NRB bank sponsor directors need to deposit Tk 2.0b
Wednesday, 13 October 2010
Nazmul Ahsan
The sponsor directors of the proposed Non-Resident Bangladeshi (NRB) bank, who have to be NRBs, need to deposit Tk 2.0 billion or 50 per cent of the total paid-up capital to become directors, said draft guidelines of the bank in pipeline.
The amount is nine times more than the amount of Tk 200 million, required for becoming a sponsor director of a commercial bank. The third generation banks were given licenses during the tenure of past Bangladesh Awami League (1996-2001) government against their deposit of Tk 200 million as 50 per cent of the total paid-up capital of a bank.
The remaining 50 per cent or Tk 2.0 billion of the proposed NRB bank has to be raised from public offers through stock market within the next two years of commencement of the banking business, said the guidelines, prepared by Bangladesh Bank (BB) recently.
The BB prepared the guidelines following a directive from the ministry of finance (MoF) in August this year, sources said.
The guidelines will soon be placed to the Cabinet Division for approval, a top MoF official said.
According to the guidelines, the minimum shareholding stake of each sponsor shall be Tk 100 million and the maximum shall be 10 per cent of the proposed bank's total share capital.
"This ceiling of 10 per cent applies to an individual, family member, either personally, jointly or both,' reads the draft guidelines. The proposed NRB bank will be established under the Banking Companies Act, 1991, the draft added.
A top BB official said, this is for the first time a bank is expected to be established with huge initial capital from sponsor directors, which is Tk 2.0 billion. Under the current regulations of BB, the paid-up capital of a bank has to be Tk 4.0 billion latest by August 2011. The directive was issued in August, 2008.
"Though the regulation of the latest paid-up capital requirement for banks was meant for existing banks only in order to strengthen the capital base under the BASEL-2 formula, the similar criteria will also be applicable for new banks," an Executive Director of BB said.
The BB, on the advice of MoF, increased the paid-up capital of a bank from Tk 100 million to Tk 4.0 billion through the passage of a long time since independence, BB sources said.
The Board of Directors shall be comprised of NRB sponsors. Not more than half of them may be appointed Alternate Directors, the draft guidelines of the NRB bank said.
The government plans to establish a Non-Resident-Bangladeshi (NRB) bank soon to meet the longstanding demand of expatriate Bangladeshis, who send home around US$ 10 billion a year, a senior finance ministry official said.
Prime Minister Sheikh Hasina on her recent visit to the US pledged to the NRBs residing in the US the establishment a NRB bank.
The sponsor directors of the proposed Non-Resident Bangladeshi (NRB) bank, who have to be NRBs, need to deposit Tk 2.0 billion or 50 per cent of the total paid-up capital to become directors, said draft guidelines of the bank in pipeline.
The amount is nine times more than the amount of Tk 200 million, required for becoming a sponsor director of a commercial bank. The third generation banks were given licenses during the tenure of past Bangladesh Awami League (1996-2001) government against their deposit of Tk 200 million as 50 per cent of the total paid-up capital of a bank.
The remaining 50 per cent or Tk 2.0 billion of the proposed NRB bank has to be raised from public offers through stock market within the next two years of commencement of the banking business, said the guidelines, prepared by Bangladesh Bank (BB) recently.
The BB prepared the guidelines following a directive from the ministry of finance (MoF) in August this year, sources said.
The guidelines will soon be placed to the Cabinet Division for approval, a top MoF official said.
According to the guidelines, the minimum shareholding stake of each sponsor shall be Tk 100 million and the maximum shall be 10 per cent of the proposed bank's total share capital.
"This ceiling of 10 per cent applies to an individual, family member, either personally, jointly or both,' reads the draft guidelines. The proposed NRB bank will be established under the Banking Companies Act, 1991, the draft added.
A top BB official said, this is for the first time a bank is expected to be established with huge initial capital from sponsor directors, which is Tk 2.0 billion. Under the current regulations of BB, the paid-up capital of a bank has to be Tk 4.0 billion latest by August 2011. The directive was issued in August, 2008.
"Though the regulation of the latest paid-up capital requirement for banks was meant for existing banks only in order to strengthen the capital base under the BASEL-2 formula, the similar criteria will also be applicable for new banks," an Executive Director of BB said.
The BB, on the advice of MoF, increased the paid-up capital of a bank from Tk 100 million to Tk 4.0 billion through the passage of a long time since independence, BB sources said.
The Board of Directors shall be comprised of NRB sponsors. Not more than half of them may be appointed Alternate Directors, the draft guidelines of the NRB bank said.
The government plans to establish a Non-Resident-Bangladeshi (NRB) bank soon to meet the longstanding demand of expatriate Bangladeshis, who send home around US$ 10 billion a year, a senior finance ministry official said.
Prime Minister Sheikh Hasina on her recent visit to the US pledged to the NRBs residing in the US the establishment a NRB bank.