Bangladesh Bank has banned six Shariah-based banks under the control of the country’s controversial S Alam Group from opening import LCs along with restrictions on disbursement of loans.

On Monday (August 19) instructions were given in this regard from the central bank.

The banks are- Islami Bank Bangladesh, First Security Islami Bank, Social Islami Bank, Global Islam Islami Bank, Union Bank, and Bangladesh Commerce Bank.

According to the instructions, these banks will not be able to open any new import LCs until further instructions. They can only disburse agricultural loans and SME loans. Cannot disburse new loans.

Source: BB Bank.