Dhaka, Bangladesh (BBN) – The central bank of Bangladesh is set to ask the commercial banks to for taking necessary measures to settle overdue of inland bill purchase (IBP) immediately, officials said.
The instruction is likely to be made at a regular meeting of bankers to be held at the central bank in the capital Dhaka on Sunday with Bangladesh Bank (BB) Governor Atiur Rahman in the chair.
“We’ll discuss immediate settlement of the issue of IBP among the banks to ensure stability in the country’s banking sector,” a senior official told BBN in Dhaka.
The BB’s latest move has been taken against the backdrop of a substantial amount of bills remaining outstanding in the banking sector because of large-scale irregularities in purchasing, and providing acceptance to, bills against local LC (letter of credit)-denominated foreign currency by different bank branches in the recent months.
The BB will ask the banks to take necessary measures to settle the IBP without any delay, the central banker said, adding that the banks, which gave acceptance to the bills, would have to settle payments with their counterparts.
The stalemate arose as the Hall-Mark Group and some other business entities allegedly swindled minimum BDT 35.47 billion from the Sonali Bank and in the fund embezzlement, also involving 57 branches of 27 commercial banks, used the accommodation bill against back-to-back letters of credit (LCs) by ignoring banking rules and regulations, according to the central bankers.
BBN/SSR/AD-25Jan13-2:27 pm (BST)
