Central bank afraid of politically approved banks!

DHAKA: The Bangladesh Bank (BB) authorities will not take strict action against the authorities of newly approved seven banks in spite of having their serious mistakes and negligence in filling up final proposal letters to the central bank accurately.The central bank sources said serious mistake and lack of required information was found in the final proposal letters which were sent to the Bangladesh Bank (BB) by the entrepreneurs of seven politically approved new commercial banks.
But without taking any action, the BB authorities only issued letters asking the bank authorities to amend those proposals after eight months of the approval was issued.
A high official of the central bank wishing anonymity said, “This is a political matter. We have thought of taking no strict action against the entrepreneurs as they are politically influenced.”
The source also said, “We just issued letters to the entrepreneurs of the banks asking to rectify their proposal letters soon.”
BB sources said the central bank also found serious faults and contradictory information in the proposal letters ignoring the directions of the BB.
The BB has already sent letters to five bank authorities and it would issue letters to the rest of the two banks soon to rectify the proposals finally, the source added.
The seven new private banks–Union Bank Limited, Modhumati Bank Limited, Farmers’ Bank Limited, NRB Bank, Meghna Bank Limited, South Bangla Agriculture and Commerce Bank and Midland Bank Limited—were approved by the BB in April, mostly sponsored by political bigwigs.
The sources said that the approved banks failed to send proposals to the BB accurately and in some cases they could not mention required information.
(Source: banglanews24.com)

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