Bangladesh Bank Headquarters

Dhaka, Bangladesh (BBN)– The central bank of Bangladesh has decided in principle to give licence to one more private commercial bank shortly.

Proposals for two other banks are also under process, Bangladesh Bank (BB), the country’s central bank, officials said.

The decision was taken at a meeting of the BB’s board of directors held at its headquarters in Dhaka on Tuesday with Governor Fazle Kabir in the chair.

“Our board has given clearance in principle to issue licence to the proposed Community Bank Limited, sponsored by Bangladesh Police Welfare Trust after completing all rules and regulations properly,” a BB senior official told the BBN in Dhaka.

He also said the board also asked the relevant department of the central bank to place further a proposal with eligible documents for final approval.

“We’ll submit a complete proposal to the board for final approval after receiving relevant papers from the proposed bank,” the central banker explained.

He also said managing director and chief executive of the proposed bank will have to present their business plan in front of the board members.

Another two proposals for setting up new private banks are still under process, the BB official noted.

The proposed banks are Bengal Bank Limited and Peoples Bank Limited.

A ruling party lawmaker and owner of Bengal Group of Industries lobbied for Bengal Bank while a Chittagong-based businessman MA Kashem pursued for Peoples Bank.

In 2009, after Awami League formed the government, nine banks were given the permission on political consideration despite the opposition from different quarters.

Shimanto Bank, sponsored by BGB Welfare Trust, was given licence in 2016.

Currently, there are 58 banks in Bangladesh. Of them, 40 are local private banks, nine foreign and nine state-owned.