April

2020

COVID Impacts on Business Sectors & Banking in Bangladesh &

the Government’s aids to Support the Economy
Question #1: Major impact in your country as of now-

It’s been five months world is suffering and fighting professionals are suffering, but suffering among the
against this COVID-19 pandemic. So far this low income group is severe. According to a survey
contagion has spread to 210 countries and regions of conducted by BRAC amongst less economically
the words, significantly affecting the global fortunate section, about 16% of people have no food
economy. In Bangladesh the first infection was in their home and 29% reported having 1-3 days’
detected on March 8, 2020. From then the panic worth of food only. Net income loss of people living
among people is towering day-day-day which is in the urban areas is 69%, while in rural areas it is
impacting the natural lifestyle, health, economy, i.e. worse than that, i.e. 80%. So, undoubtedly
every normal situation in unprecedented way. livelihood is the topmost impact of this epidemic.
Furthermore, despite the government’s market
Health Impact: monitoring efforts, prices of essential goods have
Being a densely populated country with more than shot up in some places.
160 million-plus population, Bangladesh is highly
vulnerable to this contagion. Besides, the healthcare Industry & Trade Impact:
facilities in this country are too limited to serve this Almost all the economic sectors such as trade,
vast demography. Despite having a three-month remittances, supply chain, regional collaboration,
head start since the outbreak began in China, we are production, transportation, tourism and other service
yet struggling to track and test for the disease. But sectors are suffering heavily. Things are in stagnant
the light of hope is unlike other countries, yet the due to lockdown and unpredictability. IMF declared
death percentage is not that much higher in our that a global economic recession has already started.
country, behind which our Government’s immediate Stock markets across the globe have witnessed
and prudent steps of lockdown played immense role. drastic fall over the last few months. Remittance
Up to 25 April, total infected number of people is inflow of our country has slashed to almost half this
5,416 of which death percentage is 2.7 pc. Though month (April). Activities of professionals working
death number is under control, the single day new specifically in the marketing and sales, operation and
infection number is increasing. Along with elderly production domains are being hampered most.
and sick people, physicians and police professionals Export oriented industries are the worst victim of
are the most vulnerable now which calls for special this pandemic. According to a research from the
care of these segments. Center for Global Workers’ Rights of Pennstate
Besides, patients of other diseases are facing trouble University, more than half of Bangladesh suppliers
to get proper treatment in the hospitals. Specifically have had the bulk of their in-process, or already
the chemo therapy and dialysis patients are suffering completed, but production cancelled. Many factories
a lot. announced layoffs at their units according to the
provisions of 12 and 16 under labour law. Workers
will get half of their basic payment and house rent
Livelihood Impact:
during the layoff period, according to the law. From
Till now, there is no vaccination for this virus.
BGMEA website, till 13 April 1136 factories
Therefore, isolation and lockdown are the only
reported a loss of USD$3.15 billion in
means to stop the spread of this deadly virus. But in
cancelled/postponed orders, equivalent to 976
our country a large number of people live from hand
million pieces. A staggering 2.26 million workers
to mouth. So here the tradeoff between health and
are affected thus far. If the recession persists for a
economy is not an easy task to achieve. Almost all
longer period, global economic growth could come collection for the July-January period of this year is
down to 1.5%. reported. The COVID-19 outbreak will further
expose these vulnerabilities as the Asian
Economic Impact: Development Bank (ADB) estimates a worst-case
The COVID-19 pandemic, however, stands to economic reduction of 1.1 percent, equivalent to
impact Bangladesh in unprecedented ways, USD $3 billion. The projected GDP growth of 8.2
unraveling the cracks in its economy and undoing its percent for 2020 may decline by 2 to 3 percent - that
remarkable economic progress of recent decades. is, economic growth may settle somewhere between
Despite high GDP growth projections, Bangladesh 5 to 6 percent.
went into 2020 with some ominous cracks in its But as a nation, Bangladesh is well known for its
economy. The amount of non-performing loans in resilience, and we have many times in the past,
the country’s fragile banking sector has risen to 4.43 surpassed expectations and overcome all obstacles in
percent of the GDP, while the country’s fiscal deficit the end. Following on those, it is presumed that
rose to around USD $13 billion in FY 18-19, the Bangladesh will eventually emerge as a stronger
highest in 11 years. And this year it has gone more nation after weathering the perils of COVID-19.
down; already a shortfall of BDT 395bn in revenue

Question #2: Relatively safe and worst hit industry sectors, in our country –
At first blush, it is almost like the coronavirus Developing countries are facing distinct pressures
pandemic is shutting down the economy and constraints which make it significantly harder
everywhere, equally, with frightening force and for them to enact effective stimulus without facing
totality. Since January, the impact of the binding foreign exchange constraints. And as these
outbreak has unfolded from a China-centered countries do not issue international reserve
supply shock, which sent shockwaves across currencies, they can only obtain them through
global trade and disrupted supply chains. There exports or sales of their reserves. But, exports
is a high chance of ferocious demand shock themselves require significant imports of equipment,
hurting consumption and investment in China, intermediate goods and financial business services,
Europe, and the United States. Policymakers which are being bended terrifically now. So the
expect a sharp global recession in H1 2020 in the same financial turmoil we the Bangladeshi industries
vast majority of developed and emerging are going to face. However, plan movements,
economies, followed by a U-shaped recovery. government’s aids and controlled behavior can help
(Source: World Bank) our industry sector to recover in the ‘U’ shape at the
earliest. The projected loss has been presented in a
diagram below:
Projected economic loss 2 trillion BDT
For the entire course of the closure
33 Bn
Taka each day

