FE Report
The government has extended moratorium on some banking activities of the Oriental Bank Limited for six more months to protect depositors' interest and facilitate restructuring of the bank.
The ministry of finance issued an order in this connection Wednesday for implementation by the Bangladesh Bank (BB), official sources said.
The ministry on January 25 last imposed six-month moratorium first to put restriction on withdrawal of cash above Tk 10,000 by the depositors. In case of new deposits, there is no restriction for withdrawal of money during the period.
The fresh order will come into effect from July 25 next, the sources added.
Earlier, the central bank sent a proposal to the ministry with a request to extend the moratorium for six more months to complete the restructuring process of the bank.
Under the moratorium period, all kinds of legal proceedings against the bank will be barred.
However, the bank will continue to provide all services to the clients.
The order on the moratorium was issued under clause 77 (1) and (2) of the Banking Companies Act 1991.
The BB took over the overall management of the bank and appointed an administrator on June 19 last to protect the depositors' interest.
The Oriental Bank Limited, a Shariah-based bank, started its operation on May 20, 1987 under the name of Al Baraka Bank Bangladesh Limited.
Moratorium on some Oriental banking activities extended
FE Team | Published: June 28, 2007 00:00:00 | Updated: February 01, 2018 00:00:00
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