International Business operations

International business in Bangladesh has experienced significant growth in recent years, driven by the
country’s strategic location, a large consumer market, and favorable economic policies. The nation's
export sector, particularly textiles and garments, plays a crucial role in global trade, while foreign direct
investment (FDI) continues to increase in diverse sectors such as technology, infrastructure, and
manufacturing. Banks in Bangladesh play a pivotal role in facilitating international business by
providing essential financial services such as trade finance, foreign exchange, and cross-border payment
solutions. Commercial banks and specialized financial institutions actively support importers, exporters,
and multinational companies through working capital financing, letters of credit (LCs), and risk
management products. Additionally, Bangladesh’s banks are key players in facilitating foreign
remittances, which are a significant source of foreign currency inflow. With increased globalization, the
country's banks are also improving their digital capabilities, offering more efficient international money
transfers and online trade services, thus enhancing Bangladesh’s competitive position in the global
marketplace. The integration of modern banking technologies, alongside regulatory reforms, has
positioned Bangladesh as an emerging hub for international business, while the banking sector's
continued growth is essential in maintaining and expanding the country's international trade
relationships.

In 2024, Bangladesh's economy faced another year of significant challenges, similar to the global trend.
The country experienced a continued downturn in key economic activities, including the balance of
payment deficits, budget shortfalls, declining foreign exchange reserve, a contraction in remittances, a
depreciating currency, rising income inequality and the demand-supply imbalance. The banking sector,
too, dealt with considerable volatility in the foreign exchange (FX) market, exchange rate fluctuations,
and the implications of downsizing various export funds. Despite these obstacles, Southeast Bank has
successfully managed its FX liquidity, ensured timely payments of all letters of credit (LCs), and met
other foreign currency obligations. Considering the ongoing FX liquidity constraints and in alignment
with the monetary policy of Bangladesh Bank, Southeast Bank has focused on promoting import-
substituting economic activities while discouraging the import of non-essential commodities. In this
context, the International Division has played a pivotal role in ensuring that Southeast Bank remains
compliant with the evolving directives and guidelines set forth by Bangladesh Bank. The team has been
actively involved in managing foreign exchange (FX) operations, optimizing the use of available
liquidity, and ensuring that importers and exporters adhere to the policies promoting sustainable trade
practices. By focusing on import-substituting industries, Southeast Bank is also supporting the
government's broader goal of reducing the dependency on foreign goods and enhancing the domestic
manufacturing base. This strategy is expected to contribute to the long-term economic stability of the
country by creating jobs, boosting local industries, and conserving foreign currency reserves.
Furthermore, Southeast Bank has worked to identify and collaborate with sectors that are crucial for the
nation's self-reliance, such as RMG sector, agriculture, and pharmaceuticals, ensuring that these
industries are adequately supported in their growth
The International Division's responsibilities extend to ensuring smooth and efficient processing of trade
finance transactions, including Letters of Credit (LCs), and facilitating the inflow of foreign remittances.
This also involves maintaining close relationships with foreign correspondent banks to ensure the timely
settlement of cross-border transactions and mitigate any risks related to foreign exchange fluctuations.
Southeast Bank PLC. continues to strengthen its global relationships and commitment to operational
excellence. The Bank recently hosted a business meeting with ABC International Bank PLC, Bahrain, at
its Head Office to review their partnership and explore opportunities for mutual growth. Key
representatives, including Mr. Nuruddin Md. Sadeque Hossain, Managing Director of Southeast Bank
PLC, and Mr. Fawaz Hameed, Vice President of ABC International Bank, were present, along with
senior officials from both organizations. The Bank also organized a training program on “Import and
Export Related Transactions Reporting and Compliance” at its Training Institute on 19th November
2024. Fifty officials from AD branches and the International Division participated, gaining valuable
insights from resource persons of Bangladesh Bank. The program, inaugurated by the Managing
Director, emphasized error-free trade transaction reporting, adherence to Bangladesh Bank guidelines,
and skill development for sustained growth. Additionally, the International Division of Southeast Bank
PLC. achieved a significant milestone by receiving the ISO 9001:2015 Certification from Bureau
Veritas, a first for the international division of any Bangladeshi bank. This certification highlights the
Bank’s commitment to quality, compliance, and efficiency in international trade operations. With a
correspondent network spanning over 70 countries and 623 RMAs with around 300 foreign banks and
DFIs, Southeast Bank continues to facilitate global trade effectively, reinforcing its position as a leader
in international banking in Bangladesh.
Simultaneously Southeast Bank has been tasked with providing regular guidance and support to clients,
helping them navigate the challenges associated with the ongoing FX liquidity constraints. The division
has also been proactive in disseminating information regarding Bangladesh Bank's circulars, circular
letters, and any amendments or updates to the monetary policy. This enables clients to make informed
decisions regarding their financial activities and ensure their businesses are well-positioned for
sustainable growth despite the prevailing economic challenges. In line with Bangladesh Bank's
commitment to financial stability, Southeast Bank has also continued to monitor and evaluate the impact
of the regulatory measures on the overall economy, ensuring that the objectives of fostering growth and
stability are met without compromising the resilience of the foreign exchange market.
Offshore banking