Service Sectors: Industries: Agriculture:

20Bn 11Bn 2 Bn

60% 33% 7%
 Every coin has two sides. Though the overall There are some industry sectors which are having
economy is getting down but some businesses are good or medium profit margin in this pandemic time
gaining profits and are in safe zone due to this but have health safety issues vastly, some are have
COVID situation. Here, we can count two factors or higher margin with less safety issues, some are
dimensions while deciding the safe & worst zones of losing profits but are safe in terms of heal safety
the sectors. These are: concerns. There the best try has been given to
1. Profit margin & business perspective. present the scenarios in a diagram below:
2. Health safety & security perspective.
Less Profit with Moderate Safety Higher Profit with Higher Safety
1. Food Industry & Online food delivery 1. IT & App developers
channels 2. News Channels, Media & Online Media
2. Courier Companies 3. Pharmaceuticals & medical equipment
Health Safety &

manufacturer
3. Transportations of supply chains & 4. Online dress & grocery Markets
health purposes 5. All mobile app, gaming sites & website
High

4. Insurance owners and publishers.

No Profit due to no Safety Moderate Profit with less Safety

1. Garments Industry 1. Hospitals
2. Travel & Tourism 2. Agriculture & day to day grocery shops
3. All physical markets, shopping malls 3. FMCG
Security

4. Housing & Land Developers 4. Bank

5. Leather and tannery Industry 5. Research Industry
Low

6. Steel, Cement, Wooden Industry

LOW Profit & Business

High
The major sectors of our economy are in threats. In the below diagram some are captured with brief details
Ready Made Garments
- Hard to source raw materials from China
- 264 garment factories order cancellation / postponement
- Total worth of cancellation / postponement USD 1.5 billion
- Global demand drop risks future orders
Remittance
- 10 million migrant workers loosing wages
- Many migrant workers are kept in labor camps without works
- Low demand in future due to slow economy
Banks and NBFI
- COVID 19 is effecting it in an inconvenient time
- Will see low private sector credit growth
- Less government borrowing due to low development works
Small Businesses and Start Ups
- Bank’s reluctance to provide SME loans at 6:9 scenario
- Private equity will get risky
Consumer Brands
- Wide spread closure is impacting consumer buying habits
- Pohela Boishakh season will see limited consumers
- Eid season this may will see limited sales by consumers
Nationwide shut down in effect Travel & Tourism
- Full global tourist industry gone to sleeping mode & so as ours.
- It will take a long time to get this industry back in the peak position

Coronavirus and the Bangladesh economy: Navigating the global Covid-19 shutdown
We can conclude with some information & concerns 3. Inflation will stay in check in both years,
shared by Asian Development Bank regarding and expected to slightly edge up to average
Bangladesh Business sectors and overall economy. 5.6% in FY2020 on higher food prices as
Five major points described by ADP have been
well as nonfood prices on account of higher
presented below:
domestic natural gas prices. In FY2021, it
1. Bangladesh economy continued to perform will ease to 5.5% on better supply condition.
well despite the global economic slowdown 4. ADB’s preliminary estimates indicate that
and can remain strong if COVID-19 about 0.2% to 0.4% of Bangladesh GDP
challenges managed well. may be lost due to spillover effects of the
2. Government interventions & addressing global COVID-19 pandemic.
cash management challenges and broader 5. If a significant outbreak occurs in
resiliency issues due to COVID-19 related Bangladesh, the impact could be more
shutdowns and economic knock-ons could significant.
help minimize impact on Bangladesh
economy.
Question #3: Relatively safe and worst Export:
hit industry sectors, in our country –
Due to Extension of lockdown across the world, 80% (Knit or crochet clothing, accessories: 44%,
the macro-economic indicators are being Clothing, accessories (not knit or crochet): 42%) of
impeded and countries like Bangladesh are total export in Bangladesh is depended on RMG
likely to witness this scenario also. Here the sector.
recent condition of macro-economic indicators ▪ RMG companies
of Bangladesh is described below: that buy from
Bangladesh are
GDP Growth: literally closing
doors all over
Due to COVID-19 the GDP growth rate may European and
decline by 1.2 to 3.9% between 2020 to 2022 American cities.
which means economic growth may settle Stores have closed
somewhere between 5 to 6 percent whereas the for H&M, GAP,
projected GDP growth rate was projected 8.2% Zara, Marks & Spencer, Primark, which are all
in 2020. (Source: World Bank) major buyers.
▪ Extended lock-down of industries, cancellation
of RMG orders, closures of garment factories for ▪ The decreasing of export rate trend will be
long time are some of the major reasons of accelerated by cancelation of export order. Till
economic slowdown. This is further exacerbated now the cancellation amount is $1.5 billion, 50%
by decreased remittance flow, inflation, loss of of average export income in a month.
income.
▪ Not only the domestic economy but also global
economy is likely to slow down by two percent.
While in global economic recession in 2008 the
drop-off of GDP growth rate in Bangladesh was
less than developed countries, in this era of
globalization Bangladesh will surly witness
unprecedented economic slow-down.
▪ Along with this if we consider the time series
data of past years; we can observe that
Bangladesh is closely related to the GDP growth
rate of U.S.A and European Union. U.S.A and
EU is facing a tough economic slowdown for
this pandemic which in turn also create impact
to the developing countries like Bangladesh.
Import: liquidity crisis in market may increase the
inflation rate in coming future.
▪ Furthermore, panic buying of consumers can
From the beginning of this FISCAL year, growth also increase the rate of inflation in coming
rate of Import becomes slow down which is till
days.
exists.
▪ Although, higher export and decreased import
rate is good for economy but in this pandemic Remittance:
scenario both Export and Import are in
decreasing trend. One of the most important pillars of the
▪ Like export, top Bangladesh economy is remittances sent by
import partners of migrant workers will also take an inevitable hit
Bangladesh are mostly due to COVID 19.
affected countries of ▪ While in last Fiscal
Corona Pandemic. year Bangladesh has
▪ Price of each item will shown an increasing
increase significantly trend in remittance flow
and maintaining which is showing
exchange rates will be a challenge for downward trend
Bangladesh. ▪ Bangladesh has around
10 million workers overseas, with a majority in
Per Capita Income: the Middle East and the US, UK, and Malaysia.
Travel restrictions as well as an economic
slowdown and curfews in host countries in Saudi
A reduction in economic growth, along with a rise Arabia, UAE, Qatar, Kuwait, Malaysia, US and
in joblessness, will inevitably lead to a sharp EU countries mean that workers are losing out
decrease in per capita income which results
on wages.
higher poverty rate.
▪ Robust economic growth during the last decade ▪ Furthermore, oil prices have also fallen sharply,
helped Bangladesh to win her fight against which is expected to worsen the demand for
poverty; mainly through employment generation migrant workers. History shows that falling oil
channels. prices have a lagged effect on remittances into
▪ However, according to current projections Bangladesh. At present, prices are falling
(before Covid-19), the poverty rate will still be because of reduced demand from sectors such as
20 percent in 2020, with almost 32 million aviation and transportation sectors as well as the
living in poverty. After COVID pandemic this Russia-Saudi Arabia price war
percentage will upsurge certainly.

