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Press releases and law firm thought leadership

This page is dedicated to keeping readers informed of the latest news and thought leadership articles from law firms across the globe.

If your firm wishes to publish press releases or articles, please contact Shehab Khurshid on +44 (0) 207 396 5689 or shehab.khurshid@legalease.co.uk

 

Legal Developments Worldwide

Articles contributed by A.S & Associates

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Bangladesh-The New Business Hub of Asia!

November 2016 - Finance. Legal Developments by A.S & Associates.

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Ferdausur Rahman, Barrister (Lincoln's Inn) and Partner, A.S & Associates highlights the business opportunities in thefast growing economy of Bangladesh.Bangladesh is a booming economy, recently making the list of low-middle income countries as per the World Bank.According to the IMF, the Bangladeshi economy is projected to grow from $180 billion to $322 billion by 2021. The rate ofGDP in 2015 was $195.1 Billion and the gradually escalating growth rate was 6.6%. High-growth domestic markets,government support, lower valuations of takeover targets and ready access to capital have provided unprecedentedopportunities for investors all across the world to explore new market in Bangladesh. Bangladesh is already one of theleading FDI targets in the Asia Pacific.

Non-Performing Loan Recovery

November 2016 - Finance. Legal Developments by A.S & Associates.

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Legal Challenges:

In Bangladesh, the foremost challenge for the financial institutes is Non-Performing Loan (NPL) recovery. Recently the Ministry of Finance of the Government of the People's Republic of Bangladesh informed the national Parliament that the total amount of non-performing loan is BDT 560 Billion. According to Bangladesh Bank, the Central Bank of Bangladesh, NPL ratio increased by 113 basis points, reaching 9.9 percent at end of March 2016 from 8.8 percent (9.3 as per World Bank) recorded at end of December 2015. However, the statistics is misleading as the total percentage is significantly reduced by the better performance of the Private Commercial Banks (PCB) and Foreign Commercial Banks (FCB), which to some extent mitigates the poor NPL ratio of the State-owned commercial banks (SCB) and Development Financial Institutions (DFI). At the end of December 2013, PCBs' had the lowest and DFIs had the highest ratio of gross NPLs to total loans. PCBs' and FCBs' gross NPLs to total loans ratio was 4.5 & 5.5% respectively, whereas that of SCBs, and DFIs were 19.8 and 26.8% respectively at the end of December 2013. The gross NPL ratios to total loans for the SCBs, PCBs, FCBs and DFIs were recorded as 23.2, 5.7, 6.2 and 33.1 percent respectively at the end of June 2014. Even in March 2016, SCB's and DFI's NPL were much higher than that of the overall banking industry and it increased to 24.3 percent from 21.5 percent recorded in December 2015.