Kazi Zahidul Hasan :
The central bank is mulling options to rescue the ailing Farmers Bank, which is witnessing a big plunge through rampant corruption and mismanagement.
“We’re considering various measures to rescue the falling bank. The options are appointing an administrator, liquidating bank, taking it over and merging to other problem banks,” a senior Bangladesh Bank (BB) official told The New Nation on Thursday, asking not to be named.
He said, “Such measures would help restore trust of the depositors who are now making rush for withdrawing money from their accounts held with the bank.”
The BB official further said that the best option for the central bank is to take over the management and appoint a BB executive director as the bank’s administrator what it did for Oriental Bank.
The central bank dissolved the board of directors of the Oriental Bank in 2006
after detecting massive corruption, and converted it to ICB Islamic Bank to safeguard the interest of the depositors. It also took over the management and appointed an administration to the bank following Bank Company Act.
“We’re preparing a proposal in this regard that would be sent to the Ministry of Finance for its acknowledgement,” said the BB official, adding, “The proposal would also attach the present situation of the debt-ridden Farmers Bank”.
He said, “A final decision would be made after the ministry’s signal over the proposal”.
“The condition of Farmers Bank is deteriorating alarmingly despite restructuring its board of directors. If the central bank does not intervene immediately it might have a negative impact on the entire banking sector,” he warned.
The central on Tuesday removed the trouble-hit bank’s Managing Director AKM Shamim for violating the banking laws and hampering the interests of the depositors.
Prior to this, Mohiuddin Khan Alamgir, Chairman and Md Mahabubul Haque Chisty, Chairman of the audit committee were forced to resign from the Farmers Bank’s board of directors.
The restructure process has been made in line with a BB directive.
When asked, BB spokesperson Suvankar Saha told The New Nation that the central bank was taking necessary steps to rescue the ailing bank as well as protect the interest of depositors.
The central bank is mulling options to rescue the ailing Farmers Bank, which is witnessing a big plunge through rampant corruption and mismanagement.
“We’re considering various measures to rescue the falling bank. The options are appointing an administrator, liquidating bank, taking it over and merging to other problem banks,” a senior Bangladesh Bank (BB) official told The New Nation on Thursday, asking not to be named.
He said, “Such measures would help restore trust of the depositors who are now making rush for withdrawing money from their accounts held with the bank.”
The BB official further said that the best option for the central bank is to take over the management and appoint a BB executive director as the bank’s administrator what it did for Oriental Bank.
The central bank dissolved the board of directors of the Oriental Bank in 2006
after detecting massive corruption, and converted it to ICB Islamic Bank to safeguard the interest of the depositors. It also took over the management and appointed an administration to the bank following Bank Company Act.
“We’re preparing a proposal in this regard that would be sent to the Ministry of Finance for its acknowledgement,” said the BB official, adding, “The proposal would also attach the present situation of the debt-ridden Farmers Bank”.
He said, “A final decision would be made after the ministry’s signal over the proposal”.
“The condition of Farmers Bank is deteriorating alarmingly despite restructuring its board of directors. If the central bank does not intervene immediately it might have a negative impact on the entire banking sector,” he warned.
The central on Tuesday removed the trouble-hit bank’s Managing Director AKM Shamim for violating the banking laws and hampering the interests of the depositors.
Prior to this, Mohiuddin Khan Alamgir, Chairman and Md Mahabubul Haque Chisty, Chairman of the audit committee were forced to resign from the Farmers Bank’s board of directors.
The restructure process has been made in line with a BB directive.
When asked, BB spokesperson Suvankar Saha told The New Nation that the central bank was taking necessary steps to rescue the ailing bank as well as protect the interest of depositors.