Inflation:

Though inflation rate is increased slightly in last

month but still it is in moderate position in
Bangladesh.
▪ However, decrease in per capita income,
difficulty in importing goods, loss of income,
Credit Growth: Unemployment Rate:

COVID-19 hits banks of Bangladesh in an Efforts to stop spread of Corona Virus especially
unfortunate time when banks are trying to cope closure of non-essential business creates an
up with the directive of 6% and 9% caps to increase in unemployment rate throughout the
interest rates on deposits and loans. world.
▪ Recently private sector credit growth is in ▪ In Bangladesh nearly .15 million
declining mode which will be persisted since people are waiting to go aboard
banks are doing their activities in a smaller scale maximum number of which now
and also have to close most of the branches for goes back to their home and this
pandemic situation. will increase the unemployment
rate of Bangladesh sharply.
▪ Furthermore, a huge number of
expatriate Bangladeshis are now
facing the risk of losing their
overseas jobs as they stuck here
due to flight cancellations and
other regulatory issues.
▪ Loss in SME sector, cancellation
of huge number of RMG orders,
loss in tourism & aviation industry will surely
create an impact the unemployment rate.
According to Tour Operators Association of
Bangladesh (Toab), around 5 Lac people work
full-time in the tourism and hospitality sector of
the country. 20 to 30% of them may lose job.
Question #4: Response by the Government and the regulators and industry sectors