Offshore banking in Bangladesh offers significant opportunities for economic growth and integration
into the global financial system. Offshore Banking Units (OBUs) enhance foreign exchange earnings by
attracting foreign capital and facilitating trade through financing in foreign currencies, thereby
bolstering the country's foreign exchange reserves. These units play a vital role in supporting export-
oriented industries by providing low-cost credit, which helps maintain Bangladesh's competitive edge in
sectors like ready-made garments (RMG) and textiles. Moreover, offshore banking facilitates foreign
direct investment (FDI) by simplifying financial transactions and providing secure banking services,
thus attracting international investors. By linking Bangladesh with global financial systems, offshore
banking offers exposure to advanced financial instruments and practices. Additionally, tax and
regulatory advantages associated with offshore banking create a favorable environment for both local
and foreign businesses, enabling them to thrive. The primary activities of OBUs in Bangladesh include
trade financing, where they facilitate letters of credit (LCs), export-import loans, and bill discounting for
international trade. They also extend foreign currency loans to domestic and international businesses,
providing a crucial financial lifeline. Wealth management services are another critical activity, offering
investment opportunities in international markets and foreign currency accounts. OBUs play a role in
remittance handling, ensuring the smooth inflow and outflow of remittances, which benefits the
Bangladeshi diaspora and the local economy. Furthermore, they engage in structured financing, offering
specialized solutions like project finance, syndication loans, and funding for infrastructure development.
Despite these opportunities, offshore banking in Bangladesh faces several challenges. Regulatory
constraints imposed by the Bangladesh Bank, while necessary, often limit the operational flexibility of
OBUs. The risk of money laundering is a significant concern, as the focus on cross-border transactions
can potentially make these units conduits for illicit financial flows. Many banks lack the technical
expertise required to operate sophisticated offshore banking services, resulting in operational
inefficiencies. The reliance on foreign currency loans exposes OBUs and their clients to exchange rate
volatility, posing financial risks. Additionally, compliance with international standards, such as anti-
money laundering (AML) and combating the financing of terrorism (CFT), requires substantial
investment in technology and training. Political and economic instability in Bangladesh further
complicates long-term offshore banking strategies. Moreover, market penetration remains limited, with
offshore banking services primarily catering to a niche market and having minimal outreach to small and
medium enterprises (SMEs).
To address these challenges and strengthen offshore banking, several strategies can be implemented.
Regulatory harmonization is crucial, as revising policies to balance oversight with operational freedom
will make Bangladesh a more attractive destination for offshore banking. Building capacity by investing
in human capital and technology can enhance the quality of services offered by OBUs. Developing
robust risk management mechanisms is essential to mitigate foreign exchange risks and address
concerns about money laundering. Market expansion efforts should focus on promoting offshore
banking services among SMEs and other untapped sectors. Infrastructure development, particularly in
digital banking, will support seamless international transactions and ensure compliance with global
standards. Strategic partnerships with international banks and financial institutions can provide access to
best practices and expand market reach. Finally, public awareness campaigns are necessary to educate
businesses and individuals about the benefits and services of offshore banking, thereby increasing
utilization.
Southeast Bank maintains a robust correspondent banking network, consisting of 645 Relationship
Management Applications (RMAs) with 310 banks globally. The Bank also holds 39 nostro accounts in
major foreign currencies, including 12 Asian Clearing Union (ACU) dollar accounts. All foreign trade
and FX transactions are facilitated through 22 Authorised Dealer (AD) branches, 1 Central Trade
Services Department (CTSD), and 2 Offshore Banking Units (OBUs). The Bank manages a substantial
confirmation line exceeding USD 1.3 billion, along with funded credit lines from more than 90 reputed
international banks.
Southeast Bank PLC. has achieved significant milestones in its Offshore Banking operations by securing
strategic partnerships with leading global banks. The Bank signed Master Trade Loan Agreements with
Mashreq Bank PSC, ABC International Bank PLC, Wells Fargo Bank N.A., and Commercial Bank of
Dubai PSC, enabling access to trade loans that will enhance its offshore banking capabilities. These
agreements were executed at the Bank’s Head Office, with Managing Director Mr. Nuruddin Md.
Sadeque Hossain and senior officials representing Southeast Bank and its partner institutions.
In addition to these agreements, Southeast Bank PLC. received the prestigious Global Treasury
Management (Commercial Payments) Special Recognition Award from Wells Fargo Bank N.A. This
award recognizes the Bank's excellence in managing commercial payments. Mr. Nuruddin Md. Sadeque
Hossain accepted the award on behalf of the Bank in the presence of senior officials from both
organizations. These achievements underscore Southeast Bank’s commitment to fostering global
financial partnerships, expanding its offshore banking operations, and maintaining excellence in
international trade and payment management. The new partnerships with globally recognized financial
institutions reflect Southeast Bank’s robust financial standing and commitment to delivering high-
quality services to its clients. These collaborations are designed to expand the Bank’s reach in
international markets, foster greater business opportunities, and enable clients to access a wider range of
financial products and services. The enhanced network of correspondent banks allows the Bank to offer
faster processing times, improved foreign exchange rates, and more flexible terms for trade-related
financing.

Furthermore, the Bank has made significant strides in improving its digital infrastructure, enabling more
efficient and transparent trade finance processes. By adopting cutting-edge technologies and integrating
automated systems into its operations, Southeast Bank has been able to offer enhanced customer
experiences and streamline the management of trade transactions. These technological advancements
ensure that clients can securely execute trade finance deals, track their transactions in real-time, and
receive timely updates on the status of their orders. Southeast Bank’s management recognizes the
importance of maintaining strong relationships with both domestic and international stakeholders. As the
economic environment remains fluid, the Bank continues to prioritize communication and collaboration
with its partner banks, providing them with the latest insights and updates regarding regulatory changes
and market trends. This ensures that both parties are aligned in their efforts to navigate the evolving
challenges of the global financial landscape.