The Governor was briefing the media at a programme of the BB’s monetary policy declaration for the fiscal year 2019-20
Bangladesh Bank (BB) Governor Fazle Kabir on Wednesday said they are in very ‘interesting situation’ as whatever they decide regarding any bank or non-bank financial institution brings negative reactions.
“In 2018, we saved Farmers Bank from its downfall by providing funds taken from state-owned banks. Many termed it as a wrong decision, saying we should have liquidated the bank,” said the BB governor.
On the other hand, when the central have announced the liquidation of People’s Leasing and Financial Services (PLFS), many people said it should have been saved like the Farmers Bank, Fazle Kabir added.
The Governor was briefing the media at a programme of the BB’s monetary policy declaration for the fiscal year 2019-20.
“The PLFS has been facing problems since 2013. We have tried our best to stop it from collapsing. However, we could not save PLFS since we have to work for the interest of the depositors,” he added.
The central bank works for the interest of depositors, and to ensure their interest it has taken the decision, said the governor.
While asked about the fragile condition of the new banks and permitting new banks, he said they had received three applications in the last three and a half years. After scrutinising, they have given approval to two banks.
About the deposits kept in the PLFS and other companies, Deputy Governor SM Moniruzzaman said PLFS and other companies themselves have to give the money back to the depositors as per the policies of the companies.
In reply to another query, Moniruzzaman said as per laws, actions have been taken against directors and shareholders of the financial institution, who have become directors of other banks by amassing money.
They are former directors. When they took the money away, they did it through a process. So, at present, it is not possible to complain and take action against them.
Until we have solid proofs against them, we cannot do anything. However, we are observing them.
Whenever we have come to know about any offence we have informed the Anti-Corruption Commission (ACC) immediately.
The ACC put an embargo on them for going abroad.
He also added that all the scams so far have been detected by the BB.
Replying to another question, he said even all the scams regarding cash incentive issues have been identified by the central bank. So, it is not just to say that monitoring is not being done properly.
Asked about fresh rescheduling facility, the governor said all these have been done to recover loans.
“This is the only process, and if we stop it the banking sector will be sluggish.”