act. Provided that any
financial institution is empowered to implement the provisions of this
section before implementing the provisions of this Act.
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Cash
flow:
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The statement is designed to identify all
activities related with cash transactions and shows the net effect on the
cash balance during a period of time. In other words, by cash flow statement
we show inflow and outflow of cash and thereby net position of cash during a
certain period.
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In cash flow statement all the activities are
categorized into 3 groups:-
1.
Operating
Activities: Cash flow from Operating Activities are
generally derived from the principal revenue
producing
activities of an enterprise. Therefore, they generally result from the
transactions and other events
that enter
into the determination of net profit.
2.
Investing
Activities: Cash flows represent the extent to which
expenditures have been made for resources
intend
to generate future income and cash flows.
3.
Financing
Activities: It is useful in predicting claims on future cash
flows by providers of capital to the
enterprise.
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Cash flow statement is prepared (basically
operating activities) using two methods:-
i)
Direct
Method: whereby
major classes of gross cash receipts and gross cash payments are disclosed.
ii) Indirect Method: whereby net profit or loss adjusted for the effect of transactions
of a non-cash nature, any
deferrals
or accruals of past or future operating cash receipts or payments, and items
of income or expenses
associated
with investing or financing cash flows.
A
cash flow statement helps management in the area of financial planning and
control. In other words, it can serve the following purposes:-
a) A
cash flow statement gives management a better idea as to the nature of cash
transactions and their impact on cash balance.
b) In
case of surplus of cash, it helps management to take investment decisions.
c) In
case of shortage of cash, it helps management to take financing decisions.
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Operating Activities:
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Net
Earning
Plus:
Depreciation & Write-offs
Plus:
Appropriation items i.e. Dividend, Transferred to General Reserves etc.
Plus/Minus:
Other Non-Operating Adjustments
(Increase)/Decrease
in Receivables
(Increase)/Decrease
in Marketable Securities
(Increase)/Decrease
in Inventory
Increase/(Decrease)
in Accounts Payables (Trade)
Increase/(Decrease)
in Provision for Taxes
(Increase)/Decrease
in All other Current Asset (Except Cash & Bank Balance)
Increase/(Decrease)
in All other Current Liability
Net Cash Flow from Operating
Activities
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Investment Activities:
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(Increase)/Decrease
in Land & Building
(Increase)/Decrease
in Plant & Machinery
(Increase)/Decrease
in Equipment
(Increase)/Decrease
in Furniture & Fittings
(Increase)/Decrease
in All other Current Asset
Net Cash Flow from Investment
Activities
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Financing Activities:
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Increase/(Decrease)
in Capital
Increase/(Decrease)
in Long Term Loan, Debenture/Bond
Increase/(Decrease)
in Over Draft & Cash Credit
Short
Term Loans & Current Portion of Long Term Loans
Increase/(Decrease)
in All other Non-Current Liability
Minus
Dividend Paid
Net Cash Flow from Financing
Activities
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Net
Cash Flow
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Plus
Opening Cash & Bank Balacne
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Closing
Cash Balance
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Project:
|
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Project
is such activity to achieve some predetermined goal by using particular
resources in a particular period.
|
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Aspects of a
Project:
|
|
(i)
Management aspect, (ii) Marketing aspect, (iii) Technical aspect, (iv)
Financial aspect & (v) Economical aspect
|
|
What is UCP?
|
|
The
Uniform Customs and Practice for Documentary Credits, 2007 Revision, ICC
Publication no. 600 (“UCP”) are rules that apply to any documentary credit
(“credit”) (including, to the extent to which they may be applicable, any
standby letter of credit) when the text of the credit expressly indicates that
it is subject to these rules. They are binding on all parties thereto unless
expressly modified or excluded by the credit-
UCP is the internationally recognized set of
rules governing the use of letters of credit also known as documentary
credits. UCP is written into virtually every letter of credit and accepted
worldwide
|
|
Why do the UCP rules
change?
|
|
The UCP rules were first published in 1933, and
revised by the ICC in 1951, 1962, 1974, 1983 and 1993. This latest revision
of the rules is the first to take place since 1993, and represents more than
three years of work by the International Chamber of Commerce (ICC). The ICC
claims that UCP 600 will be ‘modern rules for a changing world’
|
|
Who will be affected by
the changes?
|
|
The changes from UCP 500 will have a considerable
effect on all those involved in trading internationally who use letters of
credit to arrange their payments. Exporters, importers, bankers, lawyers and
transporters of goods will all need to refer to the new rules come July
|
|
What are the changes?
|
|
The ICC summarises the changes as:
|
|
What are the new definitions?
|
|
The new definitions are an attempt
to avoid the various interpretations made by individual banks and/or their
employees to delay or prevent acceptance of documents as well as clarify some
terms.
