Bangladesh Bank (BB) on Monday appointed observers to Islami Bank Bangladesh Ltd (IBBL) and First Security Islami Bank Limited (FSIBL) amid reports of irregularities in those two banks.
The observers will attend the board meetings of the banks and observe their decisions before updating the central bank on a regular basis, said central bank spokesperson Md Mezbaul Hoque.
He also said that the central bank put forward some instructions to the banks for averting any trouble while the observers will follow whether the banks are complying with the directives.
An official said the Bangladesh Bank’s Forex Reserve & Treasury Management Department Director Abul Kalam will oversee the IBBL and Payment Systems Department Director Motasim Billah FSIBL.
The two Shariah-based banks have reportedly disbursed large amounts of loans bypassing the banking rules and regulations in recent times.
Chittagong-based business conglomerate S Alam Group has a major stake in the two banks.
The central bank usually deputes its high officials as observers at a bank when it considers the bank’s financial health is deteriorating due to any scam.
With the latest move, the Bangladesh Bank has so far appointed observers at nine banks to restore corporate governance in the financial sector.
Earlier on December 4, the High Court directed the authorities concerned to probe the alleged loan scams at the IBBL, Social Islami Bank Ltd, and FSIBL.
The Anti-Corruption Commission (ACC), Bangladesh Bank, the Bangladesh…
