BB team hears MD

The Bangladesh Bank (BB) standing committee Monday took note of what BASIC Bank Limited managing director (MD) Kazi Faqurul Islam said in defence of his alleged involvement in financial irregularities.
A four-member committee, headed by BB deputy governor Nazneen Sultana, heard the MD's position regarding his alleged involvement in financial corruptions along with failure in protecting the depositors' interest.
In the hearing Mr Islam has been asked to submit more documents in support of his arguments, a member of the high-powered committee told the FE.
"We'll submit our recommendations to the governor in this connection after completing the hearing," the committee member said.
Talking to the FE, another BB official said the governor will take necessary actions on the basis of the recommendations.
BB earlier issued a show-cause notice to the BASIC Bank MD in line with its senior management team decision under Clause 46 of the Banking Companies Act, which gives the central bank the authority to remove an MD, if his/her activities prove harmful to the depositors.
The Act also dictates that in such case BB must give the MD a reasonable time for self-defence.
According to the BB notice, the BASIC Bank MD failed to take necessary actions after detecting financial irregularities involving around Tk 35 billion at different braches of the state-run bank between 2012 and 2013.
On April 6 last, the central bank revived its standing committee after more than two years to deal with alleged irregularities of the chief executives of the commercial banks.