5 banks to seek offshore banking deposits at NY campaign

The managing directors (MDs) of five banks are going to New York to participate in a campaign on May 24 to encourage expatriates to deposit dollars in offshore banking accounts.

Amidst a lingering US dollar crisis in Bangladesh, some banks are emphasising on offshore banking to increase the supply of the greenback in the south Asian country's banking sector.

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Bangladesh expands offshore banking in hunt for forex

As a part of the effort, BRAC Bank, Dutch-Bangla Bank, Bank Asia, Agrani Bank and City Bank will arrange a dinner for expatriate Bangladeshis at New York LaGuardia Airport Marriott.

In the event, the banks will introduce offshore banking fixed deposits.

Investors enjoy tax-free profit of up to 8.40 percent on fixed deposits for terms ranging from three months to five years. They are also able to transfer funds internationally without any restriction along with profit.

"We are going to New York on May 24 to campaign on offshore banking and expecting 300 to 400 people in the event," said Mashrur Arefin, managing director of City Bank.

He will be accompanied by Selim RF Hussain, MD of BRAC Bank; Abul Kashem Md Shirin, MD of Dutch-Bangla Bank, Sohail RK Hussain, MD of Bank Asia, and Md Murshedul Kabir, MD of Agrani Bank.

Bangladesh Ambassador to the US Muhammad Imran will present as chief guest.

Muhammad Abdul Muhith, permanent representative of Bangladesh to the UN; Kazi Sayedur Rahman, deputy governor of Bangladesh Bank, and Md Najmul Huda, consul general of Bangladesh in New York, will be present as special guests.

Offshore banking is increasingly becoming a key window for banks in Bangladesh to facilitate investments and international trade by attracting deposits in foreign currencies.

It can even play a crucial role in mitigating the persisting foreign currency crisis in the country by extending liquidity support and stabilising the local currency.

The individuals and entities residing outside the country can avail the service in five currencies: the US dollar, the British pound, the euro, the yen, and the yuan.

Currently, about 40 banks have offshore units. At the end of September, their total outstanding loans stood at Tk 83,826 crore.