Banking on holidays

Businessmen in Bangladesh, particularly exporters, have long been complaining about banks' weekend holidays on Fridays and Saturdays arguing that such holidays keep their business cut off for three days a week from their trade partners in other countries, where the weekend holidays are set for Saturdays and Sundays. They advocate rescheduling the weekend holidays for banks in keeping with the practice in other countries to facilitate their foreign trade on at least an extra weekday.

When there was a one-day weekend holiday in Bangladesh, the country had it on Sunday until 1984 when military dictator HM Ershad shifted it to Friday supposedly to cash in on the religious sentiment of the country's majority Muslim population. Twenty-one year later, the then BNP government introduced the two weekly days off adding Saturdays to the existing Fridays, arguing that the move was aimed at conserving energy amid the growing oil prices in world markets.

Given the situation, it will be difficult for any government to shift the weekly holiday from Friday to any other day. Then what might be the solution to the problem businessmen are facing. Bangladesh can consider an alternative -- keeping the export-import-related wings and a few branches of banks open on statutory holidays too, at least for several hours every day. In fact, amid the increasing globalisation and growing need for seamless financial services, discussions have emerged about keeping open some branches and the export-import facilitation wing of banks on all weekdays.

Operation of bank branches on holidays will reduce delays in cross-border transactions, ensuring smoother trade operations and increasing Bangladesh's competitiveness in global markets. It will also provide urgent financial assistance to clients who cannot visit banks on weekdays due to their work schedules. This flexibility will be particularly beneficial for small business owners, self-employed professionals, and expatriates sending remittances. It will allow quicker processing of remittances, enabling recipients to access funds without unnecessary delays.

Besides all these benefits, the arrangement will also invite some challenges. It will lead to additional costs in terms of employee salaries, utilities, security, and maintenance. It might expose banks to higher security risks, as reduced staffing may make branches more vulnerable to fraud, cyber threats, or physical security concerns. Also, arranging cash transportation and treasury operations during weekends could pose logistical difficulties.

The encouraging thing, however, is that it will be nothing new for Bangladesh; China has already introduced it. The enviable development the Asian economic giant has so far attained was not a piece of cake; the country had to introduce many new things to reach where it is now. Most of the national banks in China keep open some of their branches, particularly in major cities, on all statutory holidays through rational branch operation, meaning a few branches operate on particular holidays and a few others on other holidays. Customers are notified which branches will remain operative on which days.

If the government, regulatory authorities and banks are serious about the matter, these challenges will not be a deterrent. They could take a balanced approach to both the advantages and challenges of banking on holidays. Instead of opening all branches, a few key branches in major cities could operate on holidays to cater to urgent customer needs. Banks could introduce a rational operation system e.g. a few branches will operate on particular holidays and a few others on other holidays to ensure that employees of particular branches do not face excessive workloads. The banking sector regulators could establish guidelines to ensure that banking on holidays benefits both financial institutions and customers.

By adopting best practices and leveraging technology, the banking sector in Bangladesh can evolve to meet the growing needs of businesses and individuals.

rahmansrdk@gmail.com