Off-shore Banking Unit

Off-shore Banking Unit

Uttara Bank Limited commenced its Off-shore Banking Unit (OBU) operation on July 6, 2015. The OBU broadens our trade finance for service of our corporate clients.

The OBU of our bank is free to accept deposit, borrow from non-resident persons / foreign institutions including Bangladeshi nationals working abroad and from industries in EPZ owned by foreign persons or by Bangladeshi nationals ordinarily resident abroad. It is also free to make loans to non-resident persons / foreign institutions including industries in EPZ owned by foreign persons or by Bangladeshi nationals ordinarily resident abroad. For borrowing abroad, our OBU also facilitates Term Loan in foreign currency to industrial units outside EPZ, industries in EPZ owned by foreign and Bangladeshi entrepreneurs resident in Bangladesh jointly and the industries in EPZ owned by Bangladeshi entrepreneurs resident in Bangladesh.

Key features of Off-shore Banking Unit:

• International banking involving non-resident’s foreign currency denominated assets & liabilities
• No statutory capital and reserve or liquidity for OBU
• All transactions are done in FC
• Entry of foreign Banks or financial institution to conduct offshore banking
• Taxes on internal income & other forms of levies are practically nil
• Payment of interest is done without deduction of tax
• Separate Accounting / Reporting / Counter

Advantages of Off-shore Banking Unit:

• No exchange risk
• Easy access to depositors abroad
• Lower overheads & less government intervention
• Low or no taxation
• Re-distribution of world finance from the developed to the developing countries
• Receipt and utilization of fund at lower rate
• Access to politically & economically stable jurisdiction

Clients of Off-shore Banking Unit:

• Bangladeshi national working abroad
• Non-resident (individual & institutions)
• Banks in Bangladesh (correspondent relation)
• Type – A unit (100% foreign owned) in EPZ
• Type – B, Type – C in EPZ & industrial units outside EPZ (for term loan in FC)
• AD Branches for UPAS L/C settlement (for bill discounting) and Export Bill Discounting.

Area of operation:

• Deposit collection
• FC investment
• Fund collection / borrowing
• UPAS L/C settlement and Export Bill Discounting
• FC transaction for own clients