Dhaka, Bangladesh (BBN) - The central bank of Bangladesh has given the final clearance to two more proposals for new commercial banks in order to issue licences to start business, upon their due compliance with all the preconditions, officials said.
These are the Farmers Bank Limited and the Midland Bank Limited.
The clearance came at the meeting of the board of directors of Bangladesh Bank (BB) held at the central bank headquarters in the capital Dhaka on Tuesday with BB Governor Atiur Rahman in the chair
Meanwhile, Sitara Alamgir has replaced the first-proposed chairman of the Farmers Bank Dr Mohiuddin Khan Alamgir.
On the other hand, proposed chairman of the Midland Bank Limited Moniruzzaman Khandker has been asked to leave one post of chairmanship as early as possible.
Mr. Khandker is now holding the post of chairman of the Karmasangsthan Bank.
The BB board heard from the applicants about their business plans with the two proposed banks on Tuesday before giving them the no-objection certificates (NOCs).
“Our board of directors has decided to issue NOCs to two more proposed commercial banks,” BB Deputy Governor SK Sur Chowdhury told reporters after the meeting.
He also said the proposed banks would have to be incorporated as bank companies with the Registrar of Joint Stock Companies and Firms (RJSCF) before receiving licences for setting up their head offices.
“The banks will have to apply for branch licences after setting up their head offices,” the BB deputy governor said, adding that the branch licences would be issued after conducting of a pre-opening inspection.
He also said the inspection would cover different indicators including risk management and internal control and compliance.
Another BB official said Mr. Khandker would have to resign from the post of chairman of the government-owned Karmasangsthan Bank before receiving the NOC. “Otherwise the issuing of NOC will be delayed.”
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.
Currently, the central bank is working on scrutiny of different documents including loan status of the sponsors of Modhumoti Bank Limited.
Earlier, eight proposed banks applied to the BB for licences to start their businesses, 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-19Feb13-10:01 pm (BST)