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
against this COVID-19 pandemic. So far this
contagion has spread to 210 countries and regions of
the words, significantly affecting the global
economy. In Bangladesh the first infection was
detected on March 8, 2020. From then the panic
among people is towering day-day-day which is
impacting the natural lifestyle, health, economy, i.e.
every normal situation in unprecedented way.
Health Impact:
Being a densely populated country with more than
160 million-plus population, Bangladesh is highly
vulnerable to this contagion. Besides, the healthcare
facilities in this country are too limited to serve this
vast demography. Despite having a three-month
head start since the outbreak began in China, we are
yet struggling to track and test for the disease. But
the light of hope is unlike other countries, yet the
death percentage is not that much higher in our
country, behind which our Government’s immediate
and prudent steps of lockdown played immense role.
Up to 25 April, total infected number of people is
5,416 of which death percentage is 2.7 pc. Though
death number is under control, the single day new
infection number is increasing. Along with elderly
and sick people, physicians and police professionals
are the most vulnerable now which calls for special
care of these segments.
Besides, patients of other diseases are facing trouble
to get proper treatment in the hospitals. Specifically
the chemo therapy and dialysis patients are suffering
a lot.
Livelihood Impact:
Till now, there is no vaccination for this virus.
Therefore, isolation and lockdown are the only
means to stop the spread of this deadly virus. But in
our country a large number of people live from hand
to mouth. So here the tradeoff between health and
economy is not an easy task to achieve. Almost all
professionals are suffering, but suffering among the
low income group is severe. According to a survey
conducted by BRAC amongst less economically
fortunate section, about 16% of people have no food
in their home and 29% reported having 1-3 days’
worth of food only. Net income loss of people living
in the urban areas is 69%, while in rural areas it is
worse than that, i.e. 80%. So, undoubtedly
livelihood is the topmost impact of this epidemic.
Furthermore, despite the government’s market
monitoring efforts, prices of essential goods have
shot up in some places.
Industry & Trade Impact:
Almost all the economic sectors such as trade,
remittances, supply chain, regional collaboration,
production, transportation, tourism and other service
sectors are suffering heavily. Things are in stagnant
due to lockdown and unpredictability. IMF declared
that a global economic recession has already started.
Stock markets across the globe have witnessed
drastic fall over the last few months. Remittance
inflow of our country has slashed to almost half this
month (April). Activities of professionals working
specifically in the marketing and sales, operation and
production domains are being hampered most.
Export oriented industries are the worst victim of
this pandemic. According to a research from the
Center for Global Workers’ Rights of Pennstate
University, more than half of Bangladesh suppliers
have had the bulk of their in-process, or already
completed, but production cancelled. Many factories
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
during the layoff period, according to the law. From
BGMEA website, till 13 April 1136 factories
reported a loss of USD$3.15 billion in
cancelled/postponed orders, equivalent to 976
million pieces. A staggering 2.26 million workers
are affected thus far. If the recession persists for a
longer period, global economic growth could come
down to 1.5%.
Economic Impact:
The COVID-19 pandemic, however, stands to
impact Bangladesh in unprecedented ways,
unraveling the cracks in its economy and undoing its
remarkable economic progress of recent decades.
Despite high GDP growth projections, Bangladesh
went into 2020 with some ominous cracks in its
economy. The amount of non-performing loans in
the country’s fragile banking sector has risen to 4.43
percent of the GDP, while the country’s fiscal deficit
rose to around USD $13 billion in FY 18-19, the
highest in 11 years. And this year it has gone more
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
pandemic is shutting down the economy
everywhere, equally, with frightening force and
totality. Since January, the impact of the
outbreak has unfolded from a China-centered
supply shock, which sent shockwaves across
global trade and disrupted supply chains. There
is a high chance of ferocious demand shock
hurting consumption and investment in China,
Europe, and the United States. Policymakers
expect a sharp global recession in H1 2020 in the
vast majority of developed and emerging
economies, followed by a U-shaped recovery.
(Source: World Bank)
Projected economic loss 2 trillion BDT
For the entire course of the closure
Taka each day
Service Sectors:
20Bn
60% 33%
collection for the July-January period of this year is
reported. The COVID-19 outbreak will further
expose these vulnerabilities as the Asian
Development Bank (ADB) estimates a worst-case
economic reduction of 1.1 percent, equivalent to
USD $3 billion. The projected GDP growth of 8.2
percent for 2020 may decline by 2 to 3 percent - that
is, economic growth may settle somewhere between
5 to 6 percent.