Though it is unsatisfactory that our Government distribution at a lower price among the poor people,
could not take proper measures for arrangement of as well as increasing monetary supply. To inject
enough Corona testing kits and delivering medical more money supply or increase liquidity into
supports from the very beginning of the infection market, central bank has cut the CRR ratio in two
detection, contagion tackling is being handled by our steps, from 5.50% to 5% on March 24 and from 5%
government to a very far extent. At the very first to 4% on April 9. This cash reserve cut would inject
moment of positive COVID identification in our an additional amount of BDT 19,200 crore into the
country, Government has immediately closed all the economy, according to an estimate of BB. Also to
public and private universities, offices, factories, boost the investment BB has raised the bank’s
transports to stop gatherings and close contacts of advance-deposit ratio (ADR) by 2% for conventional
people for tackling the spread of this contagion. This banks from 85% to 87% and investment-deposit
immediate lockdown undoubtedly saved thousands ratio (IDR) by 2% for Islamic banks from 90% to
of people’s life controlling the infection to a far 92%. This would result an additional BDT 27,000
extent. crore lending capacity of commercial banks. Besides
the two major initiatives, BB also slashed the repo
Also to protect the economic backdrop and rate to 5.25% which was 6% previously to make
uncertainty government is playing very active role. funds cheaper for banks and also has decided to
New new regulations of stimulus packages and purchase government securities from the secondary
refinance schemes are being announced time to time. market. Banks having met their SLR ratio
The first bailout/stimulus package was announced on requirements can sell their excess government
25th March; BDT 5,000 crore disbursement for the securities to the Bangladesh Bank at the market price
salaries and wages of export oriented industries to under this scheme.
mitigate the impact of coronavirus on the country’s
economy. Till April 26 a total of BDT 77,750 crore To ease the livelihood of mass people Bangladesh
support has been announced in the form of two Bank announced moratorium on loan payments until
stimulus packages and five refinance schemes 30 June 2020 which will protect the borrowers to fall
covering the Cottage, Micro, Small and Medium into default category. BB has announced that
Enterprises, Industries and Service Sector classification of loans as of 1 January 2020 will
Institutions, Export-Import raw materials and remain unchanged till 30 June 2020. For foreign
shipment facilities, Low income professionals, traders BB has extended the export proceeds’
Farmers and Micro-businessmen. The amount is receipt. EDF loan tenure, back to back LCs usance
nearly 2.60 percent of the country’s total GDP. Also period.
Government has announced habitation and
employment opportunities for approximately The government has repeatedly been asking people
100,000 people in Bhashanchor and assured that to stay home in efforts to contain the spread of the
benefits will be provided for people working in virus. Recently Government has taken steps to
essential services. appoint 2,000 doctors and 4,000 nurses for the
treatment of coronavirus patients.
Besides fiscal policies, government is also taking
monetary measures to combat the novel corona Along with Government regulations and regulators’
virus. Monetary measures included widening social responses, industries are also actively responding to
safety net coverage for poor people, food this situation. Pharmaceuticals industries have kept
their activities continued in this tough time to ensure public hospitals. Moreover, they are running
enough medicine and health facilities for the mass awareness and sanitation activities across the
people. Power sector is also continuing their support country through about 20,000 sales points.
in full way through this lockdown period. Banking Country’s another leading industrial conglomerate
industries are also operating their activities in Akij Group is building 301-bed hospitals on their
limited scale. They are making services digitalized own land in Dhaka to treat patients infected with
as much as possible. Banks are cutting the interest coronavirus. They have also provided free masks for
rates for their clients and customers and also the mass people and also are distributing foods
providing grace periods to reduce the economic amongst poor.
burden of industries of different sectors. MFS (e.g.
bKash, Rocket, Nagad etc.) have also increased their We, the BRAC bank family also have donated BDT
monthly transaction limit and reduced charges. 5 crore to Government fund, BDT 1 crore 76
thousand to poor people, and provided 6000 PPE to
Large and local conglomerates are also contributing hospitals.
a lot. Bangladeshi multinational brand Walton has
distributed BDT 77 crore amongst the Walton Reference:
1. KPMG (23 April, 2020). Measures in response to
family, their employees and workers. They also Coronavirus disease (COVID-19)
donated BDT 7 crore to Government’s Workers 2. Dhaka Tribune (22 April 2020). Banks’ liquidity
increases by Tk46,000cr after BB’s policy
Welfare fund, BDT 10 lakh to Bidya Foundation
interventions.
which is working for free food supply of 40,000
poor people. They also circulated 5,000 PPE to
Question #5: The nature of impact you have and will have in your Institution.

Like other peer banks in Bangladesh, BRAC Bank is 3. Liquidity Crisis: It has been anticipated that
also facing some challenges now and the impact of Corona pandemic situation will make liquidity
these challenges likely to be long-lasting in future
crisis aggravated.
across many sectors even after the end of this
pandemic.
▪ Already people started to withdraw money
1. Health & safety Impact: At this moment the from banks.
major risk of this COVID pandemic is the ▪ Moreover, due to extended period of general
health risk of employees & customers. holiday, loss of income, closure of business,
increasing trend in unemployment etc. people
▪ Although BRAC BANK has taken all possible started to live with their savings and create a
measures to cope up with this risk but many huge queue in front of branch.
branches needs to be open due to transaction ▪ Lower demand for loan and higher demand
purpose and in this stage of community of money withdrawal will decrease the
transmission branch employees are exposed to money supply in market.
the spreading risk of virus.
▪ However, bank has to carry this risk for long 4. Market Risk: Along with other impacts, Bank
time. Bank need to assure health & safety will face market risk also.
measure to stop spreading virus in office
premises even after end of this pandemic ▪ The interest rate fluctuation, changing in foreign
situation. exchange rate, world recession, cancellation of
international orders and overall global economic
2. Credit Risk: Corona situation makes the context surely create an impact in banking
credit risk worsen for banks. industry.
▪ Since BRAC Bank is an active player in foreign
▪ Cash flow of many consumers and businesses currency market, risk will be confronted in
will collapse due to closure of different small foreign currency market.
business, cancellation of RMG orders and ▪ Bank has to deal with the slow growth in LCs
adverse hit in different industries and vulnerable capital market.
▪ In this given economic context both commercial
and retail non-performing loan will increase. 5. Cyber Threat: In this era of virtual shifting
▪ As we know SME sector is one of the mostly cyber security is the major concern for banks.
affected areas and BRAC Bank is a SME
focused bank, bank will face default risk in this ▪ To slow down the spread many employees of
sector. BRAC Bank is working from home using VPN.
▪ Moreover, many people will lose their jobs by Without proper monitoring any cyber fraud may
which borrowers will struggle to pay the happen.
monthly interest payments. In future Bank will ▪ E-mail Phishing, SMS Phishing, Ransom-ware,
also struggle to find good borrowers. ATM card fraud, Taking all date from customers
through phone call etc. are the major techniques
of cyber fraud.
▪ As one of the leading banks of Bangladesh situation which are also need to be monitored
BRAC Bank may be in the priority list of strictly.
hackers. ▪ Not only the process but also monitoring the
employees is also under operational risk
parameter.
6. Fraud Risk: This pandemic situation is the most
favorable time for the fraudsters to become
8. Money Laundering Risk: Along with other risks
active.
we are also exposed to money laundering risk
▪ BRAC bank is encouraging customers to do also.
virtual banking mostly.
▪ In this situation KYC review is little tranquil
▪ Fraudsters can attempt fraud through internet
now.
banking or ATM.
▪ Moreover, other AML monitoring tools like
▪ Most of the people are preferred to use ATM
CTR, STR, Branch visit etc. are also slow
booth rather than cloning to banks. ATM card
down. Group of people can take this
cloning is a major threat in this situation.
advantage and perform money laundering
activities.
7. Operational Risk: Pandemic situation itself is
under operational risk.
Nevertheless, Govt. is monitoring the market
very closely and already offers some stimuli
▪ Since employees are working remotely, many schemes to keep the economy run.
processes may weaken which can create a risk in
future.
▪ Moreover, in the pandemic situation Bank need
to create new processes to cope up with this
 Question #6: The measures our organization The BRAC Bank Limited has taken to
address & deal with this current situation-

