Dhaka, Bangladesh (BBN) – The central bank of Bangladesh has appointed an observer to the NRB Commercial Bank Limited (NRBC Bank) for improving financial health through strengthening monitoring and supervision of the bank.
Masud Biswas, general manager of the Foreign Exchange Policy Department of Bangladesh Bank (BB), has been appointed as the observer to closely monitor the overall activities of the new private commercial bank (PCB).
Talking to BBN, a BB senior official said the central bank has appointed the observer to improve internal control and compliance, risk management and ensuring credit discipline through strengthening supervision and monitoring.
The observer is empowered to attend policy making meetings like that of board of directors, executive committee and audit committee.
“We’ll take action in line with our observer’s reports on the bank’s performances,” said the central banker said without elaborating.
The measure came after detecting irregularities in sanctioning loans amounting to BDT 3.01 billion.
Three central bank investigation teams found the irregularities through conducting inspections in the bank’s principal branch and Uttara branch in Dhaka, and Chandraganj branch in Laxmipur in November 2016.
Besides, the bank’s non-performing loans jumped by BDT 1.22 billion to BDT 1.28 billion at the end of September 2016, which was only BDT 58.70 million at the end of December 2015, the BB data showed.