BSEC flags audit issues in 31 banks, NBFIs; seeks BB action
Auditors have flagged the banks’ and NBFIs’ financial health and governance, citing adverse or qualified opinions, emphasis of matter, going concern risks, and other material uncertainties.
The Bangladesh Securities and Exchange Commission (BSEC) has expressed concerns over the audited financial statements of 31 listed banks and non-bank financial institutions (NBFIs) for the fiscal year ending 31 December 2024, citing issues raised by the auditors.
Auditors have flagged the banks' and NBFIs' financial health and governance, citing adverse or qualified opinions, emphasis of matter, going concern risks, and other material uncertainties.
The BSEC sent a letter to the Bangladesh Bank on 4 December to take necessary regulatory action against the 19 banks and 12 NBFIs.
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The commission said auditors' observations could undermine investor confidence, reduce market transparency, and affect overall trust in the capital market.
BSEC Director and spokesperson, Md Abul Kalam, said TBS, "Problems in financial statements affect not just individual institutions but the entire market. We have informed Bangladesh Bank to take the necessary measures to protect investors."
Identified Banks: AB Bank, Al-Arafah Islami Bank, Dhaka Bank, Eastern Bank, First Security Islami Bank, ICB Islamic Bank, IFIC Bank, Mercantile Bank, National Bank, NRB Bank, NRBC Bank, One Bank, Prime Bank, Pubali Bank, Rupali Bank, SBAC Bank, Social Islami Bank, Standard Bank, and United Commercial Bank PLC.
Identified NBFIs: Bangladesh Finance, Bangladesh Industrial Finance Company, Bay Leasing and Investment, Fareast Finance and Investment, FAS Finance and Investment, First Finance, International Leasing and Financial Services, Islamic Finance and Investment, Midas Financing, Peoples Leasing and Financial Services, Phoenix Finance and Investments, and Union Capital Limited.
BSEC said that ensuring the credibility of financial statements is critical for market stability. Companies with going concern risks require special attention. Prompt action by the Bangladesh Bank would help strengthen financial governance and restore investor confidence.
