bdnews24.com :
Bangladesh Bank has decided to provisionally approve two new financial institutions.
The move comes hard on the heels of the Awami League being re-elected to power in January.
The institutions are CAPM Venture Capital and Finance Ltd, promoted by Mahmud Hussain, and Meridian Finance and Investment Ltd by prime promoter Kazi Aminul Islam.
The central bank’s Board of Directors decided on the move on Wednesday, said Deputy Governor SK Sur Chowdhury.
Currently, as many as 31 financial institutions are operating in Bangladesh.
The ruling Awami League in its previous 1996-2001 term had approved a total of nine banks and a non-banking financial institution. Allegations have it that the government approved these banks purely on political considerations.
Sur Chowdhury said that the paid-up capital of the two new financial institutions must be at least Tk 1 billion each to minimise risks. The sponsors would have to pay all taxes for the fund. He said the sponsors would have to fulfil 30 more requirements. “It’s the primary stage of the approval. Now the sponsors will have to fulfil the other requirements.
“After they submit their business outlays and plans, we’ll scrutinise those. And then we’ll give the final approval,” the deputy governor added.
