Remittance flow will not be disrupted if expatriates can continue working in Middle East: BAB chairman

Remittance inflows to Bangladesh are unlikely to be disrupted if expatriate workers in the Middle East can continue their jobs despite the ongoing war involving Iran, Israel, and the United States, said Abdul Hai Sarker, chairman of the Bangladesh Association of Banks (BAB).

"If expatriates in the Middle East can continue working, the remittance flow will remain stable," he said while speaking to journalists today (9 March) after a meeting with Bangladesh Bank Governor Md Mostaqur Rahman.

"If work stops, then naturally they will not be able to work there, and a negative impact will be inevitable. At this moment, it is difficult to say. It will depend on how long the war continues."

Sarker also emphasised the importance of regular communication between private banks and the central bank.

"If there is regular interaction with the Bangladesh Bank, policies can be adopted properly. But if a gap is created with the central bank, it will not be possible to apply the policies properly," he said.

He added that private banks have been asked to help safeguard weaker banks.

"The governor appears to be quite positive about the mindset of private banks," he said.

Responding to a question from journalists about the possible impact of implementing the International Financial Reporting Standard (IFRS-9), which requires banks to maintain forward-looking provisions, Sarker said, "A circular has only just been issued, and it will come into effect from 2028. We are working on how the required provisions can be maintained. It is difficult to say anything right now," he said.

"This policy is followed internationally, so it is nothing new. However, the issue is to what extent it can be implemented in the context of Bangladesh, because our infrastructure is not the same as that of other countries."