• Tuesday, July 29, 2014

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Central Bank

Bank borrowing shoots up ahead of Eid

Bank borrowing shoots up ahead of Eid

The government's borrowing from the banking system soared 263 percent year-on-year in the first nine days of the current fiscal year as expenditure exceeded revenue. The amount was Tk 5,011 crore during July 1-9, against Tk 1,380 crore in the same period a year ago, according to central bank statistics. The total amount was borrowed from Bangladesh Bank. The government aims to borrow Tk 31,221 crore from the banking system in the current fiscal year. The big jump in bank borrowing is a temporary phenomenon, a finance ministry official said. The...

BB aims to rein in inflation

BB aims to rein in inflation

The new monetary policy for the first half of the current fiscal year focuses on reining in inflation, keeping the key policy rates unchanged, the central bank said yesterday. Bangladesh Bank also forecast the country's economic growth will be between 6.2 percent and 6.5 percent in fiscal 2014-15 though the government in the new...

BASIC Bank being probed for money laundering

Bangladesh Bank is investigating whether any money laundering crimes were committed by BASIC Bank when it gave out loans using forged documents. BB's financial intelligence unit is looking into the matter and will forward the findings to the Anti-Corruption Commission (ACC), Abu Hena Mohammed Raji Hasan, deputy governor of the central bank, yesterday told reporters while announcing the monetary policy. The move comes after investigations by other departments of the central bank concluded that the bulk of the amount that was...

BB warns bankers on irregularities

The central bank yesterday strictly warned off all bank chiefs from pandering to irregularities at their institutions or else they would be removed from their posts. Without mentioning any name, Bangladesh Bank Governor Atiur Rahman said: “We have done exactly that to a certain managing director recently.” BB in May fired BASIC Bank Managing Director Kazi Faqurul Islam for presiding over a period of serious irregularities at the state-run bank. “The recurrence of irregularities can't be forestalled if you sit idle after...

BASIC Bank Probe

BB looks to ACC action

The central bank is relying on the Anti-Corruption Commission to sue Sheikh Abdul Hye Bacchu, chairman of the recently dissolved BASIC Bank board, for huge financial irregularities in the state-run bank.   “The last time the ACC took reports on BASIC Bank was in the middle of last year. We now have more detailed reports, which we are willing to give to the commission for further investigation,” SM Moniruzzaman, executive director of Bangladesh Bank, told a press briefing yesterday. “An in-depth...

BB raises reserve requirement for banks

BB raises reserve requirement for banks

Bangladesh Bank yesterday raised the daily average reserve requirement for banks after a pause of four years to 6 percent from 5.5 percent in a bid to contain inflation. Also called the cash reserve ratio (CRR), reserve requirement is the minimum fraction of customer deposits and notes that each commercial bank must hold as...

BASIC Bank's loan defaults swelling to Tk 1,700cr

BASIC Bank's loan defaults swelling to Tk 1,700cr

BASIC Bank's default loans continue to escalate in the face of irregularities, despite Bangladesh Bank's efforts to keep it in check. By the end of June, it is forecast to hit Tk 1,700 crore, up 13 percent from March 30, according to a finance ministry report placed in parliament on Thursday. The figure is 13.45...

Four graft-ridden branches control most business of BASIC Bank

Four graft-ridden branches control most business of BASIC Bank

Troubled BASIC Bank has doubled its branches to 68 in the last five years, but 70 percent of its business activities are controlled by graft-ridden four branches. Of the four branches, loan activities have recently been suspended in three --Dilkusha, Gulshan and Shantinagar -- by the central bank on charges of loan frauds. The fourth one is the bank's main branch. The bank had only 32 branches in September 2009 when the incumbent board of directors was appointed by the government. The number of employees has more than trebled ever since. Despite rapid expansion, the bank has failed to diversify its business and attract small and medium enterprises to its services. According to...

Dissolve BASIC Bank board: BB

Dissolve BASIC Bank board: BB

The central bank today recommended to the finance ministry to dissolve the board of directors of BASIC Bank for loan irregularities. Bangladesh Bank this morning sent a letter to the ministry in this regard, sources said.   The recommendation came three days after the central bank fired the BASIC Bank Managing Director Kazi Faqurul Islam...

Lending suspended at 3 BASIC Bank outlets

The central bank and the finance ministry have finally stepped in to rescue the troubled BASIC Bank, though they are yet to initiate any action against the instigator behind the irregularities, the bank's chairman Sheikh Abdul Hye Bacchu. As part of the rescue plan, Bangladesh Bank yesterday suspended fresh loan activities and disbursement of already sanctioned loans of the branches where most of the indiscretions took place – Gulshan, Dilkusha and Shantinagar. BB investigations detected massive financial irregularities involving around Tk...

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