Overview

Treasury division of Community Bank Bangladesh Limited consists of various activities with a developing with diversified asset characteristics from both Police Force and General Customers. With the rampant expansion of the Bank Treasury Division is playing a pivotal role in its operations considering internal and external variables in competitive market. Treasury Division consists of four important desks - investment & govt. securities desk, money market operation desk, foreign exchange operation desk and ALM desk are operating in full swing. Thus, wide variety of products and services with variant nature are dealt to be dealt as the growing portfolio of the bank.

The Treasury Department is also regarded as a support Center, which generates income by trading instruments in the Financial and capital Market and utilize and procure the liquidity at the optimal level that assists generate more revenues. Treasury Division is constituted with three integral offices such as; Front, Mid and Back as per regulatory requirements.

Major Functions of Treasury Division:
  • Liquidity Management
  • Management of Statutory Requirements (CRR and SLR)
  • Investment (Fixed Income, Capital Market and other Non-listed instruments)
  • Trading of Forex& Money Market Instruments (Short-Term Markets)
  • Asset Liability Management
  • Risk Management

Money Market

The money market states such an open market where banks and financial institutions play as intermediaries at over the counter (OCT) basis with having an age of less than a year. Interbank clean and collateral based (REPO) lending and also with the central bank by dint of REPO, ALS, Reverse Repo Auctions and Treasury Bills (91,182 and 364 Days).

Considering the bank’s assets liabilities position and market liquidity, CBBL treasury offers following types Money market products to wholesale participants.

Overnight/Short Notice Transactions

Call Money
Lending/Borrowing

Call Money
Lending/Borrowing

Short-Notice
Lending/Borrowing

Term Placement

Term Lending/Borrowing

Repo/Reverse Repo

Inter Bank/Central Banks
Repo, Rev. Repo,ALS

Foreign Exchange

Foreign Exchange market is known as the market in which currencies are traded. The Forex Market is expanding across the country due to extended business in home and abroad.

Trade is conducted over the counter (OTC). The international forex market is open 24 hours a day, five days a week, and these currencies are traded worldwide among the major financial centers of London, New York, Tokyo, Zurich, Frankfurt, Hong Kong, Singapore, Paris and Sydney.

Community Bank has entered into this market and expecting to expand with all types of customers

The following products are usually offered in this market

Spot Transactions

Spot transitions are of
Forex, settled after two
days

Forward Transactions

Transactions beyond spot
settled after a specific
period

SWAP

Two parties transect certain
sum at a spread and
commit to reverse the
transaction at different
legs.

Fixed Income Investment

Fixed Income investment is such Treasury Instruments issued by Bangladesh Government that consist of fixed return/ coupon. Two types of instruments are there principally

  • 1.Bangladesh Government’s Treasury Bond
  • 2.Bangladesh Government’s Treasury Bill

Also referred as BGTB

CBBL Treasury's Fixed Income desk is an active player and participant in the fixed income and interbank repo/reverse repo markets with a short-term and long-term horizon. The Bank also works as Primary Dealer (PD) in the auction.

CBBL's Fixed Income desk assists its individual and institutional clients in investing in fixed income securities that fit their long term goals in terms of yield, liquidity, and rating with the ultimate aim of building a well-diversified portfolio that can better sustain market volatility, thereby enhancing its overall performance.

CBBL Treasury’s Fixed Income desk main products are

  • Investment In Government Securities Tradable securities issued by the government include treasury bills (T- bills) of 91, 182, and 364-day maturities and Bangladesh government treasury bonds (BGTB) of 2, 5, 10, 15, and 20-year maturities.
  • CBBL Fixed Income On behalf of CBBL's customer, treasury purchase or sell T-bill &T-Bond at a market based negotiable price which ensures their portfolio return and risk diversification.

Investment Desk

Investment desk in Treasury Front Office operates within the policy frame approved by the Board of Directors of the Bank. The philosophy is to manage and maximize income within certain parameters and limits. It also includes use of effective duration, rate shock analysis, as well as total return to analyze and manage the investment portfolio and to determine the effect of movements on the yield and value of the bank’s portfolio. Investment desk operates within available investment opportunities in the country and abroad. The desk keeps an eye on the market movement to reap on every opportunity and to get the best of every penny invested and maximize profit as well as shareholders value

Asset Liability Management

Asset Liability Management is one of the major functions of Community Bank Bank Treasury. Community Bank has a highly efficient ALM Desk, which is an independent unit within the Treasury Department.

The ALM function comprises management of liquidity, maturity profiles of assets and liabilities, interest rate risks and forex risk. ALM desk officials prepare ALCO paper incorporating local and international economic update, market liquidity forecasts, interest rate projections, balance sheet analysis and recommend measures to be taken to optimize balance sheet whether to reduce or increase deposit and lending rates.

ALM desk guides ALCO in changing lending and deposit rates with proper analytics and better forecasts. A new ALM policy was formulated by ALM desk keeping BASEL III liquidity ratios (LCR & NSFR) in mind and central bank’s ALM guidelines into active consideration. Change in deposit mix reducing dependency on term deposit reduced substantial costs for the bank.

Government Securities Investment Window

Government Securities Investment Window’ has been formed for smooth running and speedy servicing of Govt. Securities transactions of the Bank as per DMD Circular no-04/2020 dated 21-07-2020 regarding establishing Govt. Securities Investment Window for providing Cliental Services.

The activities of the Govt. Securities Investment Window are the following
  • To provide the probable investors of Treasury Bill and Bond with the information of Coupon, Yield and Investment Procedure.
  • To take necessary steps to open the Securities Account for Individual and Institutional investors.
  • To advise to open Bank Account for Selling – Buying of Securities, Payment of Coupon and Face Value at the Maturity Date and the overall security for the Transactions.
  • To Buy and Sale securities following the requisition of the client.
  • To transfer Coupon, Face Value at the Maturity and money relating to transactions to the account of the client.
  • To perform activities by frequent communications with own Treasury Division
  • To coordinate of various activities on DSE Trading Platforms along Bangladesh Bank Trading Platform

The following personnel carry out the responsibilities of Government Securities Investment Window. For any query regarding Government Securities, please feel free to contact the following officers –

Sln Name Designation Contact no Division/Branch Email
1 Malik Rakib PO 09612712200-122, 1675009445 Treasury Front malik.rakib@communitybankbd.com
2 Md. Mokbul Hossain MTO 09612712200-122, 01734679269 Treasury Front mokbul.hossain@communitybankbd.com
3 Husna Nasrin FAVP 09612712200-149 Treasury Back husna.nasrin@communitybankbd.com
4 Mohosin Md. IkramulHasan FAVP 09612712220, 01732071464 Corporate Branch Ikramul.hasan@communitybankbd.com

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