But as a nation, Bangladesh is well known for its
resilience, and we have many times in the past,
surpassed expectations and overcome all obstacles in
the end. Following on those, it is presumed that
Bangladesh will eventually emerge as a stronger
nation after weathering the perils of COVID-19.
Developing countries are facing distinct pressures
and constraints which make it significantly harder
for them to enact effective stimulus without facing
binding foreign exchange constraints. And as these
countries do not issue international reserve
currencies, they can only obtain them through
exports or sales of their reserves. But, exports
themselves require significant imports of equipment,
intermediate goods and financial business services,
which are being bended terrifically now. So the
same financial turmoil we the Bangladeshi industries
are going to face. However, plan movements,
government’s aids and controlled behavior can help
our industry sector to recover in the ‘U’ shape at the
earliest. The projected loss has been presented in a
diagram below:
33 Bn
Industries: Agriculture:
11Bn 2 Bn
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
shared by Asian Development Bank regarding
Bangladesh Business sectors and overall economy.
Five major points described by ADP have been
presented below:
1. Bangladesh economy continued to perform
well despite the global economic slowdown
and can remain strong if COVID-19
challenges managed well.
2. Government interventions & addressing
cash management challenges and broader
resiliency issues due to COVID-19 related
shutdowns and economic knock-ons could
help minimize impact on Bangladesh
economy.
3. Inflation will stay in check in both years,
and expected to slightly edge up to average
5.6% in FY2020 on higher food prices as
well as nonfood prices on account of higher
domestic natural gas prices. In FY2021, it
will ease to 5.5% on better supply condition.
4. ADB’s preliminary estimates indicate that
about 0.2% to 0.4% of Bangladesh GDP
may be lost due to spillover effects of the
global COVID-19 pandemic.
5. If a significant outbreak occurs in
Bangladesh, the impact could be more
significant.
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:
COVID-19 hits banks of Bangladesh in an
unfortunate time when banks are trying to cope
up with the directive of 6% and 9% caps to
interest rates on deposits and loans.
▪ Recently private sector credit growth is in
declining mode which will be persisted since
banks are doing their activities in a smaller scale
and also have to close most of the branches for
pandemic situation.
Unemployment Rate:
Efforts to stop spread of Corona Virus especially
closure of non-essential business creates an
increase in unemployment rate throughout the
world.
▪ In Bangladesh nearly .15 million
people are waiting to go aboard
maximum number of which now
goes back to their home and this
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
could not take proper measures for arrangement of
enough Corona testing kits and delivering medical
supports from the very beginning of the infection
detection, contagion tackling is being handled by our
government to a very far extent. At the very first
moment of positive COVID identification in our
country, Government has immediately closed all the
public and private universities, offices, factories,
transports to stop gatherings and close contacts of
people for tackling the spread of this contagion. This
immediate lockdown undoubtedly saved thousands
of people’s life controlling the infection to a far
extent.
Also to protect the economic backdrop and
uncertainty government is playing very active role.
New new regulations of stimulus packages and
refinance schemes are being announced time to time.
The first bailout/stimulus package was announced on
25th March; BDT 5,000 crore disbursement for the
salaries and wages of export oriented industries to
mitigate the impact of coronavirus on the country’s
economy. Till April 26 a total of BDT 77,750 crore
support has been announced in the form of two
stimulus packages and five refinance schemes
covering the Cottage, Micro, Small and Medium
Enterprises, Industries and Service Sector
Institutions, Export-Import raw materials and
shipment facilities, Low income professionals,
Farmers and Micro-businessmen. The amount is
nearly 2.60 percent of the country’s total GDP. Also
Government has announced habitation and
employment opportunities for approximately
100,000 people in Bhashanchor and assured that
benefits will be provided for people working in
essential services.
Besides fiscal policies, government is also taking
monetary measures to combat the novel corona
virus. Monetary measures included widening social
safety net coverage for poor people, food
distribution at a lower price among the poor people,
as well as increasing monetary supply. To inject
more money supply or increase liquidity into
market, central bank has cut the CRR ratio in two
steps, from 5.50% to 5% on March 24 and from 5%
to 4% on April 9. This cash reserve cut would inject
an additional amount of BDT 19,200 crore into the
economy, according to an estimate of BB. Also to
boost the investment BB has raised the bank’s
advance-deposit ratio (ADR) by 2% for conventional
banks from 85% to 87% and investment-deposit
ratio (IDR) by 2% for Islamic banks from 90% to
92%. This would result an additional BDT 27,000
crore lending capacity of commercial banks. Besides
the two major initiatives, BB also slashed the repo
rate to 5.25% which was 6% previously to make
funds cheaper for banks and also has decided to
purchase government securities from the secondary
market. Banks having met their SLR ratio
requirements can sell their excess government
securities to the Bangladesh Bank at the market price
under this scheme.
