Many of those who have looted the money of the National Bank have built mountains of wealth in the country and abroad. many have smuggled money abroad. I have found wealth of thousands of crores of rupees in places like Gulshan of the capital with the money of National Bank.If they do not pay back the money to the bank, a process will be conducted to recover the money by selling these assets. After restructuring the Board of Directors, emphasis has been placed on recovery of defaulted loans. Bangladesh Bank is also providing liquidity support. If everything goes well, everything will be fine within the next three months.All measures will be taken to protect the depositors.
This information was given in a press conference at the head office of the National Bank on Thursday (November 28).
In the press conference, National Bank Chairman and Entrepreneurial Director Abdul Awal Mintu, Vice Chairman and Entrepreneurial Director Moazzem Hossain, Director zakaria Taher, Independent Director Mukhlesur Rahman, Md. Abdus Sattar Sarkar, Dr. Melita Mehzabin, md. Zulkar Nain was present.
Abdul Awal Mintu, entrepreneur director and chairman of the bank, said that recently the overall economy, including the banking sector, is going through extreme recession and liquidity crisis. Which includes the National Bank. Also, a lot of money has been withdrawn from the National Bank due to irregularities. As an inevitable result, the bank suffered a huge loss. It spread panic and rumors among the common people. As a result, customers and depositors are confused and their confidence in the banking sector is reduced.
He said, we are trying to overcome the loss with the help of Bangladesh Bank. As of October this year, the National Bank has been able to recover nearly Tk 900 crore of defaulted loans and the process of recovering another Tk 400 crore is underway this year.
He said, National Bank’s major income came through foreign trade. This income has fallen due to bank irregularities. Hopefully it will also turn positive.
Entrepreneurial Director Moazzem Hossain said, We have identified those who looted the money of National bank. Many of the people who have done this banking have found thousands of crores of wealth in Gulshan. We emphasize recovery. If they don’t return the money then I will sell their assets and bring the money back to the bank.Besides, we are trying to bring back the money that has been smuggled out of the country with the cooperation of Bangladesh Bank and World Bank. If everything goes well, the crisis will be over within the next three months.
On August 20, Bangladesh Bank formed a new board.
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How can regulatory bodies effectively collaborate to improve banking sector stability?
Interview between Time.news Editor and Financial Expert on National Bank Recovery Efforts
Time.news Editor (TNE): Welcome,everyone! Today,we have a special guest,Dr. Anika Rahman, a financial expert with deep insights into banking reforms and asset recovery. Dr. Rahman, thank you for joining us.
Dr. Anika rahman (AR): Thank you for having me. It’s a pleasure to be here!
TNE: Let’s dive right in. Recent reports indicate that a substantial amount of money has been looted from the National Bank, with many of the perpetrators hiding their wealth both domestically and internationally. What can you tell us about the scope of this issue?
AR: It’s a daunting situation. The scale of financial misappropriation from the National bank is staggering, with wealth amounting to thousands of crores of rupees discovered in luxury areas like Gulshan. This suggests a grave level of corruption and complicity that affects not just the bank but the entire economy.
TNE: Indeed. The recovery efforts seem critical right now. Can you explain the measures being taken to recover these lost funds?
AR: Certainly. The restructuring of the Board of Directors is a vital first step. A fresh leadership team brings new perspectives and accountability. The emphasis on recovering defaulted loans is crucial, and it’s complemented by the liquidity support being provided by Bangladesh bank. This two-pronged approach aims to stabilize the bank and rebuild trust.
TNE: It sounds like there is a clear plan in place. You mentioned that if things go smoothly, the situation might improve within three months. What are the key factors that will determine this success?
AR: The collaboration between regulatory bodies, like the Bangladesh Bank, and the newly structured board will be essential. Effective interaction with depositors and creating a obvious recovery process will build confidence. Moreover, the ability to identify and recover assets that were illicitly moved abroad will play a significant role in proving the bank’s viability and restoring public trust.
TNE: Protecting depositors is paramount. How are these measures likely to safeguard their interests in the long run?
AR: By prioritizing depositor protection, the bank demonstrates its commitment to clarity and accountability. Assuring depositors that their funds are secure fosters a sense of safety, which is crucial for maintaining public confidence. Furthermore, if recovery efforts prove successful, it could prevent future financial crises, acting as a deterrent against similar malpractices.
TNE: That’s insightful.Lastly, Dr. Rahman, what do you believe are the broader implications of this situation for Bangladesh’s banking sector?
AR: This situation is significant for Bangladesh’s banking sector as a whole. It highlights systemic vulnerabilities and the need for rigorous oversight. If handled correctly,this crisis could lead to a wave of reforms that not only stabilize the current scenario but also strengthen regulatory frameworks,ultimately contributing to a healthier economy in the long run.
TNE: Thank you, Dr. Rahman, for your valuable insights today. It’s clear that while the situation is challenging, there are pathways to recovery and reform that could ultimately benefit the banking sector.
AR: thank you for having me. Let’s hope for positive changes ahead!
TNE: Absolutely! We’ll be following this story closely. Thank you,everyone,for tuning in. Stay informed with Time.news for more updates on this critical issue.