Dhaka, Bangladesh (BBN) – The central bank of Bangladesh has approved three new commercial banks sponsored by non-resident Bangladeshis (NRBs) on condition that those would contribute to boosting inflow of foreign exchange, officials said.
The decision came at a meeting of the board of directors of Bangladesh Bank (BB), the country’s central bank, held at the central bank in the capital Dhaka on Wednesday, with BB Governor Atiur Rahman in the chair.
The board meeting, however, has been adjourned until at 1:30 pm on April 8 (Sunday) for taking final decision on approving other private commercial banks (PCBs) sponsored by local entrepreneurs.
The three approved NBR banks are NRB Commercial Bank Limited, NRB Bank Limited and NRB Bank Limited.
“The board approved three NRB banks imposing conditions including contribution to international trade and inward remittance,” Deputy Governor of the BB SK Sur Chowdhury told reporters after the meeting.
He also said the approved NRB banks will have to play a vital role in selling of foreign currency treasury bonds abroad.
Farasat Ali and Nizam Chowdhury, now living in the United States, have applied for the NRB Commercial Bank and NRB Bank respectively, as chairmen.
Another applicant, Iqbal Ahmed, who is residing in the United Kingdom, has applied for a bank named NRB Bank as chairman.
“The central bank will ask the entrepreneurs to change the name of an NRB bank since two applications were approved with the same name. But the name of sponsors will remain unchanged,” Mr. Chowdhury said while replying to a query relating to the same name of two NRB banks.
The new NRB bank will be established with a paid-up capital of not less than BDT 4.0 billion. Shareholding of the NRB bank will be 50 percent from the NRB sponsors and the rest 50 percent will be collected from public offers.
“The authorities concerned of the approved NRB banks would have to deposit their paid-up capital money with the local commercial banks in foreign currency,” another BB official said, adding that the central bank will issue license to the NRB banks only after receiving their money against the paid-up capital.
The central bank of Bangladesh earlier decided in principle to grant licensee to a new banking company to be set up by NRBs in pursuant to section 31 of the Bank Company Act, 1991 after considering the need and overall strategy congenial to effective monetary and financial sector policy for the country.
The BB sought amplifications from interested entrepreneurs for setting up NRB banks on March 7 last year. The last date of submission of applications was May 31, 2011.
After scrutiny by three committees of the central bank, three of the five applications were listed for proposed NRB banks.
BBN/SSR/AD-04Apr12-8:30 pm (BST)
