Dhaka, Bangladesh (BBN) – The central bank of Bangladesh will invite fresh applications for setting up of new private commercial banks (PCBs) within the next ten working days following its board of directors approved a proposal on issuing licences for new PCBs on Wednesday.

“We’ll invite fresh applications from interested sponsors, through advertisements in the media, to set up new banks,” an executive director of the Bangladesh Bank (BB) said, adding that the Board has decided to allow some new banks, considering the country’s overall economic activities, along with its population growth.

The Board approved draft guidelines with some amendments. Some new clauses have been added to the previous ones.
On August 24 last, the Board kept in abeyance a proposal to issue licences for new PCBs.

The meeting did not specify the number of banks to be approved during the process.

Under the amendments, no tax and bank loan defaulter will be allowed as sponsor directors of the new PCB and the amount of non-refundable fee at the time of filing applications has been increased to BDT 1.0 million from BDT 0.8 million earlier.

On September 5 last, the central bank published the draft guidelines to set up new banks, imposing a restriction on the number of directors in their proposed board to 13.

On June 29 last, Finance Minister AMA Muhith told Parliament that the government would invite applications from the sponsors willing to set up new banks and life insurance companies.

Currently, a total of 47 commercial banks are in operation in Bangladesh.

BBN/SSR/AD-15Sept11-10:56 am (BST)