The definitions include: |
|
Confirmation: means a definite undertaking of the
confirming bank, in addition to that of the issuing bank, to honour or
negotiate a complying presentation.
|
|
Honour:
|
|
Negotiation: means the purchase by the
nominated bank of drafts (drawn on a bank other than the nominated bank) and/
or documents under a complying presentation, by advancing or agreeing to
advance funds to the beneficiary on or before the banking day on which
reimbursement is due to the nominated bank.
|
|
What is
included in the expanded discussion of original documents?
|
|
Article 17, entitled ‘Original Documents and Copies’
includes a new clause, which states that ‘at least one original of each
document stipulated in the credit must be presented’.
|
|
What other
key changes are there?
|
|
Article #
|
Title of Article
|
Article #
|
Title of Article
|
|
Article-1
|
Application of UCP
|
Article-21
|
Non-Negotiable Sea Waybill
|
|
Article-2
|
Definitions
|
Article-22
|
Charter Party Bill of Lading
|
|
Article-3
|
Interpretations
|
Article-23
|
Air Transport Document
|
|
Article-4
|
Credits v. Contracts
|
Article-24
|
Road, Rail or Inland Waterway Transport
Documents
|
|
Article-5
|
Documents v. Goods, Services or Performance
|
Article-25
|
Courier Receipt, Post Receipt or Certificate of
Posting
|
|
Article-6
|
Availability, Expiry Date and Place for
Presentation
|
Article-26
|
"On Deck", "Shipper's Load
and Count", “Said by Shipper to Contain” and Charges Additional to
Freight
|
|
Article-7
|
Issuing Bank Undertaking
|
Article-27
|
Clean Transport Document
|
|
Article-8
|
Confirming Bank Undertaking
|
Article-28
|
Insurance Document and Coverage
|
|
Article-9
|
Advising of Credits and Amendments
|
Article-29
|
Extension of Expiry Date or Last Day for
Presentation
|
|
Article-10
|
Amendments
|
Article-30
|
Tolerance in Credit Amount, Quantity and Unit
Prices
|
|
Article-11
|
Teletransmitted and Pre-Advised Credits and
Amendments
|
Article-31
|
Partial Drawings or Shipments
|
|
Article-12
|
Nomination
|
Article-32
|
Installment Drawings or Shipments
|
|
Article-13
|
Bank-to-Bank Reimbursement Arrangements
|
Article-33
|
Hours of Presentation
|
|
Article-14
|
Standard for Examination of Documents
|
Article-34
|
Disclaimer on Effectiveness of Documents
|
|
Article-15
|
Complying Presentation
|
Article-35
|
Disclaimer on Transmission and Translation
|
|
Article-16
|
Discrepant Documents, Waiver and Notice
|
Article-36
|
Force Majeure
|
|
Article-17
|
Original Documents and Copies
|
Article-37
|
Disclaimer for Acts of an Instructed Party
|
|
Article-18
|
Commercial Invoice
|
Article-38
|
Transferable Credits
|
|
Article-19
|
Transport Document Covering at Least Two Different Modes of
Transport
|
Article-39
|
Assignment of Proceeds
|
|
Article-20
|
Bill of Lading
|
|
|
Many of the articles have simply been reworded or amended
to make the meaning clearer. Some of the articles from UCP 500 have been
condensed while some have had extra clauses added to clarify certain points.
One example is Article 7, entitled ‘Issuing Bank
Undertaking’. This has a new clause (b), which states ‘An issuing bank is
irrevocably bound to honour as of the time is issues the credit’.
In
general, UCP600 is easier to read than UCP500. It is more direct and also
addresses a number of issues that have been causing problems over the last few
years.
Export and
Import Policy 2006-09
|
Highest Priority Sector
n
Software
& ICT products
n
Agro
products & processing
n
Light
engineering
n
Shoes
& Leather products
n
Pharmaceuticals
products
n
Textiles
products
|
Special Priority Sector
n
Finished
Leather
n
Frozen
Food
n
Electrical
Goods
n
Fresh
Flower
n
Jute
Goods
n
Herbal
Medicine
|
Import Policy 2006-09
|
Import Procedure
n
Procurement
of IRC
n
Signing
purchase contract
n
Open
LC an Irrevocable
n
Advise
LC
n
Shipment
of Goods
n
Negotiation
of the documents
n
Payment
and Settlement
n
HS
code no.
n
Pre-inspection
n
Country
of origin
n
Enlistment
of Importers name, Address, TIN
n
Use
of Letter of Credit
n
Exception
of Use of Letter of Credit
n
Origin
of Goods and Shipment
n
Antropo
Trade
n
Import
for Re export
n
No
IRC required for import of Capital
Machineries
for New Industry
n
Import
at a Competitive Rate
|
Import Restricted Items
n
Harmful
journals, books, audio, video etc.
n
Reconditions
Office equipment
n
Disposable
products.
n
Products
harmful for the religion
n
Egg
n
Pig
and Pig related products.
