Offshore Banking (OB) has undergone a long developmental transition in Bangladesh due to the global and internal business dynamics. Offshore Banking operations in the country was first allowed by Bangladesh Bank in 1985 with the intention of creating financing opportunities through specialized banking services offered to enterprises at the Export Processing Zones (EPZ). Targeted to drive growth in the foreign currency inflows, offshore banking operations involve providing banking services to facilitate investments and promotion of international trade. Transactions in this space are executed in foreign currencies with banks being required to obtain a separate license to provide offshore banking services.
Citibank, N.A., Bangladesh obtained its first Offshore Banking Unit (OBU) license in 2003. There are two Offshore Banking booths located in Dhaka & Chattogram to provide on-the-ground services to our clients.
CUSTOMERS OF OFFSHORE BANKING
Citi with its global footprint caters to a range of clients across the EPZ and offers an array of Offshore Banking services facilitating foreign currency denominated assets and liabilities. Below are the entities eligible for operating in Offshore Banking Unit of Citi in Bangladesh:
- Fully foreign owned (Type A) enterprises of EPZ
- Joint venture (Type B) enterprises of EPZ
- Fully local owned (Type C) enterprises of EPZ
- Non-Resident Foreign Companies
PRODUCTS AND SERVICES
The products and services as required by EPZ clients are broadly divided into Import, Export, Short Term Financing, Foreign Exchange conversions, Bill Discounting, and Payment services. Citi Bangladesh provides the following offshore banking services and products to our clients:
Trade Services:
- Import Letter of Credit
- Import under Documentary Collection (DA/DP)
- Discounting of Import & Export Bills/UPAS (Usance Paid at Sight)
- Import Loan
- Open Account ( Export)
- Advance Payment ( Export)
Deposit Services:
- Current Deposits
- Term Deposits
- Savings Deposits
Domestic Payment Services:
- Checks
- Real Time Gross Settlement (RTGS)
Loan Products:
Treasury Product:
- Spot Foreign Exchange
- Forward Foreign Exchange