Special Correspondent :
The central bank has issued several directives to the Farmers Bank authorities as part of its ‘conciliatory stance’ to save the ailing private commercial bank.
Bangladesh Bank (BB) came up with the directives at a meeting between the BB’s top brasses and the new management of the Farmers Bank held at its headquarters in the city on Wednesday.
The meeting also reviewed the overall financial condition of the cash-strapped bank that recently brought changes in its top management posts in line with the central bank’s directive.
“We have asked the bank authorities to take necessary steps to squash the banks liquidity crisis, restore depositors’ confidence and speed up loan recovery drive to help it revive from the current ailing situation,” BB spokesperson Subhankar Saha told The New Nation after the meeting.
He said, “Restoring depositor’s confidence is a must to get afforded access to liquid fund. It can help the bank recover and maintain its banking operation”.
Farmers Bank has been battling liquidity and solvency challenges sparked by corruption and financial irregularities committed by the bank’s immediate past top management led by Dr Mohiuddin Khan Alamgir.
Subhankar Saha said, BB has also asked the directors of the bank to deposit their additional funds in the bank to make up the bank’s liquidity shortfall in an emergency basis.
Farmers Bank recently appealed for Tk 300 crore emergency fund from the BB as it was facing an acute liquidity crisis.
“We have also asked the bank’s new management to improve governance, internal control and conduct the bank’s activities in compliance with the Banking Company Act and maintain prudential guidelines in disbursing loans to overcome the current crisis,” said Subhankar Saha.
On Monday, Dr Mohiuddin Khan Alamgir resigned from the post of Chairman of the Board of Directors of the bank.
The bank’s director and audit committee chairman Md Mahabubul Haque Chisty also resigned his post on the day in an emergency board meeting of the bank.
In the meeting, Mohammad Masud and Maruf Alam were elected chairman and vice-chairmen of the bank. At the same time, the bank’s executive committee, audit committee and risk management committee were reconstituted.
Subhankar Saha also said that the central bank is monitoring the activities of Farmers Bank closely to help it revive from the current ailing situation.
The bank authorities have been asked to follow the BB’s prescription to disburse new loans to regain depositors’ confidence.
The Farmers Bank had secured its licence along with eight other banks in June 2013.