Documents to be submitted to obtain IRC
n Income
Tax Certificate
n Certificate
from Chamber of Commerce
n Bank
Solvency Certificate
n Copy
of Trade License
n Any
other documents required by CCI&E
n Asset
Certificate
n Affidavit
from 1st class Magistrate
n
Partnership Deed,MOA and AOA
|
Export Policy 2006-09
|
Objective of Export Policy
n
Liberalization
of Trade
n
Encourage
labour intensive industry
n
Ensuring
availability of raw materials
to
produce exportable goods
n
Increasing
productivity and diversification
n
Use
environmental friendly technology
n
Assistance
for developing backward linkage
n
Disseminating
information regarding rules
and
procedure of international trade.
|
List of Prohibited Goods for Export
n
Petroleum
and Petroleum Products
n
Jute
seed, Wheat seed, Pulse, Onion
n
Living
animals and Skins, Bon etc.
n
Fire
Arms, ammunitions
n
Radio
Active Materials
n
Archeological
Objects
n
Raw
and wet blue leather
n
Urea
fertilizer
n
All
kinds of bamboo, wood, cane
|
|
Export Procedure
n
Procurement
of ERC
n
Registration
Renewal
n
Securing
Order
n
Signing
the Contract
n
Receiving
Letter of Credit
n
Procuring
Materials
n
Shipment
of Goods
n
Preparation
of Export documents
n
Submission
of Documents fro Negotiation.
|
|
Acts:
|
6
(six) Core Risks
|
||
|
vii.
|
Negotiable
Instrument Act
|
1881
|
n
Investment (Credit) Risk
|
|
viii.
|
Bank
Company Act
|
1991
|
n
Foreign Exchange Risk
|
|
ix.
|
Financial
Institution Act
|
1993
|
n
Asset Liability/Balance Sheet Management
|
|
x.
|
Company
Act
|
1994
|
n
Internal Control and Compliance
|
|
xi.
|
Bankruptcy
Act
|
1997
|
n
Money Laundering
|
|
xii.
|
Anti
Money Laundering Act
|
2002
|
n
Information Technology (IT) Risk
|
|
xiii.
|
Artha
Rin Adalat Ain
|
2003
|
|
|
xiv.
|
Transfer
of Property Act
|
1882
|
|
|
xv.
|
Money
Loan Court Act
|
2003
|
|
|
xvi.
|
Foreign
Exchange Regulation Act
|
1947
|
|
|
Chain of documents
|
|||
|
i.
|
Original
Title Deed.
|
||
|
ii.
|
Bia-Deed
(if applicable).
|
||
|
iii.
|
C.S
(1936-1946), S.A (1962) and R.S (Bangladesh) Parcha., Math Jarip/
Parch (Latest)
|
||
|
iv.
|
Mutation
Parcha with D.C.R.[Rgv fv‡Mi iwk`; Gwm (j¨vÛ)-Gi ¯^v¶i _v‡K]
|
||
|
v.
|
Up
to date rent receipt.
|
||
|
vi.
|
Municipal
Tax receipt (if applicable).
|
||
|
vii.
|
Non-Encumbrance
Certificate with Govt. receipt.
|
||
|
viii.
|
Succession
Certificate, if required
|
||
1. eÜKx `wjj †iwR‡óªk‡bi Rb¨ m‡e©v”P wd
5,000.00 UvKv Ges me©wbgœ wd 200.00 UvKv wba©viY K‡i †`qv n‡q‡Q
(section
78 A(c) of Registration Act) A_©vr
|
wewb‡qvM mxgv 5.00 j¶ UvKv ch©š—
|
t
|
†iwR‡óªkb
wd me©wbgœ 200.00 UvKv; m‡e©v”P 500.00 UvKv
|
|
wewb‡qvM
mxgv 5.00 j¶ UvKvi D‡×© 20.00 j¶ UvKv ch©š—
|
t
|
†iwR‡óªkb
wd me©wbgœ 1500.00 UvKv; m‡e©v”P 2000.00 UvKv
|
|
wewb‡qvM mxgv 20.00 j¶
UvKvi D‡×©
|
t
|
†iwR‡óªkb
wd me©wbgœ 3000.00 UvKv; m‡e©v”P 5000.00 UvKv
|
*Deed-Gi date ‡_‡K 120 w`‡bi g‡a¨ gU©‡MR Kiv hvq|
2. ‡iwRwóªK…Z eÜKx `wjj e¨wZ‡i‡K †Kvb eÜK AvBbZt
ˆea n‡e bv| ZvQvov eÜKx †Kvb m¤úwË eÜK MÖnxZvi wjwLZ m¤§wZ e¨wZ‡i‡K weµq ev
wØZxq ev‡ii gZ eÜK cÖ`vb Kiv hv‡e bv g‡g©I weavb Kiv n‡q‡Q (Section 53D of Transfer of
Property Act)|
Dc‡iv³ ms‡kvabx AvBb `ywU 1jv
RyjvB 2005Bs Zvwi‡L Kvh©Ki n‡e|
A transfer deeds must be registered with the Office of the Sub-Registrar
within 90 days from the date of execution.
Stamp for Mortgage |
||
|
i.
|
Up
to Tk 10,00,000/-
|
1,500/-
|
|
ii.
|
Tk
10,00,001/- to Tk 50,00,000/-
|
3,500/-
|
|
iii.
|
Tk
50,00,001/- and above
|
3,500/- + 0.1% maximum 48,000/-
|
Stamp for other documents |
||
|
i.
|
Power
of attorney (including affidavit)
|
250/-
|
|
ii.
|
Deed
of agreement
|
150/-
|
|
iii.
|
Deed
of redemption
|
150/-
|
|
iv.
|
Letter
of Indemnity
|
150/-
|
|
v.
|
Letter
of guarantee
|
150/-
|
|
vi.
|
Letter
of undertaking
|
150/-
|
|
vii.
|
Letter
of hypothecation
|
150/-
|
|
viii.
|
Letter
of pledge
|
150/-
|
|
ix.
|
Letter
of continuity
|
150/-
|
|
x.
|
Stock
ownership declaration
|
150/-
|
Stamp for other documents |
||
|
xi.
|
Stock
delivery letter
|
150/-
|
|
xii.
|
Affidavit
|
50/-
|
|
xiii.
|
Certified
copy
|
20/-
|
|
xiv.
|
D.P.
