Weaker banks will get more loans against Bangladesh Bank’s guarantee. The governor told 17 banks with surplus liquidity for assistance in this regard. Ahsan H. Mansoor. Apart from this, he said that no bank will be able to pay dividends in the future due to capital and provision deficit. He said this in a meeting with the managing directors of various banks on Monday.
The meeting warned of administrative measures if any bank does not settle the liability of LC on time. On the other hand, the banks have asked for the permission to file a case with the removal of the existing upper limit of interest rate on credit cards.
Governor Dr. in the meeting room of Bangladesh Bank. The meeting was held under the chairmanship of Ahsan H. Mansoor. The meeting was attended by the Deputy Governor, Executive Director, Director and various level officials of the Central Bank. Among the banks, the managing directors of state-owned Sonali, Janata, Agrani and Rupali banks were called in the meeting. MDs of BRAC, Mutual Trust, City, Dhaka, Dutch-Bangla, Eastern, Pubali, Prime, NCC, Mercantile, Premier, Jamuna and Southeast Bank were present among the private banks.
It is learned that the governor said to the MDs in the meeting that the good banks should help the weak banks to normalize the market situation. It can be seen that the weak bank has turned around. The governor directed the relevant department of the central bank that no bank should be able to pay dividends with capital and provision deficit in the future.
It is said by the MDs that if a bank listed in the capital market cannot pay dividends, it is once considered as ‘Z category’. As a result, we need to think about it a little more. And the current rule calls for a lawsuit after two years of any loan foreclosure. From now on, opportunity for litigation is sought immediately after depredation. Apart from this, the credit card interest rate has been capped at 20 percent from October 2020. Even though the 9/6 system on interest rates has been lifted, this limit still exists on credit cards. It is requested to remove this limit. The governor requested to think about it.
The bank said in the meeting that the dollar market is very stable. Still some banks are not paying the LC dues on time. The governor said the dollar market is stable. It will become more stable by next January. At such times, no bank should buy extra dollars in the hope of extra profit. Again, no one should buy dollars in cross currency. Apart from this, he warned about taking administrative action if any bank is late in paying the debt.
The MDs requested the withdrawal of the directive to make diploma pass mandatory for the promotion of bank officers and employees during the previous governor’s time. But they said 5 marks can be kept for promotion to encourage diploma. If necessary, a committee consisting of representatives of Bangladesh Bank and commercial banks can be formed.
Good banks were not willing to lend to weak banks despite central bank guarantees. That is why the governor held a meeting with 10 banks on September 25. Requesting the money to be given there, he said that if for some reason these banks are unable to return the money within the stipulated time, the central bank will return it within three days. Then against Bangladesh Bank’s guarantee, the weak banks received money. But the amount received is less than the demand. Basically, the parties in charge of the management of the bank took out a huge amount of money in the name of loans, as a special favor of the previous government. That money is not coming back. So far, the central bank illegally allowed these banks to maintain a current account deficit, but the new governor has stopped it. Apart from this, the board of directors of the banks has been dissolved and restructured.
Among the banks directly under S Alam’s control were Islami Bank Bangladesh, Social Islami, First Security Islami, Union, Global Islami, Bangladesh Commerce and National Bank. RS Alam’s brother Abdus Samad Labu was the Chairman of Al-Arafah Islami Bank. UCB was under the control of their cousin former land minister Saifuzzaman Chowdhury Javed family. Apart from this, IFIC Salman F Rahman and Exim Bank were under the control of Nazrul Islam Majumdar
