Dhaka, Bangladesh (BBN)- The central bank of Bangladesh  has imposed restriction on purchase or lease of fixed assets including land by the commercial banks to protect public interest.

Under the new provisions, the banks will have to take prior approval from the Bangladesh Bank (BB) to buy or lease such assets, officials said.

“We’ve imposed the restriction on the basis of our report that some banks are now involved in such transactions,” a BB senior official said.

The central bank issued a circular in this connection Monday and asked the managing directors of all commercial banks to comply with such instructions.

“The new instruction will be applicable in the case of agreements now under process,” the BB said in its circular.

The BB found that some banks are involved in deals in violation of the existing Bank Companies Act.

BBN/SS/SI/AD-26January10-1:01 pm (BST)