(Demand Promissory-single) Note
|
20/-
|
|
xv.
|
D.P.
(Demand Promissory-joint) Note
|
20/-
|
|
xvi.
|
Balance
confirmation
|
4/-
|
In
case of company charge shall be created with the Registrar of Joint Stock
Companies & Firms (RJSC) within 21 days from the date of execution of the
relative charge documents.
|
1st charge
|
||
|
1st
charge to be created within 21 days from the date of execution of documents.
|
||
|
i.
|
Fresh
|
Form-XVIII
|
|
ii.
|
Enhancement/Modification
|
Form -XIX
|
|
iii.
|
Redemption
|
Form -XXVIII
|
Expenditure |
||
Value of Forms |
5.00
|
|
|
Stamp
|
150.00
|
|
|
Charge
creation fee
|
||
|
i.
|
5,00,000.00
|
50.00
|
|
ii.
|
10,00,000.00
|
90.00
|
|
iii.
|
15,00,000.00
|
130.00
|
|
iv.
|
20,00,000.00
|
170.00
|
|
v.
|
25,00,000.00
|
210.00
|
|
vi.
|
30,00,000.00
|
250.00
|
|
vii.
|
35,00,000.00
|
290.00
|
|
viii.
|
40,00,000.00
|
330.00
|
|
ix.
|
45,00,000.00
|
370.00
|
|
x.
|
50,00,000.00
|
410.00
|
|
xi.
|
Then
Tk 20.00 for each 5.00 lac
|
|
|
xii.
|
Redeemption
fee Tk 20.00
|
|
For classification, entire Investments are divided as under: |
|
|
1.
|
Continuous
|
|
2.
|
Demand
|
|
3.
|
Term
|
|
4.
|
Short Term Agricultural and Micro-Credit
|
Basis for Investment classification: |
|
Objective (overdue) criteria
|
|
Qualitative Judgement
|
|
|
Determination of Investment classification status: |
|||
Nature of Investment |
Status |
||
|
Continuous &
Demand
|
Term Loan
|
||
|
Up to 5 years
|
Above 5 years
|
||
|
Below
3 month’s of overdue
|
Below
3 month’s of overdue installment
|
Below
3 month’s of overdue installment
|
STD
(Standard)
|
|
3
to below 6 month’s of overdue
|
3 to below 6 month’s of overdue
installment
|
3
to below 12 month’s of overdue installment
|
SMA
(Special Mention Account) but UC
|
|
6
to below 9 month’s of overdue
|
6 to below 12 month’s of
overdue installment
|
12
to below 18 month’s of overdue installment
|
SS
(Sub-Standard)
|
|
9
to below 12 month’s of overdue
|
12
to below 18 month’s of overdue installment
|
18
to below 24 month’s of overdue installment
|
DF
(Doubtful)
|
|
12
& above month’s of overdue
|
18
& above month’s of overdue installment
|
24
& above month’s of overdue installment
|
BL
(Bad & Loss)
|
Charging of Profit and treatment thereagainst: |
|
|
STD
|
Profit to be charged in the Investment account
and the same to be transferred to Income account.
|
|
SMA
|
Profit to be charged in the Investment account
and the same to be transferred to suspense account.
|
|
SS
|
|
|
DF
|
|
|
BL
|
No profit to be charged in the Investment
account.
|
Rate & Formula of Provisioning: |
|
|
STD
|
Outstanding X 1% (Other than Small Business and
Consumer Financing).
|
|
Outstanding X 2% (Small Business)
|
|
|
Outstanding X 2% (PL& HF under Consumer
Finance).
|
|
|
Outstanding X 5% (Consumer Financing Other than
PL& HF).
|
|
|
SMA
|
(Outstanding-Profit Suspense) X 5%
|
|
SS
|
(Outstanding-Profit Suspense-Eligible
Securities) X 20%
|
|
DF
|
(Outstanding-Profit Suspense-Eligible
Securities) X 50%
|
|
BL
|
(Outstanding-Profit Suspense-Eligible
Securities) X 100%
|
|
0.50% of outstanding amount of Non-funded
facility to be kept as provision for December’07.
