BB appoints observer to First Finance Ltd

The central bank has appointed an observer to another non-banking financial institution (NBFI) to closely monitor its operations, officials said.
A K M Amjad Hussain, general manager of Financial Integrity and Customer Services Department of Bangladesh Bank (BB), has been appointed as the observer to First Finance Limited.
The observer is empowered to attend its policy-making meetings, including those of board of directors, executive committee and audit committee, to oversee their functions, according to the BB officials.
"We've appointed the observer to First Finance Ltd to help improve its financial heath through close monitoring," a BB senior official told the FE on Tuesday.
He also said the observer will work to ensure good governance in the NBFI by strengthening supervision and monitoring.
The observer has been appointed, as the overall performance of First Finance has not been in a satisfactory level for the past few months.
Besides, a BB investigation has recently found various irregularities in the NBFI in sanctioning loans, the official explained.
The central bank earlier appointed observers to two NBFIs on the same ground.
Meanwhile, BB is likely to issue a fresh warning to the NBFIs against any irregularities in sanctioning loans from a review meeting today (Wednesday). It is scheduled to be held at the central bank headquarters with Governor Fazle Kabir in the chair, according to the BB officials.
Currently, 33 NBFIs are running their business in the country.
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