Bangladesh Bank (BB) has appointed observers for Islami Bank Bangladesh Limited and First Security Islami Bank.
The central bank took this decision on Monday after reports of loans being approved provided without collateral and required documents.
In this context, the central bank decided to appoint observers in both banks. Both banks are owned by a Chittagong-based S. Alam Group.
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Spokesperson of BB Mazbaul Haque told UNB that as per the central bank’s policy, several instructions have been given to the two banks. Observers will monitor whether these instructions are being followed or not.
Abul Kalam, Director of Forex Reserve and Treasury Management Department, has been made the observer at Islami Bank. And in First Security Islami Bank, the director of the payment service department, Motasim Billah, has been appointed as the observer.
Earlier, the BB had appointed observers to Islami Bank in December 2010 due to fear of loan irregularities and militant financing.
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After this, an officer of the rank of Director (then General Manager) of the central bank started attending various meetings of the Bank. In 2017, the ownership and management of the bank was transferred to a Chittagong-based S. Alam group while Bangladesh Bank was under observation.
Then in March 2020, the observer was removed by the central bank. Then-Governor of the central bank Fazle Kabir approved the removal of the observer from the bank.
Now again the question has arisen of huge loan irregularities, particularly in favour of the controlling group’s other units.
People related to the banking sector believe that the recent loan irregularities of Islami Bank are even worse than the irregularities of Hallmark, Basic, and Farmers Bank of Sonali Bank.
Source: United News of Bangladesh