The novel coronavirus or Covid-19 has brought a similar in magnitude to the 2008 crisis. (Source:
dramatic slowdown in the overall life style and ADB)
economy of the world where Bangladesh became
a victim too. The exponential spread of the virus Like the health experts, bank supervisors are
and its deadly effect made it clear that it has the responding to a fast-moving and extraordinary
potential to wreck the economy. This pandemic is situation. And so our bank is also doing. Here we are
a different kind of shock. Never before have
going to present a swift discussion on the measures
modern economies shut down at the drop of a
hat. Pressure on the banking system is growing BRAC bank has taken to address this pandemic
and higher defaults on debt are imminent. And situation as well as how have been dealing with it.
many now expect a shock to the financial sector

The measures Bank has taken to address this pandemic situation:

1. Consistent Client Service:

The first and foremost duty of the bank is to serve the clients consistently. BRAC Bank Ltd took all
the necessary measures so that all the existing clients & the guests can served with the highest
priorities and make them satisfied.
Branch Agent ATM & CDM
Banking
As per roster plan, on an This is the dedicated channel ATM-CDMs are the best possible
average per day our 60- which covers largest areas to solution in such situation. So we
90 branches remain serve the clients. Among 349 open all the 399 ATMs every
opened to serve the outlets, 300-320 outlet open day and among 89 CDMs 40-50
customer deliberately. every day on roster basis remain opened averagely.

Call Center Safety

Client safety is the highest
24*7 our Call Center is
priority of the Branches &
active. Clients can get the Outlets. Sanitizers &
solution via dialing thermal scanners are
16221 at any time.
available in the branches

2. Safety & Security of The Employees:

In such situation, the second most important priority of the bank is to ensure the safety and security of
the employees. And BRAC Bank is doing it with the every possible manner.

WFH Safety in Branch Medical & Insurance

1. BRAC bank facilitate 2. Sanitizers, masks & thermal 3. Necessary medical facilities
scanners are being maintained in have been ensured & prompt
the maximum number of
all the branches. Clients are not measures can be taken at
the employee to work
authorized to enter without any time. Insurance facilities
from home with all the
masks. Necessary distances can be availed by all
necessary equipment
maintain is also mandatory.
3. Regulator Management:
In such worst situation, maintaining strong
relationship with the regulator is a must and
BRAC bank took all the measures to do time to
time communication with the Bangladesh Bank 10. Internal & External Communication Management:
and follow all the guidelines provided by them Communications team is also proactive to do the
meticulously. right communication in the right time among the
internal staff as well as external media & clients.
4. Business Continuity plan: Company Secretariat team ensured time to time
BCP has been prepared on an immediate basis communication with the board members to get
and rolled out with immediate effect. their directions properly.

5. Liquidity & Cash Management: 11. Risk Management & Research:

Liquidity crisis is the main concerns of banking Risk identify & control is mandatory is such
industries. BRAC bank previously took the uncertain situation. Risk management unit &
initiative to be well maintained on liquidity side. Research unit are doing their best to let everyone
Asset Liability Management team is monitoring know about the forecasting risks and research
the liquidity status all time. works are being shared with the relevant
stakeholders to make them aware.
6. Tech Management:
12. Daily Banking Operations Management
Technology team is providing all the IT related
supports consistently so that employees can Operations teams are active to support the
work from home deliberately and the branch branches to provide the clients encashment
people also can work without facing any facilities.
disruption.
13. Legal & Defaulter Management:
7. Cyber Risk Management: Legal, Collection & SAM teams are active to get
Information Security team took necessary the payments clear so that credit risk can be
measures to diminish cyber-attacks and this framed within the limit and the communication
team is also making the entire staffs aware abbot with the court can be relentless.
the cyber risks.
14. Staff Benefits Management:
8. Financials Management: Human Resource team is very much concern
Finance team is looking after the regulatory about the health safety of the employees and
reporting from home and some from head office they are also lively to provide the compensation
if required. They are also planning the coming benefits on time to all the employees. The
budgets, methods of covering the loss of April & regulatory guideline on branch staff benefits and
May, financial statements etc. insurance will also be followed time by our HR
Payroll team.
9. Branches, Outlets & ATMs-CDMs Management:
15. Third party Vendor Management:
Branch Governance team is monitoring & is
helping all the branches with best efforts to Procurement team is dealing with the third party
ensure uninterrupted banking service. vendors time to time to maintain the supply
Head office Alternate Banking team is chain of important equipment.
supporting agent banking outlets so that services
could be provided staidly to the very rural areas. 16. General Administration:
This team is also looking after the ATM booths GSS team is fully prepared to give any kind of
to ensure distinct performances. general administration support on an immediate
 basis & transportation facilities to the Bank donated BDT 50 million to Government’s
employees. Relief Fund.

