BB appoints observer to Mercantile Bank

The central bank has appointed an observer to Mercantile Bank Limited for improving its financial health, officials said Wednesday.

Masud Biswas, general manager of the foreign exchange policy department of the Bangladesh Bank (BB), has been appointed as observer of the private commercial bank.

"We've appointed the observer after seeing falling trend of major financial indicators of the bank," a senior official of the BB told the FE.

"We also found weakness of both corporate governance and risk management of the bank," the central banker explained.

He also said the BB wants to improve the overall financial health and ensure good governance of the bank through strengthening of supervision and monitoring.

The observer is empowered to attend policy-making meetings including those of the board of directors, the executive committee and the audit committee of the

bank to oversee their functions, according to the central banker."We'll take action in line with our observer's reports on the bank's performance," the BB official said without elaborating.

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