1% of outstanding amount of Non-funded facility
to be kept as provision for each quarter
|
|
Securities
to be considered as Eligible:
|
||
|
i.
|
Against
pledged & lined Deposit
|
100%
|
|
ii.
|
Against gold
& gold ornaments
|
100%
|
|
iii.
|
Against
pledged & licensed Government Bond
|
100%
|
|
iv.
|
Against
guarantee of Government body or Bangladesh Bank
|
100%
|
|
v.
|
Against market
value of easily saleable pledged goods
|
50%
|
|
vi.
|
Against market
value of mortgaged land & buildings
(excluding
semi pucca building)
|
50%
|
Facility may be/must not be allowed |
|
|
UC
|
May be allowed if otherwise in order.
|
|
SMA
|
May be allowed if otherwise in order.
|
|
SS
|
Must
not be allowed.
|
|
DF
|
Must
not be allowed.
|
|
BL
|
Must
not be allowed.
|
Rate of down Payment against Re-scheduling: |
|||||
|
i.
|
Term Investment |
1st time |
15% of overdue or 10% of outstanding, which ever is lower. |
||
2nd time |
30% of overdue or 20% of outstanding, which ever is lower. |
||||
3rd time |
50% of overdue or 30% of outstanding, which ever is lower. |
||||
|
ii.
|
Continuous
& Demand
|
1st time |
Up to Tk 1.00 crore |
15% |
|
Tk 1.00 crore to Tk 5.00 crore |
10% but minimum Tk 15.00 lac. |
||||
Tk 5.00 crore & above |
5% but minimum Tk 50.00 lac. |
||||
2nd time |
30% of overdue or 20% of outstanding, which ever is lower. |
||||
3rd time |
50% of overdue or 30% of outstanding, which ever is lower. |
||||
|
iii.
|
Continuous
to Term Investment
|
1st time |
20% of outstanding. |
||
2nd time |
30% of overdue or 20% of outstanding, which ever is lower. |
||||
3rd time |
50% of overdue or 30% of outstanding, which ever is lower. |
||||
Write
Off:
|
i.
|
At any time in case of Bad & Loss account;
but mandatory in case of 5 years elapsed as Bad & Loss account and is duly provisioned 100%
thereagainst.
|
|
ii.
|
If provision in less than 100%, the Bad &
Loss account may be written off by debiting Income account of the year.
|
|
iii.
|
All efforts to be continued for realization of
written off investment. Legal action to be taken against the account to be
written off, if not done earlier.
|
|
iv.
|
Responsibilities to be transferred to a separate
debt collection unit of the Bank.
|
|
v.
|
External firms may be engaged for expediting the
settlement of lodged cases or recovering the written off investment.
|
|
vi.
|
The accounts of written off investment to be
maintained in separate ledger and the accumulated as well as current year’s
written off investment to be incorporated in the Balance Sheet of the Bank
separately under “notes to the accounts”
|
|
vii.
|
Though written off, reporting to be made to CIB,
Bangladesh Bank as Defaulter.
|
|
viii.
|
Permission to be taken from Bangladesh Bank, in
case of Director’s related Investment (present/previous).
|
|
CIB Inquiry Forms:
|
|
|
i.
|
CIB-1A
(For Individual/Institution)
|
|
ii.
|
CIB-2A
(For owner information if borrower is Institution) along with Undertaking Ka
|
|
iii.
|
CIB-3A
(Information of group/related business concern)
|
|
CIB Reporting Forms:
|
|
|
i.
|
CIB-1
(Borrower Information-Borrowers only)
|
|
ii.
|
CIB-2
(Borrower Information-Owners only)
