In December, nearly half of Bangladesh's remittances were processed through Islamic banking channels, totaling Tk 10,619 crore, which is 48.41% of the total remittances. The Bangladesh Bank released its first monthly statistics on Islamic banking, highlighting a significant increase in remittances through these channels compared to the previous month. Full-fledged Islamic banks saw a rise in remittance receipts, while conventional banks' Islamic branches experienced a slight decline. The central bank emphasized the importance of Islamic banking in the financial sector and suggested the need for separate regulatory frameworks to support its growth.

Bangladesh's macroeconomic performance has improved since joining the IMF's $4.7 billion loan programme, yet foreign currency reserves continue to deplete, pressuring the taka. The IMF suggests greater exchange rate flexibility to stabilize the external account, particularly addressing the financial account deficit. Despite improvements in monetary and fiscal policies, the financial account underperforms, with a significant deficit compared to the previous year. The IMF's recommendations aim to enhance economic stability, though Bangladesh has struggled to meet certain loan conditions, including maintaining net international reserves.

Exim Bank's profit decreased by 9.4% to Tk 337 crore in 2023, despite being the second highest in six years. The decline is attributed to increased provisions against loans. The bank plans to merge with Padma Bank, which has a high default rate on loans. Exim Bank's earnings per share fell, but net asset value and operating cash flow per share increased. The bank recommended a 10% cash dividend for 2023, consistent with previous years. The merger's success depends on asset valuation consensus, with Bangladesh Bank as a mediator if needed.

Despite efforts to enhance financial inclusion, nearly 72% of Bangladesh's population over 15 remains unbanked, according to a Bangladesh Bureau of Statistics survey. The lack of alignment between banking services and the needs of low-income populations is a significant barrier. Experts suggest that digital finance, including mobile financial services and digital banking, could improve inclusion rates. Regulatory challenges and the need for customer-centric services are highlighted as areas for improvement.

The article highlights the financial struggles faced by middle and low-income families in Bangladesh during Eid-ul-Fitr due to a severe cost-of-living crisis and high inflation. Many families, like that of Kafil Uddin, are unable to afford traditional celebrations, such as buying new clothes or traveling to their village homes. The World Bank reports a significant increase in poverty levels, with higher food prices impacting poor households the most. While consumer demand typically rises during Eid, some sectors, like real estate and photography, experience a downturn. Businesses like Broccoli Restaurant face challenges in maintaining operations during Ramadan.

BRAC Bank PLC achieved a 35% profit increase in 2023, reaching Tk 827.50 crore, driven by a focus on SMEs and technology-based services, adding over 3.60 lakh new customers. The bank's balance sheet growth, with a 34% rise in deposits and a 26% increase in loans, outpaced national averages. The board recommended 10% cash and stock dividends, and approved the audited financial statements. Managing Director Selim RF Hussain attributed the success to strategic focus on SMEs, app-based services, and strong governance.

Ahead of Eid and Pahela Baishakh, Bangladeshis are considering buying a single panjabi for both occasions due to financial constraints and the close proximity of the festivals. Retailers like Rang Bangladesh and Anjans have noted better sales and increased production, respectively, despite the rising cost of raw materials and inflation above 9 percent. The demand for panjabis has grown significantly over the past two decades, with the attire now accounting for about 60 percent of men's clothes made for these festivals, according to Muslim Dhali of the Keraniganj Garment Traders and Shop Owners Association.

Shwapno, a leading retail chain in Bangladesh owned by ACI Logistics, has seen a six-fold increase in sales over the past decade and is aiming for a $2 billion turnover in the next seven to eight years. With over 440 outlets, the company plans to expand to 4,000 stores. Executive Director Sabbir Hasan Nasir highlighted Shwapno's operational success, including operating profit for the last two years and positive operational cash flow for five years. The company has doubled its gross margin to over 18 percent through scale benefits and direct sourcing from farmers. Challenges such as VAT, consumer adoption, location sourcing, supply chain disruptions from the Russia-Ukraine war, and import restrictions are being addressed. Shwapno is also focusing on online sales, aiming for them to contribute 10 percent of total revenue in seven years, and has received global certifications for good agricultural practices and quality assurance.

Credit card spending in Bangladesh decreased by 3.40 percent in November compared to October of the previous year, with domestic transactions falling by 2.18 percent and transactions abroad by 9.51 percent. The decline was attributed to economic and political uncertainties ahead of the national parliamentary election. Md Mahiul Islam of BRAC Bank expects spending to grow again in the future. VISA, Mastercard, and American Express were the primary cards used, with the highest amount of foreign transactions occurring in India. Department stores accounted for the majority of credit card transactions within the country.

The gender gap in mobile financial services (MFS) in Bangladesh has widened significantly over the past five years, with women's account ownership falling from 48.28% in December 2019 to 41.83% in December 2023. Despite a 152% increase in the total number of MFS accounts, the proportion of accounts held by women has decreased, while men's ownership has increased. Experts attribute this disparity to lower digital and financial literacy among women and restricted access to finance. A GSMA report highlights that Bangladesh has the third-highest gender gap in mobile money account ownership globally. To bridge this gap, experts suggest increasing digital and financial literacy among women and providing incentives for MFS usage.