BB asks NBFIs to be stricter in stopping anomalies
The meeting was held a day after a committee had been formed to probe irregularities in NBFIs
The Bangladesh Bank has instructed chief executives and managing directors of non-bank financial institutions (NBFIs) to be stricter in stopping irregularities.
Its Deputy Governor Ahmed Jamal gave the directive at a meeting with NBFIs on Wednesday.
The meeting was held a day after a committee had been formed to probe irregularities in NBFIs.
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It was a pre-scheduled meeting, said BD Finance Managing Director and CEO Md Kyser Hamid, who attended it.
He told The Business Standard the central bank had directed NBFIs to be stricter about governance.
"The Bangladesh Bank also directed them to consider their financial capabilities and be conservative in paying cash dividends when declaring dividends."
Hamid said a request had been made at the meeting to set up a fund to assist weak NBFIs and another fund to help institutions that are unable to return depositors' money.
But the central bank had not commented on the matter.
Spokesperson for the central bank Serajul Islam declined to comment on the meeting, which was chaired by Ahmed Jamal and attended by executive directors and general managers of the departments concerned.
The Bangladesh Bank on Monday formed a high-level committee to probe whether its officials had received bribes to collude with PK Halder, to determine the liability of those involved in financial irregularities at Bangladesh Industrial Finance Company Limited, and to investigate irregularities in all NBFIs.
Deputy Governor of the central bank AKM Sajedur Rahman Khan was made the head of the committee. The committee would give suggestions to prevent future irregularities in light of what had already happened in NBFIs.
It has three months to submit a report.
Rashedul Haque, former managing director of International Leasing, which is controlled by PK Halder, gave a confessional statement in court on 2 February.
He said Reliance Finance and International Leasing used to pay Tk5-7 lakh to inspection officers of the Bangladesh Bank to suppress irregularities in NBFIs.
Moreover, Shah Alam, the then general manager of the Department of Financial Institutions and Markets of the central bank, would be paid Tk2 lakh per month.
Former deputy governor SK Sur Chowdhury would manage irregularities and corruption.
Shah Alam was transferred to a different department after Rashedul's statement was reported in the media.