To ease the livelihood of mass people Bangladesh
Bank announced moratorium on loan payments until
30 June 2020 which will protect the borrowers to fall
into default category. BB has announced that
classification of loans as of 1 January 2020 will
remain unchanged till 30 June 2020. For foreign
traders BB has extended the export proceeds’
receipt. EDF loan tenure, back to back LCs usance
period.
The government has repeatedly been asking people
to stay home in efforts to contain the spread of the
virus. Recently Government has taken steps to
appoint 2,000 doctors and 4,000 nurses for the
treatment of coronavirus patients.
Along with Government regulations and regulators’
responses, industries are also actively responding to
this situation. Pharmaceuticals industries have kept
their activities continued in this tough time to ensure
enough medicine and health facilities for the mass
people. Power sector is also continuing their support
in full way through this lockdown period. Banking
industries are also operating their activities in
limited scale. They are making services digitalized
as much as possible. Banks are cutting the interest
rates for their clients and customers and also
providing grace periods to reduce the economic
burden of industries of different sectors. MFS (e.g.
bKash, Rocket, Nagad etc.) have also increased their
monthly transaction limit and reduced charges.
Large and local conglomerates are also contributing
a lot. Bangladeshi multinational brand Walton has
distributed BDT 77 crore amongst the Walton
family, their employees and workers. They also
donated BDT 7 crore to Government’s Workers
Welfare fund, BDT 10 lakh to Bidya Foundation
which is working for free food supply of 40,000
poor people. They also circulated 5,000 PPE to
public hospitals. Moreover, they are running
awareness and sanitation activities across the
country through about 20,000 sales points.
Country’s another leading industrial conglomerate
Akij Group is building 301-bed hospitals on their
own land in Dhaka to treat patients infected with
coronavirus. They have also provided free masks for
the mass people and also are distributing foods
amongst poor.
We, the BRAC bank family also have donated BDT
5 crore to Government fund, BDT 1 crore 76
thousand to poor people, and provided 6000 PPE to
hospitals.
Reference:
1. KPMG (23 April, 2020). Measures in response to
Coronavirus disease (COVID-19)
2. Dhaka Tribune (22 April 2020). Banks’ liquidity
increases by Tk46,000cr after BB’s policy
interventions.
Question #5: The nature of impact you have and will have in your Institution.
Like other peer banks in Bangladesh, BRAC Bank is
also facing some challenges now and the impact of
these challenges likely to be long-lasting in future
across many sectors even after the end of this
pandemic.
1. Health & safety Impact: At this moment the
major risk of this COVID pandemic is the
health risk of employees & customers.
▪ Although BRAC BANK has taken all possible
measures to cope up with this risk but many
branches needs to be open due to transaction
purpose and in this stage of community
transmission branch employees are exposed to
the spreading risk of virus.
▪ However, bank has to carry this risk for long
time. Bank need to assure health & safety
measure to stop spreading virus in office
premises even after end of this pandemic
situation.
2. Credit Risk: Corona situation makes the
credit risk worsen for banks.
▪ Cash flow of many consumers and businesses
will collapse due to closure of different small
business, cancellation of RMG orders and
adverse hit in different industries
▪ In this given economic context both commercial
and retail non-performing loan will increase.
▪ As we know SME sector is one of the mostly
affected areas and BRAC Bank is a SME
focused bank, bank will face default risk in this
sector.
▪ Moreover, many people will lose their jobs by
which borrowers will struggle to pay the
monthly interest payments. In future Bank will
also struggle to find good borrowers.
3. Liquidity Crisis: It has been anticipated that
Corona pandemic situation will make liquidity
crisis aggravated.
▪ Already people started to withdraw money
from banks.
▪ Moreover, due to extended period of general
holiday, loss of income, closure of business,
increasing trend in unemployment etc. people
started to live with their savings and create a
huge queue in front of branch.
▪ Lower demand for loan and higher demand
of money withdrawal will decrease the
money supply in market.
4. Market Risk: Along with other impacts, Bank
will face market risk also.
▪ The interest rate fluctuation, changing in foreign
exchange rate, world recession, cancellation of
international orders and overall global economic
context surely create an impact in banking
industry.
▪ Since BRAC Bank is an active player in foreign
currency market, risk will be confronted in
foreign currency market.
