Dhaka, Bangladesh (BBN) – The central bank of Bangladesh has issued no-objection certificates (NOCs) to five proposed banks for starting their business, officials said on Monday.
The Bangladesh Bank (BB), the country’s central bank, has asked them to get themselves incorporated as companies with the Registrar of Joint Stock Companies and Firms (RJSCF).
“The central bank has issued the NOC in favour of their respective memorandum and article of association, which were submitted to the central bank earlier,” a BB senior official told BBN in Dhaka.
Earlier on February 5 last, the central bank gave the final clearance for issuance of licences to five new banks to start business, upon their due compliance with all the preconditions.
The banks are NRB Commercial Bank Limited, Union Bank Limited, South Bangla Agriculture and Commerce Bank Limited, Meghna Bank Limited and the NRB Bank Limited.
The BB official also said the central bank would transfer the money which was earlier deposited with banks under lien, to their company accounts for maintenance of their paid-up capital.
Under the existing rules, the paid-up capital of a new bank will not be less than BDT 4.0 billion.The sponsors of the non-resident Bangladesh Bank (NRB) will deposit their paid-up capital in foreign currency.
The proposed banks will apply again to the BB seeking licences for starting operation after getting registrations as companies from the RJSCF.
“The BB will issue licences for setting up bank branches to collect deposits from depositors and provide loans to the borrowers following pre-licence inspection. The inspection will cover staff regulation, credit policy, treasury management, internal control and compliance,” the central banker noted.
Besides, business plan of another proposed bank — Midland Bank Limited — will be placed at the next meeting of the BB board of directors for approval.
The central bank is now working on scrutiny of different documents including loan status of the sponsors of Farmers Bank Limited and Modhumoti Bank Limited.
Earlier, eight proposed banks, including those cleared on February 5, applied to the BB for licences to start their business, upon compliance with the requirements as per the terms and conditions of the letter of intent (LoI).
Another proposed bank — NRB Global Bank Limited — has been allowed to complete its formalities, as required by the LoI, by March 31 this year.
BBN/SSR/AD-11Feb13-11:40 pm (BST)
