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CANADA BANGLADESH BANK

Regulatory Framework

A proposed digital Islamic Bank in Bangladesh

  • Digital Banking Guideline, published by Bangladesh Bank on 15 June 2023.
  • Bank Companies Act, 1991
  • All guidelines published and (to be published) by Bangladesh Bank like Risk Management Guideline, Cyber Security Guideline, Islamic Banking guideline etc.
  • Foreign Exchange Regulations Act etc.
CANADA BANGLADESH BANK

Bangladesh’s readiness for Digital Banking

Rational is

  • 170 million’s population
  • 55% smart phone penetration
  • USD 2793 per capita GDP
  • Over 10 million thriving small business.
  • 150 million NRBs who struggle to send money home, get credit.
  • It is a very large untapped informal credit market.
CANADA BANGLADESH BANK

Who we are looking for as Investors:

  • Local and foreign individuals who have both clean money and experience in the latest technology like Artificial Intelligence, Machine Learning Cyber Security etc.
  • Foreign Banks, Financial Institutions, Exchange Companies, MFIs, Fin-techs etc.
  • Individuals and companies committed to Islamic values and interested to get involved with an Islamic bank.
  • Non-Resident Bangladeshis.
How it’s work

Summary proposal of Canada Bangladesh Bank

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Shareholding Requirement
  • Total minimum paid up capital = BDT 1250 million’s (USD 11.6 Million’s)
  • Share can be held by an individual or business entity/group.
  • Maximum shareholding = BDT 125 million’s (USD 1.16 Million’s) - 10% of total share.
  • Total minimum paid up capital = BDT 1250 million’s (USD 11.6 Million’s)
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Directorship
  • There can be 11 to 20 directors.
  • One can be director with minimum sponsorship (BDT 50 lac) if he fulfils other criteria.
  • 2% equity will be required once the company goes for IPO (mandatory within 5 years).
  • Maximum number of directors from a family - as per latest amendment of BCA 1991.
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Year 1 Financial Projections
  • Customer Acquisition: 500K
  • Revenue @BDT 1000 per customer: 500M
  • Profit before tax: 100M
  • Accumulated Profit: (900M)
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Customer Interface
  • Mobile Application – customers having their own smart phone will install and use the app will do banking through app.
  • Website – An alternative or backup channel for all segment of customers.
  • Customer Experience Center – customer with no smart phone, laptop or desktop and who requires training and guidance to use app/website.
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Products
  • Current Account
  • Savings account
  • Term Deposit
  • Goods Finance, SME. (Vehicle etc.)
  • Standard Ijarah
  • Forward Ijarah
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Proposed Shareholding/Equity
  • Total Paid up Capital: BDT 2500 million’s (USD 23.15 Million’s)
  • Three local RMG companies: 30% (BDT 750 Million’s or USD 7 Million’s)
  • Eligible Individuals with IT background: 50% (BDT 1250 Million’s or USD 11.58M)
  • Two foreign financial institutions: 20% (BDT 250 Million’s each)
  • One local IT Company: 5% (BDT 125 Million’s or USD 1.16 Million’s)
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Projected Capital Expenditure
  • Total Budget – BDT 1000 million’s (USD 9.26 Million’s)
  • Core Systems – BDT 500 million’s (USD 4.63)
  • Call Center and Complaint Management Systems – BDT 70 Million (0.65 Million’s)
  • IT Infrastructure – BDT 250 Million’s (USD 2.32 Million’s)
  • Head office – BDT 80 Million’s (USD 0.75 Million’s)
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Year 2 Financial Projections
  • Customer Acquisition: 500K
  • Revenue @BDT 1000 per customer: 2000M
  • Profit before tax: 400M
  • Accumulated Profit: (500M)
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Other Products and Services
  • Payments (Bill, Fee, transfers – BEFTN, RTFS, QR Code etc.)
  • Remittance (both inward and outward)
  • Recurring Deposit
  • FCY accounts for NRBs
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Sponsor and Director Requirement
  • At least 50% sponsor directors and shareholders have to have experience in different fields of information technology like artificial intelligence, machine learning, cyber security, financial technology, data science etc.
  • Have to sign capital maintenance agreement
  • Can not be defaulter, director of another bank.
  • Capital has to be from clean, unencumbered money, can not be from loan.
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Projected Capital Expenditure
  • At least 50% sponsor directors and shareholders have to have experience in different fields of information technology like artificial intelligence, machine learning, cyber security, financial technology, data science etc.
  • Have to sign capital maintenance agreement
  • Can not be defaulter, director of another bank.
  • Capital has to be from clean, unencumbered money, can not be from loan.
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Year 3 Financial Projections
  • Customer Acquisition: 500K
  • Revenue @BDT 1000 per customer: 5000M
  • Profit before tax: 1000M
  • Accumulated Profit: 0
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CANADA BANGLADESH BANK

Contact:

We are looking for only serious investors. If you are the one, please contact:

SARKER AHMED MUSTAQUE
Initiator of Canada Bangladesh Bank
Email: mustaque@canadabangladeshbank.com
Mobile:1514-608-3122, Fax:514-274-5793

Thank You