Dhaka, Bangladesh (BBN)- Bangladesh Bank (BB) Governor Dr Atiur Rahman has asked the BASIC Bank board of directors to remain alert against any irregularities and bring discipline in the bank’s operation.
He also advised them to take stern actions against those who are found involved in any sort of irregularities.
“Restoring discipline in the bank is important for regaining confidence of its clients,” he said while speaking at an orientation programme of BASIC Bank’s new board of directors held at the ministry of finance (MoF) in the capital Dhaka on Thursday.
The central bank chief also asked the new management of the bank to stop illicit cash transactions with a view to strengthening its capacity further to effectively combat money laundering and terror financing.
Chairman of BASIC Bank Alauddin A Majid, its directors Begum Parag, Hasan Mahmood, Begum Raihana Aneesa Yusuf Ali, Md Mamun-Al-Rashid and Dr Mojib Uddin Ahmed and managing director Fazlus Sobhan were present at the programme.
The central bank earlier asked the top management of BASIC Bank for taking necessary measures to implement 11-point action plan including establishment of good governance through ensuring accountability and transparency for improving financial health of the scam-hit bank.
The BASIC Bank management has also been asked to re-establish credit discipline and expedite the functions of default loan recovery taskforce.
The BB also asked the BASIC Bank to identify and take action against officials, who were cronies of the former chairman and MD.
Earlier on May 25 last, the central bank fired BASIC Bank MD Kazi Faqurul Islam on the charges of negligence of duty and irregularities apart from the failure to protect the depositors’ interests.
The central bank earlier found different types of irregularities by the BASIC Bank in providing loans, which include non-verification of customer’s creditworthiness, absence of ‘know your customer (KYC)’ procedures, and extending loans to defaulters.
The BB investigations detected financial irregularities involving around BDT 45 billion of loans in the three branches located at Gulshan, Dilkusha and Shantinagar in Dhaka between 2009 and 2013.
BBN/SSR/AD-29Aug14-2:18 pm (BST)