|
|
iii.
|
CIB-3
(Borrower Information-Group only)
|
|
iv.
|
CIB-4
(Credit Exposure Matrix)
|
|
v.
|
CIB-5
(Guarantor Information)
|
†Ljvcx FY MÖnxZv A_© †Kvb e¨w³ ev cÖwZôvb hvnvi
wb‡Ri ev ¯^v_© mswkó cÖwZôv‡bi AbyK~‡j cÖ`Ë AMÖxg, FY ev Dnvi Ask ev Dnvi Dci
AwR©Z my` evsjv‡`k e¨vsK KZ…©K RvixK…Z msÁv Abyhvqx †gqv‡`vËxY© nIqvi 6 gvm
AwZevwnZ nBqv‡Q|
Z‡e, kZ©
_v‡K †h, †Ljvcx FY MÖnxZv †Kvb cvewjK
wjwg‡UW †Kv¤úvbxi cwiPvjK bv nB‡j A_ev D³ †Kv¤úvbx‡Z Zvnvi †kqv‡ii Ask 25% Gi
AwaK bv nB‡j, D³ cvewjK wjwg‡UW †Kv¤úvbx ¯^v_© mswkó cÖwZôvb ewjqv MY¨ nB‡e
bv|
Av‡iv
kZ© _v‡K †h, cvewjK wjwg‡UW †Kv¤úvbx e¨ZxZ Ab¨ †Kvb cÖwZôv‡b FY MÖnxZvi †kqv‡ii
Ask AbwaK 20% nB‡j D³ cÖwZôvb GB `dvi Aaxb ¯^v_© mswkó cÖwZôvb ewjqv MY¨ nB‡e
bv|
Large
Loan/Investment:
e„n`v¼ wewb‡qvM myweav cÖ`v‡bi ‡¶‡Î DbœZZi SyuwK
e¨e¯’vcbv wbwðZKi‡Yi j‡¶¨ Ges wewb‡qv‡Mi ‡K›`ªxf~ZKiY ‡ivaK‡í evsjv‡`k e¨vsK
weAviwcwW mvKz©jvi bs-05 ZvwiLt 09/04/2005Bs Ges ciewZ©‡Z mvK©yjvi bs-06 ZvwiL
26/04/2005Bs gvidZ GKK MÖvn‡Ki AbyK‚‡j m‡ev©”P cwigvb wewb‡qvM myweav cÖ`v‡bi
‡¶‡Î evsjv‡`k e¨vsK Master
Circular Bmy¨
K‡i‡Q, hvi GKwU K‡i Kwc m`q AeMwZi Rb¨ mshy³ Kiv n‡jv| GB mvKz©jvi `ywUi gva¨‡g
e„n`v¼ wewb‡qvM cÖ`v‡bi ‡¶‡Î weAviwcwW mvKz©jvi bs-8 ZvwiL 18 gvP© 2003 G ewY©Z
eZ©gvb bxwZgvjv cwieZ©b K‡i GKK MÖvn‡Ki AbyK‚‡j ‡gvU wewb‡qvM myweavi m‡ev©”P
mxgv e¨vs‡Ki ‡gvU g~ja‡bi 50% ‡_‡K Kwg‡q 35% G wba©viY
Kiv n‡q‡Q| Av‡jvP¨ Master Circular-wU‡Z ewY©Z g~j cÖwZcv`¨ welq wbgœiƒct
- ‡Kvb e¨w³ ev cÖwZôvb ev MÖ“cf~³ cÖwZôv‡bi AbyK‚‡j ‡Kvb e¨vsK ‡Kvb mgqB Zvi ‡gvU g~ja‡bi 35% Gi ‡ekx AwZµg Ki‡e bv| Z‡e kZ© _v‡K ‡h, m‡e©v”P cÖZ¨¶ (Funded facilities) wewb‡qvM myweav ‡Kvb µ‡gB ‡gvU g~ja‡bi 15% Gi ‡ekx AwZµg Ki‡e bv|
- ‡Kvb e¨w³ ev cÖwZôvb ev MÖ“cf~³ cÖwZôv‡bi AbyK‚‡j c‡iv¶ (Non-Funded facilities) wewb‡qvM myweav ‡hgb Gjwm, M¨vivw›U BZ¨vw` cÖ`vb Kiv hv‡e Z‡e ‡Kvb µ‡gB cÖZ¨¶ I c‡iv¶ (Funded and Non-Funded facilities) wewb‡qvM myweav ‡Kvb mgqB e¨vs‡Ki ‡gvU g~ja‡bi 35% AwZµg Ki‡e bv|
Z‡e
ißvbx Lv‡Zi ‡¶‡Î Master Circular-wU‡Z
wKQy e¨wZµg Av‡Q| GB Lv‡Z wewb‡qv‡Mi ‡¶‡Î ‡Kvb GKK MÖvn‡Ki AbyK‚‡j ‡gvU
wewb‡qvM myweavi m‡ev©”P cwigvb c~‡e©i b¨vq e¨vs‡Ki ‡gvU g~ja‡bi 50%-B ejer
_vK‡e| Z‡e cÖZ¨¶ (Funded facilities)
wewb‡qvM myweavi m‡ev©”P cwigvb 25% Gi cwie‡Z© 15% n‡e|
3. ‡Kvb
e¨w³ ev cÖwZôvb ev MÖ“cf~³ ms¯’v‡K D³ e¨vs‡Ki ‡gvU g~ja‡bi 10% ev Z`yaŸ© cwigvb
gÄyixK…Z wewb‡qvM myweav e„n`v¼ wewb‡qvM wnmv‡e MY¨ n‡e|
4. e¨vsK
mg~n ¯^-¯^ e¨vs‡Ki ‡kªYxK…Z wewb‡qv‡Mi wfwˇZ wbgœ ewY©Z mxgv Abyhvqx e„n`v¼
wewb‡qvM myweav gÄyi Ki‡Z cvi‡et
|
bxU ‡kªYxK…Z wewb‡qv‡Mi nvi
|
‡gvU wewb‡qvM I AwMÖ‡gi mv‡_
e„n`v¼ wewb‡qv‡Mi m‡ev©”P wba©vwiZ nvi
|
|
5%
|
56%
|
|
5% Gi ‡ekx wKš‘ 10% ch©š—
|
52%
|
|
10% Gi ‡ekx wKš‘ 15% ch©š—
|
48%
|
|
15% Gi ‡ekx wKš‘ 20% ch©š—
|
44%
|
|
20% Gi ‡ekx
|
40%
|
5. †h mKj
cvewjK wjwg‡UW †Kv¤úvbxi cvewjK Bm~¨R Gi cwigvb 50 kZvsk ev Z‡ZvwaK †m mKj
cvewjK wjwg‡UW †Kv¤úvbx ÒMÖ“cÓ Gi AvIZv
ewnf©~Z n‡e|
6. ‡h me
wewb‡qvM myweavi wecix‡Z bM` A_© I bM`vqb‡hvM¨ RvgvbZ (Encashable security) i‡q‡Q
‡m me wewb‡qvM myweavi ‡¶‡Î iw¶Z bM` A_© I bM`vqb‡hvM¨ RvgvbZ h_vt GgwUwWAvi
(GdwWAvi) ev` w`‡q wbiƒwcZ A_©B cÖK…wZ wewb‡qvM myweav wnmv‡e MY¨ n‡e|
7. ‡Kvb
