BB to take actions against banks involved in stock scam
Thursday, 12 May 2011
FE Report
The central bank has conducted probe into the banks whose names were mentioned in the share market scam report, submitted to the finance minister on April 7 last, a top Bangladesh Bank (BB) official said Wednesday. "We'll take action against the banks in line with the BB's investigation report," BB Senior Deputy Governor Nazrul Huda said while replying to a query. The probe report said some banks pocketed large profits violating the rules and regulations. Some of the banks were also involved in fuelling the stock prices in 2010. The report has recommended that the BB take action against the financial institutions in question. The central bank of Bangladesh identified that at least 16 commercial banks, particularly private commercial banks (PCBs), crossed their exposure limit in the capital market investment last year. "Currently, all banks' exposure to the capital market is within the limit," a BB official said, adding that the central bank has worked to amend the existing banking companies act relating to investment in the capital market from the total deposit of a bank. Currently, the banks are allowed to invest 10 percent of its liabilities (deposits) in the share market.
The central bank has conducted probe into the banks whose names were mentioned in the share market scam report, submitted to the finance minister on April 7 last, a top Bangladesh Bank (BB) official said Wednesday. "We'll take action against the banks in line with the BB's investigation report," BB Senior Deputy Governor Nazrul Huda said while replying to a query. The probe report said some banks pocketed large profits violating the rules and regulations. Some of the banks were also involved in fuelling the stock prices in 2010. The report has recommended that the BB take action against the financial institutions in question. The central bank of Bangladesh identified that at least 16 commercial banks, particularly private commercial banks (PCBs), crossed their exposure limit in the capital market investment last year. "Currently, all banks' exposure to the capital market is within the limit," a BB official said, adding that the central bank has worked to amend the existing banking companies act relating to investment in the capital market from the total deposit of a bank. Currently, the banks are allowed to invest 10 percent of its liabilities (deposits) in the share market.