Syed Mahbubur Rahman
Managing Director & CEO
MTB

Following the introduction of the Offshore Banking Act, we are delighted to have received an overwhelmingly positive response. Both individuals and corporate entities have shown great interest, inquiring about the unique benefits of offshore banking deposit accounts. In light of this promising initial response, we have proactively taken steps to enhance our internal capacity. These measures include offering online account opening facilities with global accessibility and providing comprehensive information on fund remittance for prospective deposit accounts. Additionally, we are training our relevant colleagues to ensure they are well-equipped to effectively market our offshore banking deposit products.

MTB boasts one of the best boards in the country, with Norfund, a development finance institution, holding the largest share at 9.528%. MTB is not only recognized for its strong corporate governance but also for its robust balance sheet and solid operational and profitability ratios, underscoring its status as a sound financial institution. Among the bank's many strengths are its affiliations with over 500 correspondent banks globally, advanced digital capabilities, and a well-recognized focus on environmental, social, and governance (ESG) principles.

Previously, we conducted our international trade activities through correspondent banking partners who would confirm our credit and offer discounting facilities to our customers. While this arrangement was beneficial, the cost of obtaining these services was high, and there were no alternatives at the time. However, as our offshore banking balance sheet expanded, we became capable of managing many of these activities independently, reducing our reliance on correspondent banks. This allowed us to retain more revenue within the country. As a result, foreign correspondent banks were compelled to lower their fees, and we were able to process a higher volume of transactions, leading to increased trade activity.

Our primary target is non-resident Bangladeshis, our strongest demographic, who are familiar with the country's situation and have full trust in the interim government. We are confident in our ability to persuade them to deposit their funds in our offshore bank accounts. Our focus is on developing strategies to encourage them to keep their savings in these accounts, where they can benefit from higher returns.

Additionally, we recognize that family members from specific local areas often reside not only in particular countries but also in specific locations within those countries. Therefore, we will initiate a domestic campaign to promote offshore banking deposit products while simultaneously targeting specific locations abroad with the same message.