‡Ljvcx wewb‡qvM MÖnxZvi AbyK‚‡j hv‡Z ‡Kvbiƒc wewb‡qvM myweav cÖ`vb Kiv bv nq ‡m
welqwU wbwðZ Kivi j‡¶¨ e„n`v¼ wewb‡qvM gÄyi, bevqb ev cybtZdwmwjKi‡Yi c~‡e©
evsjv‡`k e¨vs‡Ki ‡µwWU Bbdi‡gkb ey¨‡iv (CIB) ‡_‡K
MÖvnK m¤ú‡K© nvjbvMv` (60 w`b c~‡e©i) wewb‡qvM Z_¨ msMÖn Kiv e¨vs‡Ki Rb¨
eva¨Zvg~jK n‡e|
8. e„n`v¼
wewb‡qvM myweav gÄyi ev bvevqb cÖ¯—ve we‡ePbvKv‡j, Ab¨v‡b¨i g‡a¨ Ab¨ e¨vsK I
Avw_©K cÖwZôv‡bi mv‡_ `vq‡`bvi cwiw¯’wZ ch©v‡jvPbvi wfwˇZ wewb‡qvM MÖnxZvi
mvgwMÖK wewb‡qvM cwi‡kv‡ai mvg_© we‡ePbv Ki‡Z n‡e|
9. wewb‡qvM
MÖnxZv Av‡e`bK…Z FY cwi‡kva Ki‡Z cvi‡e wKbv Zv wbwðZ nIqvi Rb¨ wewb‡qvM MÖnxZvi
bM` cÖevn weeiYx (Cash
Flow Statement), wbixw¶Z w¯’wZcÎ, Avq weeiYx I Ab¨vb¨ Avw_©K weeiYxmg~n
e¨vsK ch©v‡jvPbv K‡i ‡`L‡e|
Required documents to be submitted by the branch |
|
|
i.
|
Papers/information to be
submitted by the client.
|
|
ii.
|
Branch’s Proposal Form.
|
|
iii.
|
Statement of account for the last
1 (one) year.
|
|
iv.
|
Valuation certificate of
collateral in Bank’s standard format.
|
|
v.
|
Photocopy of the Financial
Obligation.
|
|
vi.
|
Copy of opinion from Bank’s
Legal Advisor (BLA).
|
|
vii.
|
CIB Inquiry Forms along with
Angikarnama “Ka”
|
|
viii.
|
Certificate regarding compliance
of documentation formalities.
|
|
ix.
|
Investment Risk Grading
|
|
x.
|
Assessment of working capital
requirement.
|
|
xi.
|
Liability position of the
client and its allied concern with our bank/other bank/Financial
Institutions.
|
|
Major
Terms of a Sanction Letter
|
|||
|
i.
|
Type of
investment
|
:
|
|
|
ii.
|
Amount
|
:
|
|
|
iii.
|
Purpose
|
:
|
|
|
iv.
|
Margin/Debt
Equity ratio
|
|
|
|
v.
|
Pricing
|
:
|
|
|
vi.
|
Mode of
disbursement
|
|
|
|
vii.
|
Mode of
repayment
|
:
|
|
|
viii.
|
Validity
|
:
|
|
|
ix.
|
Tenor
|
:
|
|
|
x.
|
Security
|
:
|
|
Documents
completed by BLA:
(i) Legal opinion, (ii) Deed of mortgage, (iii) Power of Attorney, (iv) Deed of
Agreement, (v) Personal Guarantee, (vi) Undertaking, (vii) Declaration, (viii)
Letter of satisfaction.
Type
of Investment:
(i) Bai-Murabaha, (ii) Bai-Muajjal, (iii) Musharaka, (iv) Mudaraba, (v) Leasing
(Ijara)/Hire Purchase,
(vi) Istisna’a and (vii) Bai-Salam.
Finance against
Shares/Debentures:
Value
of Shares/Debentures: Average value of last 6 months.
|
|
|
Group
– B
|
60%
|
|
|
Maximum
facility (Taka in lac)
|
100.00
|
|||
|
Other
than Member of Stock Exchange Limited
|
:
|
Group
– A
|
60%
|
|
|
Group
– B
|
60%
|
|||
|
Maximum
facility (Taka in lac)
|
35.00
|
|||
|
Precaution/control
& securities
|
i. Pledge i.e. full control over
the shares/debentures duly verified the genuineness.
ii. Irrevocable authority to
transfer the shares/debentures in favour of 3rd party.
iii. Transfer Deed (Form-117)
iv. Memorandum of deposit of
shares/ debentures.
v. Original license in favour of
member issued by Securities & Exchange Commission.
|
|||
|
|
Contract of Indemnity
|
|
Contract of Guarantee
|
|
1.
|
In a contract of indemnity there are two parties to the contract,
namely, the indemnifier (promisor) and the indemnified (promisee).
|
1.
|
In a contract of guarantee, there are three parties to the contract,
namely, the debtor, the creditor and the guarantor.
