Central bank unhappy with ranking of local aspirants, sits again Sunday
The central bank yesterday approved three new banks sponsored by non-resident Bangladeshis (NRBs) on condition that they will double their earlier proposed capital.
The meeting of the Bangladesh Bank Board of Directors that took the decision was adjourned till Sunday. When it resumes, proposals for local and private banks may be considered, meeting sources said.
As some Board members became sceptical about ranking of the proposals made by the central bank officials, they instructed the BB staff to make a detailed PowerPoint presentation on the matter at Sunday’s meeting.
Insiders say the central bank may allow more new banks against its will in the face of pressure from the government high-ups.
Speaking anonymously, an official said there is political pressure on BB to give nod to proposals for nine new banks, but the central bank is unwilling to give the go ahead to more than five.
The banks likely to be approved are all enjoying blessings of the government high-ups, the official added.
Though the Board took an important decision like setting up of new banks, two members did not attend the meeting chaired by Bangladesh Bank Governor Atiur Rahman.
UK expatriate Iqbal Ahmed and US expatriates Nizam Chowdhury and Farashat Ali are the main sponsors of the three NRB banks.
A BB official said the names of the three banks will be finalised when those will be given licences later.
The Board at its meeting yesterday decided that the NRB banks will be required to have an initial capital of Tk 400 crore. However, the central bank had earlier set the amount at Tk 200 crore.
The initiators of the NRB banks will have to bring the initial capital to the country in foreign currency through the banking channel.
For the local private commercial banks the Board discussed in details proposals for 16 short-listed banks from among 37 applications.
Some Board members raised questions as to whether the ranking was done duly and whether political consideration was a major factor behind it.
The Board asked the central bank officials to make a detailed PowerPoint presentation next Sunday on the criteria of ranking the proposals, meeting sources said.
The sources added the Board members wanted to know on what basis a certain proposed bank was given more points while another got fewer points.
The BB officials failed to give a satisfactory reply on the spot.
Among the eight directors, Finance Secretary Dr Mohammad Tareque and Prof Sanat Kumar Saha were absent from the meeting.
-With The Daily Star input
