Sohail R K Hussain
Managing Director
Bank Asia

Since launching offshore operations in 2008, Bank Asia's Offshore Banking Unit (OBU) has arranged about USD 3 billion from international banks and development financial institutions to finance industrial transactions in USD and EUR. This has enabled export-oriented businesses to secure low-interest foreign currency loans, minimizing exchange rate risks. Recently, the OBU portfolio reached USD 200 million. By discounting import and export bills for the customers of the Domestic Banking Unit (DBU) and Type A, Type B, and Type C customers operating in Export Processing Zones (EPZs), Hi-Tech Parks (HTPs), and Specialized Economic Zones (SEZs), Bank Asia's OBU has supported enterprises' liquidity needs, reducing reliance on costly LC confirmations and conserving foreign currency.

We offer our customers easy online account opening with minimal documentation, free internet banking for balance checks, tax-free earnings, and the highest returns of up to 7.20% on term deposits, outperforming Europe's negative returns on institutional deposits. All funds are freely transferable and encashable. Bank Asia also has a 24/7 helpdesk to assist with account opening.

OBUs play a crucial role in boosting the country's financial sector by providing access to international capital markets and global funds, reducing reliance on domestic markets for trade financing, and enabling banks to secure foreign currency directly, thereby minimizing dependency on international banks. OBUs also attract overseas investors to industrial zones like EPZs, HTPs, and SEZs, boosting foreign direct investment (FDI). By offering cost-effective trade financing solutions, OBUs lower the cost of imports and enhance business competitiveness. Additionally, OBUs provide longer-term financial products, supporting extended-term funding for large projects and investments.

However, there are still trust-related concerns among expatriate Bangladeshis that need to be effectively addressed to popularize offshore banking products. Regulatory uncertainty and frequent changes in policies can deter investment. Limited liquidity and market size may not meet the needs of large institutional investors. Country rating is an important factor in securing more deposits for OBUs.

Additionally, weaknesses in banking infrastructure, including digital capacity and cybersecurity, as well as a lack of good corporate governance standards and robust deposit insurance schemes, can undermine trust.

We believe that any government with economic and political stability and the right policies will be able to attract foreign currency funds for offshore banking. Even if governments change, fundamental country policies must remain consistent, and customers need to feel secure that their money is in safe custody.