BB to probe banks named in share market scam report

Last updated: April 10, 2011

Dhaka, Bangladesh (BBN)- The central bank of Bangladesh will launch an investigation into the banks named in the probe report on share market crash which was submitted to the finance minister on April 7 last, a top Bangladesh Bank (BB) official said on Sunday

"We'll start our own investigation against the banks after receiving the probe report," BB Senior Deputy Governor Nazrul Huda said while replying to a query.

He also said actions will be taken against the banks in line with the BB's investigation report.

The probe report said some banks pocketed immense profit violating the rules and regulations. Some of the banks were also involved in fuelling the stock prices in 2010.

The report has recommended that the BB take action against the financial institutions in question.

The BB had identified that at least 16 commercial banks particularly private commercial banks (PCBs) crossed their exposure limit in the capital market investment last year.

"Currently, at least two PCBs have over 10 per cent investment of their total liabilities in the capital market," a central bank official added.

BBN/SSR/AD11Apr11-12:30 am (BST) 

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