BB orders more paperwork

The central bank has asked its officials concerned to place the proposals with more required documents again in the next meeting for reconsideration of approval of three new banks.

The decision was made in a meeting of the board of directors at Bangladesh Bank (BB) headquarters in Dhaka on Tuesday, with BB Governor Fazle Kabir in the chair.

The board, however, expressed satisfaction over the documents submitted by the proposed Bengal Commercial Bank Limited, according to the BB officials.

It asked the officials concerned to place a proposal for issuing a letter of intent (LoI) for the proposed Bengal Bank.

The officials have also been asked to submit more required documents of two other proposed banks--Peoples and Citizen--in the next meeting for approval.

The board sought documents with recommendation of the application review committee for consideration of issuing LoI for the proposed Peoples Bank Ltd.

It also sought tax-related documents of two sponsor directors of the proposed Citizen Bank Ltd, BB spokesperson Md Serajul Islam, also executive director, told the FE after the meeting.

Another BB official said the board sought the review committee's recommendation after changing sponsor directorships of the proposed Peoples Bank.

After Awami League formed government in 2009, nine banks were given permission on 'political consideration' despite opposition from different quarters.

Besides, Shimanto Bank Limited, owned by BGB Welfare Trust, was given licence in 2016.

Currently, there are 58 banks in Bangladesh. Of them, 40 are local private banks, nine foreign banks and nine state-owned banks.

[email protected]