Bangladesh Bank moves to stop illegal banking by cooperative societies
Bangladesh Bank today urged the Department of Cooperatives to take measures against illegal banking activities carried out by several cooperative societies.
It raised the issue at a virtual meeting of six financial regulators in Bangladesh, said Md Serajul Islam, spokesperson of the central bank.
The event was attended by the top officials of different financial regulators, including Bangladesh Bank, Bangladesh Securities and Exchange Commission, Insurance Development and Regulatory Authority, Registrar of Joint Stock Companies and Firms, Microcredit Regulatory Authority and Department of Cooperatives.
BB Governor Abdur Rouf Talukder presided over the meeting.
The BB's spokesperson said some cooperative societies are now using names of banks, which is misguiding ordinary people.
Besides, they are also doing illegal banking by mobilising deposits from the commoners.
Under such a situation, the commoners' fund is now in a risky zone.
In addition, some other cooperative societies are now giving out loans to the individuals, who are not the members of the organisations, which is a breach of the rules, Islam said.
So, the central bank requested the Department of Cooperatives to take regulatory measures to stop the unlawful operation, he said.
Comments