Three more banks likely to be approved

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Golam Mowla
Published : 23:00, Jan 07, 2019 | Updated : 23:15, Jan 07, 2019

The Bangladesh Bank is likely to give its green light to three more banks during its board meeting scheduled for Tuesday (Jan 8), says a central bank official.The Bangladesh Bank is likely to give its green light to three more banks during its board meeting scheduled for Tuesday (Jan 8), says a central bank official.

 A total of 58 government and private commercial banks and 34 non-bank financial institutions are operating currently.

“The central bank’s board gave its initial clearance for Bengal Commercial Bank earlier. If the matter comes up during Tuesday’s meeting, it’s likely to get the final green light,” Bangladesh Bank spokesperson Sirajul Islam told Bangla Tribune on Monday (Jan 7).

Jasim Uddin, the younger brother of Bengal Group Chairman Morshed Alam MP of the Awami League, is the proposed chairman of the bank. Jasim serves as the vice chairman of the business group.

“People’s Bank and Citizen may get the final approval the same day if it fulfill the conditions given by the central bank’s board during the last meeting,”, said Islam, an executive director of the central bank.

Law Minister Anisul Huq’s mother Jahanara Huq’s name has been proposed for the chairmanship of the Citizen Bank.

MA Quasem, an expatriate Awami League leader living in the US is the proposed chairman of the People’s Bank.

The Awami League government, which started its third straight term on Monday, has cleared 10 private banks in as many years in power.

The central bank decision comes even after bankers and economists have said time and again that there were too many banks in Banglades, which former finance minister AMA Muhith has also agreed on several occasions.

Former central bank deputy governor Khondoker Ibrahim Khaled echoed.

“The nine banks (out of the 10 cleared by Awami League administration) have issues and three of them are struggling. Farmers Bank can’t even return the funds kept by depositors. It would be highly inappropriate to clear new banks now,” he told Bangla Tribune on Monday.

The Awami League government has cleared 10 private banks in as many years in power.

A total of 58 government and private commercial banks and 34 non-bank financial institutions are operating currently.

Though many bankers believe the number of banks in the country was already too large, the government gave licence to nine more in 2012. Former finance minister Muhith had earlier admitted that the banks were cleared on political considerations.

Later, the government cleared the Border Guard Bangladesh’s Simanto Bank.

The banking sector has been in discussions for huge loan scams in past few years. The banks cleared in 2012 are also struggling with irregularities and liquidity crisis.

/zmi/up-hm/
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