2024-08-21 09:37:06
The central bank has imposed restrictions on disbursement of loans and opening of letters of credit (LC) among six banks in the country which are under the control of S Alam Group. These banks will not be able to disburse loans and open LCs until further orders. Bangladesh Bank informed banks and financial institutions about the ban.
Monday (August 19) Executive Director and Spokesperson of Bangladesh Bank. Majbaul Haque confirmed this information to the media.
According to the sources of Bangladesh Bank, the banks which will not be able to disburse loans and open LCs are Islami Bank, First Security Islami Bank, Social Islami Bank, Global Islami Bank, Bangladesh Commerce Bank and Union Bank.
In the letter given to the banks and financial institutions, it has been said that these banks will not be able to distribute new loans and will not be able to open loans until further instructions. Can’t even renew previous loans. However, agriculture, working capital, SMEs, loans against deposits and incentive packages can provide up to Tk 5 crore. If it is more than 5 crore rupees, approval of Bangladesh Bank should be taken.
During the tenure of the outgoing government, loan scams, encroachment and looting took a terrible form in the banking sector. S Alam Group took over eight banks including Islami Bank. After taking over these banks, S Alam Group took thousands of crores of loans anonymously. As a result, banks are in dire financial straits. Not only the loans, the influential group has opened anonymous companies to keep the ownership of these banks in their hands. S Alam Group failed to withdraw a large amount of cash from Islami Bank after the sudden collapse of the Awami League government in the face of the student movement. After this last week, Bangladesh Bank ordered to stop encashment of checks of 1 crore rupees or more issued by a total of nine banks including banks owned by S Alam Group through any other bank.
An official of Bangladesh Bank said that these banks under the control of S Alam Group have increased their current account deficit by lending more than their deposits. So far, Bangladesh Bank has lent money to these banks without collateral on special consideration and kept transaction accounts open. This is why the financial crisis of these banks has become more extreme. Now the central bank has given instructions to stop the loan disbursement.
It is known that the former governor of Central Bank Abdur Rauf Talukdar and former chairman of BSEC Shibli Rubaiyat ul Islam helped this influential group in bank robbery and share scam. Both of them abdicated after the fall of the government, but the government has not taken any action so far.