Innovative investment options vital for foreign investors

AKM Shahnawaj
Managing Director (Current Charge)
Dhaka Bank

Dhaka Bank has extensive experience in offshore banking, being one of the first local private banks to secure an offshore banking license. Currently, the bank operates two Offshore Banking Units (OBUs) and a customer service center, offering a comprehensive range of offshore banking services.

Throughout its journey, Dhaka Bank has not only catered to customers in Export Processing Zones (EPZs) by providing complete trade finance solutions but has also contributed to the development of the country's power sector and manufacturing industries. The bank has financed the establishment of new power plants and export processing factories. Additionally, it provides short-term post-export finance to exporters, helping them manage import liabilities during currency crises. The bank also offers buyers' credit to eligible importers, supporting local demand for raw materials and commodities.

In response to the Offshore Banking Act 2024 and related central bank circulars, Dhaka Bank offers a range of financial products tailored for non-resident investors. These include Foreign Currency (FC) account products, available in both current and savings forms, as well as term deposit products of varying tenors, with competitive, benchmark-linked interest rates and zero charges. Furthermore, the bank's digital platform ensures a seamless account opening process, providing global accessibility and convenience.

Offshore banking services have the potential to significantly enhance a country's financial sector by increasing capital flow, thereby providing domestic businesses and projects with greater liquidity and more cost-effective funding opportunities. To fully capitalize on these benefits, it is essential to offer innovative alternative investment options for foreign investors. Such efforts will not only expand the country's financial sector but also address foreign currency challenges, stimulate economic growth, and boost GDP.

Dhaka Bank is recently recognized by the Asian Development Bank (ADB) as the "Leading Partner Bank in Bangladesh, 2024," underscoring its role as the most active partner bank in the country, having supported the highest number of international trade transactions in collaboration with the ADB during the last fiscal year. Partnerships with global organizations like ADB are crucial for offshore banking operations, as they build stakeholder confidence.

To further enhance investor confidence, it is essential to improve Bangladesh's country rating. A positive rating from agencies such as Moody's, Fitch, or S&P Global would attract global investors. Additionally, ensuring strong corporate governance within the banking sector and maintaining a stable national economy are imperative.

For long-term success, a robust legal framework is needed to protect investors' interests. Similar to deposit insurance schemes, investment insurance schemes could be a viable solution to safeguard investors.