Produ

ct
Famil
y:

Treasury /
MoneyMarket/Placem
ents

Product
Requirements
General
Characteristics
Brief Description

Volume of
transactions per
day/month
Basic Product
Requirements
Tenor - normal
contract periods
Fixed Maturity, Notice
and Overnight call

Rollover requirements

Interest
Interest Rate Type:
Fixed Rate or Floating
Rate
If Floating, tied to
what type of rates
(LIBOR etc)

Requireme
nts

Clarificati
ons

Placing of
funds in
other banks
(Interbank) ,
leasing or
any other
financial
institution
company in
Bangladesh.
20 per day
(money at
call and term
placement
put together)

These will
be done in
LCY only.
Only
Treasury is
involved in
these MM
operations.

any tenor
starting from
7 days,
1month,
3months, 6
months etc
Not
applicable.
Term
Borrowings
are matured
on the due
date.
Fixed rate.
DIBOR rates
are also
followed
(Dhaka
Interbank

rates)
Interest Day Basis
(360/360, etc) - give
details by currency
Interest Accrual
Frequency Daily/Monthly

360/360.

Interest Capitalization
Requirements, if any

No

Monthly/quar
terly or on
maturity.

Other Basis
are required
for future.
Interest
accrued are
taken to
profit on
month end
by debiting
interest
receivable.
(Adjusting
account Interest
received on
Balance
with other
Banks).
When the
cheque for
interest
from the
bank is
received, it
will be sent
to BB(if BB
checque),
and the
proceeds
will be
credited to
Interest
received
and income
A/C on
balance with
other banks.
May be
required in
future ,
option
should be
there

Any applicable tax on

interest and how Tax
is calculated?

Settlement
Approval process
Settlement of Foreign
Currency Deals?Are
Standard Settlement
Instructions (Routing,
Nostro etc) available
for Counterparties?

Settlement of Local
Currency Deals via
Central Bank

Advance
Income Tax
and Excise
duty are
deducted by
the counter
party and
cheque
received for
the net
amount. At
bank level,
entries are
passed for
the gross
amount and
deduction of
Tax (Advance
Income Tax)
and Excise
duty are
passed.

Money
receipt , deal
conformation
, FDR receipt
will be
received
from
counterparty.
No swift
messages.
FCY Deals
are not done.
Yes. Central
Bank acts as
the
settlement
agent for
different
banks.
Cheques are
received
from
different
banks for
principal and
interest and

Swift
messages
and online
instruction
to central
bank/counte
rparty for
transfer of
funds are
required in
future.

they are
deposited
with central
bank

Limits
Limit Type Revolving/Nonrevolving

Limit Product to be
used
Are sub products and
limits for sub products
allowed? (X amount
for Call and Y amount
for Fixed Maturity etc)

Financial
Accounting

Revolving

MM
Separate
limits are set
for overnight
and term
placements
for different
counterpartie
s.

Limit
process will
be done for
different
counter
parties and
they will be
presented
for approval
by
managemen
t. Limit will
be reviewed
every year
or whenever
managemen
t feels so.
Dealer
should be
able to
check the
outstanding
exposure
through the
system
counterpart
y wise
before
dealing.

on line
approval
process is
required

GL/Chart of Account
for Outstanding
Principal for Local and
Foreign Currency
deals

GL/Chart of Account
for Interest in Local
and Foreign Currency
deals

Account for Interest in

Local and Foreign
Currency deals

Dr. Balances
with other
Banks
Account
Cr. Balance
with
Bangladesh
Bank
Account
Interest
Receivable :
Dr. Adjusting
Ac - Interest
receivable on
Balances
with other
Banks
Cr. Income
Account
Interest
Received on
Balances
with Other
Banks.
When this
amount is
realised from
the other
Bank, the
following
entries are
passed:
Dr. Balance
with
Bangladesh
Bank
Account
Cr. Adjusting
Ac - Interest
receivable on
Balances
with Other
Banks.
Routed
through
Bangladesh
Bank
Account

GL Head :
Balance
with other
banks. The
amount with
individual
banks are
shown in
detail.

