Bangladesh Bank Headquarters
Dhaka, Bangladesh (BBN) - The central bank of Bangladesh is set to place the proposals for approving three more banks before its board of directors’ meeting on Monday.
The Bangladesh Bank (BB) has taken the latest move following pressure from the government high-ups to issue licences for setting up the new banks before the upcoming national election, according to sources.
The proposed banks are Bengal Bank Limited, Peoples Bank Limited and Citizen Bank Limited.
Talking to the BBN, a BB senior official said the preparations have almost been completed to place the proposals for establishing three new private commercial banks (PCBs) before the board for consideration.
He also said it will depend on high-level decision whether the proposals will be discussed at the meeting or not.
A ruling party lawmaker and owner of Bengal Group of Industries has moved for getting permission for Bengal Bank, while a Chittagong-based businessman M A Kashem has patronised Peoples Bank.
Besides, a senior cabinet member has backed for setting up Citizen Bank, the sources added.
The issue of giving nod to new banks surfaced after a disclosure of Finance Minister A M A Muhith at parliament on Wednesday that the government is in the process of giving approval to four new PCBs.
The Sources also said Ministry of Finance advised the central bank in September to issue licences for setting up the new banks.
On August 28, BB board gave clearance to issue licence to proposed Community Bank Limited, owned by Bangladesh Policy Welfare Trust, after completing all rules and regulations properly.
“We’ve already issued letter of intent (LoI) to Community Bank Limited, asking to comply with the requirements along with the existing rules and regulations before getting licence,” another BB official told the BBN in Dhaka.
He also said business plan of the proposed bank may be placed before the board on Monday.
The central bank earlier gave negative opinions regarding the proposals for allowing new banks.
The BB in its opinions mentioned that the deteriorating financial health of many banks, especially the newly-launched nine banks, does not allow operating any new bank.
After Awami League formed the government in 2009, nine banks were given permission on ‘political consideration’ despite opposition from different quarters.
Besides, Shimanto Bank, owned by BGB Welfare Trust, was given licence in 2016.
Currently, there are 58 banks in Bangladesh. Of them, 40 are local private banks, nine are foreign and nine are state-owned.
BBN/SSR/AD