Bangladesh Bank on Wednesday gave the go-ahead for setting up two new non-bank financial institutions on the basis of political consideration, said officials of the central bank.
The two proposed NBFIs are—CAPM Venture Capital Finance with its proposed chairman Mahmud Hossain, and Meridian Finance Investment with its proposed chairman Kazi Aminul Islam.
The board of directors of the central bank has taken the decision at the BB headquarters asking the institutions to complete the required measures within six months.
The two proposed NBFIs will have to deposit Tk 100 crore as paid-up capital with the central bank and submit business plan in accordance with the BB’s timeframe.
The BB will issue licences to the two institutions to operate their business after scrutinizing their business plan and profiles of the directors of the NBFIs.
The BB earlier gave approval to 31 NBFIs for operating business in the country’s financial sector.
The BB approved Agrani SME Financing Company Ltd in January 2011 and Bangladesh Infrastructure Finance Fund Ltd in October of the same year.
A BB official told New Age on Wednesday that the central bank had been forced to approve the two proposed NBFIs due to the government pressure.
The central bank has recently faced huge criticism as it approved nine new banks on the basis of political consideration, ignoring the opinions of the business experts and economists.
According to the experts, the nine new banks have already put an adverse impact on the country’s financial sector.
Some BB officials said that the two NBFIs would also create pressure on the market as the existing 31 NBFIs were enough for the country’s financial sector.
But a director of the central bank told New Age on Wednesday that the new NBFIs would boost the venture capital in the country as they would bring equity from the foreign countries.
The new NBFIs will also play a role in bringing foreign direct investment, he said.
He claimed that the ownerships of 17 to 18 NBFIs out of 31 were controlled by the foreigners but the local business people would control the ownership of the two new institutions.
When asked whether the central bank considered the government had directed to allow the two NBFIs, he said that BB had taken the decision on its own.
‘A number of organisations had earlier sought permission to set up new NBFIs. But the central bank has selected only two institutions,’ he said.
-With New Age input