17. Relationship Management with Clients: 19. Social Media Management:

Product teams & Relationship Managers are Communication team is continuously giving
always active to do required client efforts to aware the people about COVID 19 and
communications. necessary safety measures via Facebook post,
LinkedIn post, BBL website and etc. Various
18. CSR (Corporate Social Responsibilities): environment related posts are also being shared
last but not the least Bank also involved in in our Facebook page to make an effective
various CSR (Corporate Social Responsibilities) change among the people. Some posts from
activities as the pandemic has an adverse impact social media are appended below for reference:
& is crucially destroying the livelihood of
unprivileged community of the society. BRAC

The major activities have been presented in the above mentioned points. With all these important activities,
BRAC bank is trying to ensure providing maximum banking facilities in the banking market with proper safety
nets.

The measures the Bank employees have taken to address this pandemic situation:
As a banker, the employees also have certain responsibilities towards their organization and duty towards the
country. BRAC bank employees are doing their best to support the organization as well as the nation. A brief snap
is also presented below about the measures taken by the employees to provide constant banking facilities.

1. Managing all the Daily Activities in a Responsible Manner:

Second Line
First Line / Front Line Third Line
Back office staffs are giving ICC, RMD & IS teams are
Branch & Agent banking supports to the front line with their trying their best to make
outlets are providing all the best efforts. Some are doing work staffs alert and get the
customer requirements with from home with endless work hours service done in the
confirming health safety. and some are going to the office to mannered as well as
continue uninterrupted services. prescribed ways.

Management Committee Board Members

Board members are involved with
Management Committee is
the Management Committee so
active 24*7 to guide the that all the prime decisions of the
subordinates and top make
organization can be taken with
on time decisions.
the proper care and timely
manner
 2. Taking all the Health Safety Measures: healthy environment so that they can serve
All the employees are very much cautious the bank meticulously.
about the health safety measures also.
Branch people are protecting their own 3. Act as Responsible Citizen:
selves as well as they also concern about the Along with being responsible employees, all
visitors & clients. And those who are the staffs are also acting as responsible
working at head office they are also citizens also. Employees donated their
maintaining health sanitizes properly. one/two day’s salary to the unprivileged
People who are working from home obey ultra-poor people.
the lock down rules properly and work in a
Question #7: How are the other Banking institutions, in our country, are responding to
this current situation-
As a developing economy Bangladesh has facing an unprecedented global crisis due to the
encouraged to develop its banking industry to corona-war, and customer relations are also taking a
promote economic growth. Over the last three hit as a result. Deposits have gone down as the
decades or so the country has seen spectacular households are holding higher volume of cash in a
expansion of the banking industry. The banking situation of exceptional uncertainties. Economic and
industry in Bangladesh has even gone a step international trade disruptions have already resulted
further by promoting financial inclusion of the unprecedented halt in business activities in all
very poor in rural areas of which microfinance regions of the globe, and the banks and financial
and microcredit are the policy instruments to institutions have started receiving negative
achieve that objective. It is widely apprehended implications of the situation.
that the Bangladesh economy is going to be Since the Government has imposed general holiday
seriously affected by the Covid-19 fallout. to combat COVID-19 pandemic, certain services are
(Source: KPMG) required to maintain their operations in order to
sustain the living conditions of people of the
However, the actual economic losses will depend on country. Banks would operate in limited capacity as
how long this pandemic persists and how financial per Bangladesh Bank guidelines. There are 42
regulators and leaders worldwide devise policies and commercial Banks like us in our country they are
strategies to address the issue. Preparations to offset doing below mentioned regular limited activities.
economic effects of Covid-19 are underway in There are 9 foreign banks, which are also bound to
Bangladesh. The government has announced a do the same. 6 state-owned bank & 3 specialized
number of stimulus packages to support industries, banks are free do provide more facilities to customer
financial and farm sectors and vulnerable groups and but to some extent.
thus help the economy rebound. Banks are currently

The measures al other Banks in our country have taken to cope up with this pandemic situation:

The first and foremost measures all the banks have taken, are the health security & safety
measures to be responsible in such pandemic situation.

a. Sanitizing the branch cash counter areas, vaults in the first duty before starting a
working day in the branch.
b. Secondly Thermal scanner in the entrance of the bank
c. Ensure health safety of all staffs via providing masks, gloves, and sanitizers.
d. Measures to make the clients safe mark the step towards the cash counter for
maintaining safe distances.