▪ Bank has to deal with the slow growth in LCs
and vulnerable capital market.
5. Cyber Threat: In this era of virtual shifting
cyber security is the major concern for banks.
▪ To slow down the spread many employees of
BRAC Bank is working from home using VPN.
Without proper monitoring any cyber fraud may
happen.
▪ E-mail Phishing, SMS Phishing, Ransom-ware,
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
dramatic slowdown in the overall life style and
economy of the world where Bangladesh became
a victim too. The exponential spread of the virus
and its deadly effect made it clear that it has the
potential to wreck the economy. This pandemic is
a different kind of shock. Never before have
modern economies shut down at the drop of a
hat. Pressure on the banking system is growing
and higher defaults on debt are imminent. And
many now expect a shock to the financial sector
similar in magnitude to the 2008 crisis. (Source:
ADB)
Like the health experts, bank supervisors are
responding to a fast-moving and extraordinary
situation. And so our bank is also doing. Here we are
going to present a swift discussion on the measures
BRAC bank has taken to address this pandemic
situation as well as how have been dealing with it.

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

24*7 our Call Center is
active. Clients can get the
solution via dialing
16221 at any time.
Client safety is the highest
priority of the Branches &
Outlets. Sanitizers &
thermal scanners are
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
the maximum number of
the employee to work
from home with all the
necessary equipment
2. Sanitizers, masks & thermal
scanners are being maintained in
all the branches. Clients are not
authorized to enter without
masks. Necessary distances
maintain is also mandatory.
3. Necessary medical facilities
have been ensured & prompt
measures can be taken at
any time. Insurance facilities
can be availed by all
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
and follow all the guidelines provided by them
meticulously.
4. Business Continuity plan:
BCP has been prepared on an immediate basis
and rolled out with immediate effect.
5. Liquidity & Cash Management:
Liquidity crisis is the main concerns of banking
industries. BRAC bank previously took the
initiative to be well maintained on liquidity side.
Asset Liability Management team is monitoring
the liquidity status all time.
6. Tech Management:
Technology team is providing all the IT related
supports consistently so that employees can
work from home deliberately and the branch
people also can work without facing any
disruption.
7. Cyber Risk Management:
Information Security team took necessary
measures to diminish cyber-attacks and this
team is also making the entire staffs aware abbot
the cyber risks.
8. Financials Management:
Finance team is looking after the regulatory
reporting from home and some from head office
if required. They are also planning the coming
budgets, methods of covering the loss of April &
May, financial statements etc.
9. Branches, Outlets & ATMs-CDMs Management:
Branch Governance team is monitoring & is
helping all the branches with best efforts to
ensure uninterrupted banking service.
Head office Alternate Banking team is
supporting agent banking outlets so that services
could be provided staidly to the very rural areas.
This team is also looking after the ATM booths
to ensure distinct performances.
10. Internal & External Communication Management:
Communications team is also proactive to do the
right communication in the right time among the
internal staff as well as external media & clients.
Company Secretariat team ensured time to time
communication with the board members to get
their directions properly.
11. Risk Management & Research:
Risk identify & control is mandatory is such
uncertain situation. Risk management unit &
Research unit are doing their best to let everyone
know about the forecasting risks and research
works are being shared with the relevant
stakeholders to make them aware.
12. Daily Banking Operations Management
Operations teams are active to support the
branches to provide the clients encashment
facilities.
13. Legal & Defaulter Management:
Legal, Collection & SAM teams are active to get
the payments clear so that credit risk can be
framed within the limit and the communication
with the court can be relentless.
14. Staff Benefits Management:
Human Resource team is very much concern
about the health safety of the employees and
they are also lively to provide the compensation
benefits on time to all the employees. The
regulatory guideline on branch staff benefits and
insurance will also be followed time by our HR
Payroll team.
15. Third party Vendor Management:
Procurement team is dealing with the third party
vendors time to time to maintain the supply
chain of important equipment.
16. General Administration:
GSS team is fully prepared to give any kind of
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
always active to do required client
communications.
18. CSR (Corporate Social Responsibilities):
last but not the least Bank also involved in
various CSR (Corporate Social Responsibilities)
activities as the pandemic has an adverse impact
& is crucially destroying the livelihood of
unprivileged community of the society. BRAC
Communication team is continuously giving
efforts to aware the people about COVID 19 and
necessary safety measures via Facebook post,
LinkedIn post, BBL website and etc. Various
environment related posts are also being shared
in our Facebook page to make an effective
change among the people. Some posts from
social media are appended below for reference:

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:

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

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