Bangladesh Bank has made mandatory taking its permission to hold more than 5 ((five) percent shares of a private bank by any individual or private body directly or indirectly, under single or joint arrangement, reports UNB.
Similarly, those who already owned more than 5 percent shares of a bank must inform the central bank within a month in writing through a specific format issued in this regard.
Banking Regulation and Policy Department (BRPD) of the central bank issued a circular on Wednesday dated November 3 informing its decision.
It said that the BRPD's circular has been issued in compliance with the Banking Companies Act 1991 (Amended 2013), which stipulated seeking of central bank's permission for owning more than 5 percent shares of a bank.
Official sources said the new circular of the central bank came against the backdrop of its move to check concentration of more than 5 percent of banks' shares or ownership in the hands of any individual or companies.
The BB circular said that any individual or a company wishing to hold more than 5 percent of shares of a bank should apply to Bangladesh Bank in a specific form set for the bank sponsors and must be sent to the central bank within a month.
The rules will be similarly applicable for both single and joint shareholders.
The existing Banking Companies Act does not allow owning more than 10 percent shares of a private bank by any individual, or the members of a family or a company. The same rule bars having more than two directors in the board of a bank from a single family or company.
Sources said the central bank observed that some of the banks have more than two directors from a single family. The BB recently issued letters to the banks to comply with the rules of the Banking Companies Act in the case of bank directorship.
But responding to the BB directive, some directors wrote to the central bank that they have became directors of their banks in the capacity holding shares purchased through the stock market, not under the family ownership.
The Central Bank circular asked the owners of more than 5 percent of shares of a bank to inform it in which process they became the shareholders, whether it is through stock market or through private placement of shares or as gift from owners. If the shares are obtained by purchasing from stock market, the amount of the payment must be specified in the form.
However, the circular mentioned that the shareholders who own shares equivalent to 5 percent of a bank's paid up capital do not need to take further permission of the Bangladesh Bank.
Meanwhile, ICB Islamic Bank is now ready to pay off 93 per cent of frozen depositor accounts. These affected depositors had almost lost hope of recovering their deposits placed during Oriental Bank.
ICB Islamic Bank has now increased the amount to Tk 0.5 million effective in November 2014 compared to previous payment of Tk 0.1 million per depositor every 6 months. With this new initiative, over 93 per cent of the affected depositors will receive their full outstanding in November itself and the remaining 7 per cent will also be paid as per the reconstructed scheme for repayment approved by Bangladesh Bank.
CEO of ICBIBL, Muhammad Shafiq Bin Abdullah, mentioned that this is a big step for the Bank and its esteemed customers as it has brought to the fore the credibility of the Bank and the commitment it made of repaying the depositors of the erstwhile Oriental Bank.
To further its commitment to its customers, the Bank has also introduced 'lucrative deposit schemes' wherein such customers would get a higher profit rate which would somewhat compensate them for the lost opportunities of the past, said a statement.
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