I wrote this op-ed for HBL country head of BD. 

Robust Banking is Vital to Help Bangladesh-China Trade Reach New Heights

The banking sector plays a vital role in promoting economic ties between nations. This is particularly relevant for Bangladesh and China, as the two countries have seen significant growth in their economic relationship in recent years. With a strategic partnership in place and collaboration on various development projects, there is great potential for both nations to benefit from each other's strengths. However, to fully realize this potential, mutual cooperation is crucial, and the banking sector is an essential player in this partnership. By providing the necessary financial expertise and infrastructure to support bilateral trade and investment, the banking sector can be instrumental in taking Bangladesh-China economic ties to new heights.
The economic ties between Bangladesh and China have grown stronger over the years, and the bilateral trade volume has reached a new height in recent times. In the fiscal year 2020-2021, the bilateral trade between Bangladesh and China reached USD 25.52 billion, with Bangladesh's export to China accounting for USD 1.19 billion. In December 2022, China exported $1.96B and imported $80.5M from Bangladesh, resulting in a positive trade balance of $1.88B. While this is a significant achievement, there is still room for improvement in terms of the trade volume and the balance of trade between the two countries which can only be achieved with a robust banking system. 
Banks play a crucial role in providing the necessary financing and support for businesses to engage in cross-border trade and investment. They facilitate the exchange of goods and services by providing trade finance, risk management, and foreign exchange services. Banks also provide advisory services to businesses looking to expand their operations globally, guiding them through the legal and regulatory landscape of foreign markets. Financial institutions with global reach and expertise can provide the necessary financing and support for businesses to enter new markets and expand their operations. They can also offer valuable insight into the unique economic and regulatory landscape of the countries involved. Having a strong banking partner can also be advantageous in navigating the complexities of cross-border transactions. A global bank can provide a range of services, including trade finance, foreign exchange, and risk management, that can help businesses manage the risks associated with international trade. This can include mitigating risks related to currency fluctuations, credit, and political instability.
The China-Bangladesh Economic Corridor project, for example, can be a significant driver of economic growth and development for both countries. However, to fully realize the potential of the project, a strong and reliable banking sector is critical. A robust banking sector can provide the necessary financing, support, and risk mitigation tools for businesses to take advantage of the opportunities presented by the corridor.
As the economies of both Bangladesh and China continue to grow, the banking sector must adapt to the changing business environment. In recent years, the digital transformation of the banking sector has taken place globally, and Bangladesh and China are no exceptions. I believe that the digital transformation of the banking sector can greatly enhance the customer experience and improve the efficiency of banking operations. In this regard, several initiatives should be taken to digitalize our banking services in both Bangladesh and China including the adoption of mobile banking, internet banking, and SMS banking services to facilitate clients' banking needs.
I feel that the digital economy area is of great promise. China is a global leader in this field, and Bangladesh has made significant progress in recent years in adopting new technologies and building a robust digital infrastructure as I have mentioned earlier. By working together, we can further enhance our digital capabilities and create new opportunities for businesses and entrepreneurs. In particular, there is great potential for collaboration in the areas of e-commerce, digital payments, and fintech. Through partnerships with Chinese companies and institutions, we can further expand and improve these services, creating new solutions that meet the needs of businesses and consumers in both Bangladesh and China. By leveraging the expertise and resources of both countries, we can create a truly world-class digital ecosystem that drives growth and innovation across a range of sectors. Of course, realizing this potential will require continued investment and commitment from all stakeholders. Governments must continue to prioritize policies that support digital innovation and entrepreneurship, while businesses and entrepreneurs must be willing to take risks and embrace new ideas.
Now, as an international bank, I believe, we have strategically positioned ourselves to support the economic ties between Bangladesh and China. With branches in Beijing and Urumqi, we are proud to be the first foreign bank in China to be awarded the RMB settlement license, enabling RMB-denominated transactions for corporates and financial institutions. Additionally, we are also the first foreign commercial bank to offer RMB client accounts, providing a reliable and convenient banking solution for businesses engaged in cross-border trade. We also offer a dedicated China Desk with direct servicing by Chinese and Bangladeshi staff, providing businesses with personalized support for their specific needs. Moreover, RMB salary remittance services are provided to Chinese expats working in Bangladesh, making it easier for them to manage their finances while living and working abroad. These unique offerings highlight our commitment to facilitating the growth of bilateral trade and investment between Bangladesh and China.
Also, in addition to our commitment to digital transformation, we are also focused on environmental sustainability and social responsibility. As a subsidiary of the Aga Khan Fund for Economic Development (AKFED), we share their commitment to improving the quality of life for people in the communities we serve while safeguarding the environment which aligns with our own mission to support the growth and development of Bangladesh. Through AKFED’s investment, they are not only supporting the growth of the bank but also the wider economic development of Bangladesh. We have launched several initiatives to support sustainable development, including investments in renewable energy and efforts to promote environmental awareness and conservation in Bangladesh.
So, as we come to celebrate the 50th anniversary of Bangladesh-China diplomatic relations, we can look back with pride on the progress that has been made. But we must also look ahead, with a sense of optimism and determination, as we work together to build a brighter and more prosperous future for our two countries. We must seize the opportunities that lie ahead and embrace new technologies and ideas that will drive growth and prosperity for both our countries. This will require a willingness to take risks, innovate and collaborate across sectors and industries. But with determination and vision, we can build a truly world-class partnership that sets an example for others to follow. However, to fully capitalize on the potential benefits of this, it is essential to have a strong banking sector that can provide the necessary financing and support to businesses. And only financial institutions with global reach and expertise can play a vital role in facilitating cross-border transactions and investments, ultimately driving economic growth and prosperity for both countries. As an institution committed to supporting the growth of bilateral trade and investment between Bangladesh and China, HBL is best positioned to provide the necessary expertise and experience to help businesses navigate the complexities of international trade and achieve their growth aspirations.

Selim Barkat is the Country Manager, HBL-Bangladesh.