Dr. Balance
with other
Banks
Account
Cr. Balance
with
Bangladesh
Bank
Account
For Interest
Received
(through
Cheque): Dr.
Balance with
Bangladesh
Bank Acc.
Cr. Interest
Receivable
on balance
with other
banks
Account

For Interest
Receivable :
Dr. Interest
Receivable
on balance
with other
banks
account
Cr. Interest
Accrued on
balance with
other banks

Any other (Taxes,

Charges etc)

Confirmations and
Advices
Confirmations
required and medium
(Print/Swift - MTnnn)
for Foreign Currency
Deals
Advices (Debit/Credit)
required and medium
(Print/Swift) for
Foreign Currency
Deals
Confirmations
required and medium
(Print/Swift - MTnnn)
for Local Currency
Deals

Advices (Debit/Credit)
required and medium
(Print/Swift) for Local
Currency Deals

Brokers

Excise duty
and Advance
Income Tax

System
Generation
of tax
certificate
dealwise at
the time of
maturity
and
counterpart
y wise at
the end of
financial
year.

No foreign
currency
deals

Required in
future

No foreign
currency
deals

Required in
future

Confirmation
s are
received
from
counterparty.
Money
receipts
and/or FDR
Receipts are
received
through
person.
No advices
are sent at
present.

Particulars
of Security
record
should be
preserved in
system eg.
FDR
instruments
informations

Swift
messages
and online
instruction
to central
bank and
counterpart
y for
transfer of
funds are
required in
future.

sucurity
recorg
should be
preserved in
system eg.
FDR
instruments
informatons

Whether deals are

done via brokers?
Brokerage Calculation
Requirements

No Broker
dealing at
present

Brokerage Payment
Requirements
Are Broker limits
applicable and
requirements
Other
Requirements
Charges or
Commissions

no

Other Tax
no
Requirements
Archival Requirements Data is to be
preserved for
5 years as
per Central
Bank
guidelines
Dealer Limits
Relation to other
Profitability
LOBs/Business
of Bank
Processes

Deal Slip
Requirements

Dealslip will
be prepared
in duplicate
by the front
office and
one original
will be sent

May be
required in
future ,
option
should be
there

Money
market
deals are
mainly done
for
maintaining
the
statutory
liquidity
with central
bank.
These are
also used to
increase
profitability
of the Bank.
Will be
prepared
and
preserved
through
system.

to back
office.

Proce
ss
Requi
reme
nts
Busin
ess
Proce
ss
Deal
Proce
ssing

Activities

Accounting
entries

Check position
advised by Operations

Front office

Strike deal over the

trading
platform/phone/broker

Front office

Input deals in system

and check for any
limit breaches
Authorise deal and
print deal slip

Front office

Countersign if it
required

Yes

Send it to Back Office

Receive Deal Ticket
from Front Office

Front office

BO

At present
all the deals
are strike
with
different
banks/leasin
g
companies
over phone
and deal slip
is prepared
by the Front
office

There will
be four
authorisatio
n two at
front office
level and
two at the
back office
level.

Through
system

Deal
Confir
matio
n

Call the deal from

dealer's system and
input settlement
details. Also check the
supporting
conversations, broker
note

No broker
deals. All
the deals are
done with
banks/lease
companies
as
counterparty

Take up with higher

level if necessary

yes

Authorise deal

BO for
settlement
purpose

File the papers value

date wise
Verify with
counterparty's deal
confirmation . Record
confirmation.
Exchange Deal
confirmation with
Counterparty
Follow-up Non-receipt
of Deal Confirmation

BO

Match all inward

confirmations with
deals. If no deal
available then inform
dealer for action

No swift
messages
are now
used.

through the
system ,
statdard
approval
process
Debit:
Balance with
other Banks
account Cr.
Bangladesh
Bank
Account
(Balance
with
Bangladesh
Bank
account)

BO

No Foreign
currency
deals
back Office
Standard
practice is
the Money
receipt/ FDR
Receipt
which is
now
received
from other
banks.

Identify and resolve

discrepancies in DC

BO

Deal Modification

will be done
by fornt
office only
after getting
approval by
back office.

Deal
Settle
ment

Make payments for

placements on value
date

BO

other
require
ments

Reports and Enquiries

as provided
by the bank

Bo will
forward the
deal to
FO.after
modifiction
deal will be
again
forwarded
to BO
Dr.
Bangladesh
bank and cr.
Interest on
Balance
with other
banks.
(when BB
cheque is
received).
When
cheque on
some other
bank , this
will be sent
to clearing
through
main branch
and on
realisation,
they will
raise IBCA
on treasury.
Treasury
respond the
same and
credit to
Interest on
balance with
other
banksand
adjusting
A/c .

On Maturity :
Debit:
Bangladesh
Bank
Account
(Balance
with
Bangladesh
Bank
account) Cr.
Balance with
other Banks
account