Bangladesh Bank appoints Ferdaush Hossain as Union Capital's administrator

Bangladesh Bank has appointed Md Ferdaush Hossain, a director of the central bank, as an administrator for the troubled non-bank financial institution Union Capital.

The central bank issued the letter on Sunday.

Bangladesh Bank Executive Director and spokesperson Arief Hossain Khan said the administrator was appointed in the interest of depositors.

He will perform the duties and exercise the powers of the managing director and chief executive officer of the company.

Recently, the central bank identified 20 financial institutions as "troubled" based on various indicators, with Union Capital, among them.

According to Bangladesh Bank data, as of December last year, Union Capital had collateral worth only Tk 183 crore against loans of Tk 1,184 crore. Of these loans, Tk 1,136 crore -- or 95.92 percent -- had defaulted.