Other than these above mentioned safety measures Bank has to make their banking operations run as per the
immediate regulations provided by the central bank. And then bank also think about the mandatory activities
which are crucial for make their existence stable such as Liquidity Management, Compliance, HR activities,
Media Management, General Administrations etc. These mandatory operational actives by all the banks to be
responsible in such situation have been described below briefly:
Limited Banking Operations: charging EMIs in the coming three months
a. All banks are keeping their branches open for April, May & June. The interest of these three
cash deposit and withdrawal on roaster basis. months will be added with the Principle amount
Many banks updated their websites with the list and after three months in July one clients will be
of opened branches. notified with new EMI amount to pay the same.
b. Particularly, banks with online facility are also
keeping their branches open for facilitating the Working From Home:
transaction needs of the customers considering Every Bank staffs are doing their regular activities
from home. They are conducting necessary meetings
an appropriate distance between the branches.
via various mobile apps or internal banking
c. Banks are facilitating clients to issue and pay software.
demand deposit, pay orders, etc.; take deposits
of treasury challans, encash different saving Work at Head Office:
certificates & coupons and ensure transactions Centralized banks are keeping open their head
run under different payment systems/ clearing offices and with full safety measures only some
operations as per Bangladesh Bank. required employees are doing office work here to
support the branches & track the ATM booths.
d. Divisional authorized dealer branches and
authorized dealer branches which are deemed to
Important Meetings through Digital Platforms:
be important and necessary for foreign exchange Bangladesh Bank has instructed all banks to conduct
transactions remain opened as much as possible. their directors meetings, executive committee
e. All branches of all banks near labor intensive meetings, audit committee meetings and risk
industries have been keeping opened. management committee meetings through video-
f. At least one branch has been stayed open for conferencing. Video recordings of such digital
minimum of one day per week in areas which meetings should be preserved. And all the banks are
following accept any unwanted emergency
are under lockdown with consultation of the
situations.
local administration.
g. Daily banking transaction hours are from 10:00 Utilize the Regulatory Reporting Relaxation & Maintain
am to 1:00 pm in Ramadan. For completion of Proper Communication:
administration activities, banks are remained Banks are allowed to file their regulatory
open up to 3:00-3:30 pm after transaction hours. reporting/statements other than liquidity reporting
h. Bank branches are trying to keep enough reserve (DB 4 and DB 5) and CRO reporting within 10 days
to meet customer needs. ATM booths are after resumption of regular banking operation. Banks
operational and have adequate money. Besides, are utilizing these facilities.
Banks are also maintaining proper communication
if any area is locked down under Government’s with Bangladesh Bank in timely manner to be
instruction, enough cash reserve has been updated and also to keep them updated about the
ensured by the help of local administration and operations.
law enforcing agencies.
i. BACH, NPSB, MFS, BEFTN, inter-bank call Humanitarian Aids to Branch People and Regular HR
money and repo transactions are also operational Activities:
during the general holiday on a limited scale. Human Resource Division of every bank is trying to
j. Some decentralized banks are facilitating the follow the following regulations as the pandemic is
heart taking threat to the employees who are serving
clients with credit card amount upturn & loan
the clients directly in the branches:
top up facilities.
k. Some Banks are facilitating the clients with A. Incentives allowance for bank officials
enhancing loan tenor three months & not
 i. Bank officials working from office during the Risk Management:
general holidays declared for COVID- 19 would Banks keep their Risk Management teams active to
get a special monthly incentive allowance avoid major risks such as Compliance risk, Credit
equivalent to the respective monthly salary risk, Liquidity risk, Market risk, Cyber risk,
Operational risk etc. Management Committees are
amount of bank officials.
well informed about all kind of risk identification &
ii. Bank officials who work for more than 10 days mitigation status.
on a 30 day period would get the entire monthly
incentive amount and officials working less than Internal Control & Compliance, Regulatory Affairs &
10 days would get a proportional amount. Legal:
iii. 30 day monthly period would be computed from All these important third line activities are being run
the day general holidays have commenced and from home via mail and other communication tools.
would restart thereafter. They are also supporting the branches with
B. Insurance for bank officials necessary guidelines and feedbacks via mail.
i. Bank officials would receive BDT 0.5m to BDT
General Administration, Procurement & Third-Party
1m based on their job designation if they get
Management:
infected with COVID-19 while performing their To ensure the safety and security of Branch staffs,
duties physically from their offices. clients, visitors and few staffs working at head
ii. The insurance payment would be paid within offices, General Administration team is arranging all
maximum of 15 days. the necessary equipment available with vigilance.
iii. The banks will also bear the medical costs of the They are also managing lesion with the third parties
bank officials for treatment of COVID-19 and to avail required items from them. This team is also
taking care of transportation facilities of the
for any accidents incurred by the officials while
employees.
performing their duties.
iv. If any bank official dies due to contraction to Internal-External Communication, CSR, Brand & Media
COVID-19 while performing their duties Management:
physically from their office, their family will be In such pandemic situation every banks Brand,
given a special relief whose amount of 5 times Marketing & Communication channels are very
the insurance payable along with other salary much active about protecting clients’ trust upon
and remunerations payable to the employee. them. They are making internal communication to
v. This incentive package would be applicable for alert internal staffs as well as making the clients and
visitors aware about the pandemic and what
the duration of the general holiday declared for measures should be taken to prevent this. These
COVID-19 and the following 30 days. channels are also working for helping the
Bangladesh Government through various CSR
HR is also very much concerned about the health activities. Bangladesh's around 36 private banks are
safety & security of all the employees hence WFH going to donate nearly Tk137 crore to the Prime
(Work from Home) protocols have been taken by the Minister's Relief and Welfare Fund to help the
HR divisions of all banks. And the Compensation & government fight the coronavirus pandemic. Also,
Payroll team is very timely in disbursing the salary four state-owned commercial banks will give BDT 5
& other benefits. crore, each Tk1.25 crore to the fund. Employees
from various banks also donated or are going to
Asset liability Management & Treasury donate their one / two days’ salary to that fund such
Every bank is very much concerns about these two as BRAC, EXIM etc.
segments with highest priority. These teams are
providing supports from home as well as from office Reference:
if required. https://tbsnews.net/economy/banking/36-private-banks-donate-
tk137-crore-pms-fund-sunday-63955
https://kpmghome
The above mentioned discussions can be summarized in below mentioned iconic format to have ideas on all the
responsiveness of the banks at a glance:

