BB governor stresses global collaboration

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Bangladesh Bank (BB) governor Dr.Atiur Rahman put emphasis on establishing global collaboration in strengthening financial stability in Bangladesh. He also said in Bangladesh there have been two episodes in which two troubled banks needed to be restructured or placed in liquidation since introduction of the Scheme. The governor said both were restructured by recapitalization to required levels in new equity structures fully protecting the interests of small depositors. He stated this Sunday in the city while inaugurating as the chief guest the international seminar on "Deposit Insurance System" organized by Bangladesh Bank (BB) with the association of International Asia Pacific regional Committee (APRC) of Switzerland- based International Association of Deposit Insurers (IADI). Deputy governor of BB Nazrul Huda presided over the seminar. "Absence of any call on its resources thus far has resulted in the Scheme looking rather passive, merely collecting insurance premiums from banks and investing the trust funds of the scheme"-the governor said. Dr Atiur Rahman welcomed APRC of IADI to visit Bangladesh with a fairly large outreach team with members from a number of countries in the region. The governor said BB's board of directors is also the Trustee Board of the Deposit Insurance Scheme (DIS) which collects mandatory premiums from banks as insurance covers (not exceeding Tk one hundred thousand per depositor) on deposits in their books. Dr.Atiur Rahman said the premium collections are managed by the Deposit Insurance Trust Fund and depositors are to lodge claims with the Scheme in the event of a deposit-taking bank going into liquidation. - FE Report