Economic Reporter :
Bangladesh Bank (BB) on Wednesday asked the new board of directors of the Farmers Bank Limited (FBL) to keep some money in the bank to face the existing liquidity crisis and bring back customers’ confidence.
“We have directed the members of the FBL board to keep some money from their own fund for overcoming the current liquidity crisis,” BB Executive Director Subhankar Saha said.
After taking charge of the new board, Chairman Mohammad Masud and members met with the BB governor and high officials at the central bank headquarters in the city.
Subhankar Shah said BB also asked the FBL to take necessary steps for improving all financial indicators of the bank.
He said the board members, too, expressed their strong stance to run the bank as per the BB’s directions.
Earlier, former home minister Dr Mohiuddin Khan Alamgir resigned as chairman of the FBL board of directors and executive committee in response to the central bank’s cautions against the liquidity crisis the FBL has been facing for quite some time.
Another member of the board of directors Mahabubul Haque Chisti also resigned as chairman of the FBL audit committee.
According to a press release, issued by BB earlier, it was observed that the crisis was deepening, as a number of depositors were trying to withdraw money from the bank.
As the matter came to the notice of Bangladesh Bank, necessary regulatory steps were taken, the release added.
It also said that steps were taken against FBL’s managing director for failing to fulfill his responsibilities and violating the guidelines of Bangladesh Bank.
The central bank also sent a letter to FBL, asking why Managing Director AKM Shameem of the private bank would not be removed within seven days.
Talking to NN, a BB high official said BB sent a letter to FBL for giving answer within seven days. The seven days will end on next Sunday, he added.
Bangladesh Bank (BB) on Wednesday asked the new board of directors of the Farmers Bank Limited (FBL) to keep some money in the bank to face the existing liquidity crisis and bring back customers’ confidence.
“We have directed the members of the FBL board to keep some money from their own fund for overcoming the current liquidity crisis,” BB Executive Director Subhankar Saha said.
After taking charge of the new board, Chairman Mohammad Masud and members met with the BB governor and high officials at the central bank headquarters in the city.
Subhankar Shah said BB also asked the FBL to take necessary steps for improving all financial indicators of the bank.
He said the board members, too, expressed their strong stance to run the bank as per the BB’s directions.
Earlier, former home minister Dr Mohiuddin Khan Alamgir resigned as chairman of the FBL board of directors and executive committee in response to the central bank’s cautions against the liquidity crisis the FBL has been facing for quite some time.
Another member of the board of directors Mahabubul Haque Chisti also resigned as chairman of the FBL audit committee.
According to a press release, issued by BB earlier, it was observed that the crisis was deepening, as a number of depositors were trying to withdraw money from the bank.
As the matter came to the notice of Bangladesh Bank, necessary regulatory steps were taken, the release added.
It also said that steps were taken against FBL’s managing director for failing to fulfill his responsibilities and violating the guidelines of Bangladesh Bank.
The central bank also sent a letter to FBL, asking why Managing Director AKM Shameem of the private bank would not be removed within seven days.
Talking to NN, a BB high official said BB sent a letter to FBL for giving answer within seven days. The seven days will end on next Sunday, he added.