|
|
2.
|
In case of an indemnity, the promisor (indemnifier) is primarily and
independently liable to the promisee (indemnified), if the loss occurs in the
transaction.
|
2.
|
In the case of guarantee, the liability of the principal debtor is
primary, that of surety is secondary or collateral, which arises if the
principal debtor makes a default in fulfilling his obligation or
promise.
|
|
3.
|
In the contract of indemnity the liability of the indemnifier arises
only on the happening of a contingency.
|
3.
|
In the case of guarantee, there is an existing debt or obligation, the
performance of which is guaranteed by surety.
|
|
4.
|
In the contract of indemnity, indemnity is given or, obligation is
undertaken, without any request, expressed or implied, of the debtor.
|
4.
|
In the case of guarantee, the surety undertakes his obligation at the
request of third party (principal debtor).
|
|
5.
|
In a contract of indemnity, the indemnifier cannot file a suit.
|
5.
|
A guarantor can file a suit against the debtor, if he pays the debt or
performs the obligation.
|
Required papers/documents
for CNG Station:
1.
Lease
permission of Roads & Highways Department for the land of proposed CNG
Station.
2.
Copy
of lease agreement duly signed by Roads & Highways department and the party
on every page.
3.
Permission
letter of RPGCL for installation of the proposed CNG station.
4.
Lay
out plan of the CNG station approved by RPGCL.
5.
Permission
letter of Titas Gas Transmission & Distribution Co. Ltd for gas line
connection of the proposed CNG station at their letterhead pad.
6.
Lay
out plan of the proposed CNG station approved by Roads & Highway
Department.
7.
Permission
of Explosive Department for installation of the proposed CNG station.
8.
Permission
of Fire Service & Civil Defense.
9.
Site
location map of the proposed CNG station and property offered as collateral
security.
|
e¨vs‡Ki MÖvnK wjwRs †Kv¤úvbx
mg~‡ni m¤ú‡`i Dci cvwic¨vmy PvR© m„wói wbwg‡Ë AbvcwË cÖ`v‡bi Rb¨ e¨e¯’vcbv
cwiPvjK‡K ¶gZv cÖ`vb Kiv nq|
|
cl©‡`i 14 Zg mfv|
ZvwiLt 21.07.2002Bs
|
|
NBFI Gi †¶‡Î MÖvnK †gqv` c~wZ©i c~‡e© wewb‡qvM myweav
cwi‡kva Ki‡j †h Penalty
Charge Kivi kZ© wQ‡jv Zv cÖ‡qvRbxq †¶‡Î gIKzd Ki‡Z e¨e¯’vcbv
KZ©„c¶‡K ¶gZv cÖ`vb Kiv nq|
|
wbe©vnx KwgwUi 259 Zg mfv
ZvwiLt 25.07.2007Bs
|
Portfolio Diversification as on 31.12.2007 of Shahjalal Islami Bank
Limited:
|
Name of the sector
|
Amount
|
%
|
Ideal scenario
(based on present export
position of our country, contribution to GDP & Monetary Policy)
|
|
Agriculture
|
26.16
crore
|
1.21%
|
5% -
10%
|
|
Cotton & Textile
|
494.66
core
|
22.96%
|
15%
- 20%
|
|
RMG
|
216.71
crore
|
10.06%
|
10%
- 15%
|
|
Cement
|
40.16
crore
|
1.86%
|
1% -
2%
|
|
Brick Field
|
12.52
crore
|
0.58%
|
Upto
1%
|
|
Jute & Jute Goods
|
4.50
crore
|
0.21%
|
1%
- 3%
|
|
Chemicals
|
45.61
crore
|
2.12%
|
2% -
3%
|
|
Pharmaceuticals
|
57.34
crore
|
2.66%
|
3% -
7%
|
|
Real Estate
|
136.84
crore
|
6.35%
|
4% -
7%
|
|
Work Order Financing
|
38.39
crore
|
1.78%
|
1% -
3%
|
|
Transport
|
48.29
crore
|
2.24%
|
5% -
8%
|
|
Health & Other Service Industries
|
52.60
crore
|
2.44%
|
1% -
3%
|
|
Computer & IT
|
6.59
crore
|
0.31%
|
1% -
2%
|
|
Steel & Engineering
|
187.29
crore
|
8.69%
|
5% -
10%
|
|
Energy
|
46.48
crore
|
2.16%
|
5% -
10%
|
|
Paper & Paper Products
|
14.29
crore
|
0.66%
|
3% -
5%
|
|
Food processing & Beverage
|
165.30
crore
|
7.67%
|
2% -
3%
|
|
Trading
|
226.61
crore
|
10.52%
|
10%
- 15%
|
|
NBFI
|
193.90
crore
|
9.00%
|
1% -
5%
|
|
NGO
|
33.20
crore
|
1.54%
|
Upto
1%
|
|
Consumer Financing
|
1.72
crore
|
0.08%
|
1% -
2%
|
|
Investment to Staff
|
6.51
crore
|
0.30%
|
Upto
1%
|
|
Other Sectors
|
98.55
crore
|
4.57%
|
10%
- 15%
|
|
Total
|
2154.22 crore
|
100%
|
|
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