More Significant Moderate

Open Branches Products Management

Ensure health safety of all staffs &

clients Internal Control & Compliance

Cash withdrawal, deposits, positive Business Segments

pays, pay-order, bill collection etc Business Segments

Asset Product Selling

Active ATM/ CDM/ Call Center/
Agent banking outlets
Learning & Development

Work From Home & to some extent

from head office New Recruitments

Executions of encashment by Underwriting

Operations team, Collection & Legal

Asset Operations
Regulatory & Compliance

Technology, Communication & Media Trade Operations

Management

General Administration & Credit Administration

Procurement

Human Resource Payments

Asset-Liability & Financials

Management

Risk Management & Research

Question #8: Do you consider that your institution will be better off in terms of
managing the situation compared to other players in the industry-

Even though each banks in the industry is working at best to cope up with this pandemic situation,
BRAC Bank is managing this situation better than others. Not only customer and employee safety but
also BRAC Bank is working for society welfare. Some of the major actions that differentiate BRAC
Bank to others:

Introduce “Corona Virus awareness champion” in head office in which the

1 titled employee taught others about dos’ & don’ts’ about Corona virus.

To support employees who need to come branches in this pandemic situation,

2 bank arranges hand sanitizer and other safety equipment by its own.

BRAC Bank employees have sacrificed their 2 day salary to BRAC’s food
3 fundraiser campaign to help the low income people.

Moreover, BRAC Bank also donate money to prime minister’s “Tran

4 Tohobil”

Research team is doing work on COVID 19 in daily basis.

5

Offering 3 months payment deferment to the corona impacted clients. Other

6 than bad loan, all other Retails Loans (PL, HL, AL) are under this purview
Question #9: Are you assured of adequate support from the government, regulators
and other stakeholders in future-

As far seen, Government and regulators are taking corresponding necessary measures frequently to fight against
the fatal contagion COVID-19 to ensure proper health and safety along with the economic mobility. Till date, four
programs have been formulated to overcome the economic downturn:

i. Increasing government spending by focusing on employment creation;

ii. Providing financial support to ensure the job retention, maintain competitiveness of investors and
revitalize economic activities;
iii. Increasing social security by ensuring basic necessities of the impoverished people of the country;
iv. Increasing monetary supply.

But to make these measures sustainable in long run, time-to-time proper monitoring is firmly required. Otherwise,
all these measures will not bring the desired fruit out of it resulting the endeavors go in vain.

Future assurance of different industry sectors is tough to predict, specifically for export oriented industries. These
is a fear that once this lockdown is withdrawn, things will be as usual for the workers as it was previously because
ensuring safety and facility is too difficult in the densely congested factory places. But if this goes like this,
situation will become worst immediately. So, things will have to be done properly despite how tough it is because
once we live, economy will rise on that; but there will be no economy where health is hampered.

Finally, to get the best supports from our stakeholders, the news of good deeds and appreciating steps taken by
different organizations should be spread more and more because this type of positive news is a great source of
inspiration which will motivate the surrounding people towards better deeds for society.

Reference:
1. KPMG (23 April, 2020). Measures in response to Coronavirus disease (COVID-19)

------Ending Here With Thanks Note------

More References:

1. BRAC (April 2020). Rapid perception survey on COVID19 Awareness and Economic Impact
2. The COVID-19 Outbreak: How Has Bangladesh Fared? Retrieved from https://reliefweb.int/report/bangladesh/covid-19-
outbreak-how-has-bangladesh-fared
3. Fair Wear (13 April 2020). Covid-19 impact and responses: Bangladesh. Retrieved from https://www.fairwear.org/covid-19-
dossier/covid-19-guidance-for-production-countries/covid-19-impact-and-responses-bangladesh/
4. KPMG (23 April, 2020). Measures in response to Coronavirus disease (COVID-19)
5. https://unb.com.bd/category/bangladesh/bangladesh-economy-to-remain-strong-if-covid-19-challenges-managed-well-adb/48619
6. https://tbsnews.net/analysis/banks-should-focus-managing-liquidity-post-covid-19-market-72676
7. https://home.kpmg/xx/en/home/insights/2020/04/bangladesh-government-and-institution-measures-in-response-to-covid.html
8. https://thefinancialexpress.com.bd/views/policy-and-fiscal-supports-to-ease-covid-inflicted-banking-sector-woes-1587741893
9. https://blogs.lse.ac.uk/southasia/2020/04/03/long-read-coronavirus-and-the-bangladesh-economy-navigating-the-global-covid-
19-shutdown/
10. https://thefinancialexpress.com.bd/views/reviews/covid-19-economic-perils-and-the-next-budget-1586357705
11. https://thefinancialexpress.com.bd/views/columns/economic-fallouts-from-covid-19-1585582385
12. https://www.thedailystar.net/opinion/economics/news/navigating-the-socioeconomic-perils-covid-19-bangladesh-1890211
13. https://www.worlbank.org