1 week Ago
The Bangladesh Bank (BB) has asked five banks to send their managing directors (MDs) on three-month leave ahead of the central bank's forensic audit initiative. The banks are: Social Islami Bank, Global Islami Bank, Union Bank, Exim Bank, and ICB Islamic Bank. The banks, except for ICB and Exim Bank, were heavily controlled by S Alam Group.
BB Governor Ahsan H Mansur presided over the meeting. The central bank plans to appoint auditors for a forensic audit, prompting the directive to send the MDs on leave. Earlier, First Security Islami Bank had also sent its MD on leave following similar instructions.
Industrial conglomerate S Alam reportedly took out thousands of crores in loans during the previous Awami League regime by weaponising its political influence for business gains. After the political changeover in August 2024, the interim government shook up the bank boards, freeing the banks from S Alam's grip. Besides, internal audits were initiated to scrutinise the balance sheets and assess the actual health of the commercial lenders.
Besides, there were media reports suggesting irregularities in Exim Bank and linking those to Beximco Group, another business conglomerate owned by Salman F Rahman, an influential adviser to deposed prime minister Sheikh Hasina. Rahman is now behind bars on murder charges, while Beximco ventures struggle for operational liquidity and adequate work orders to continue. The decision regarding sending the MDs on leave was made during a meeting between the central bank and top representatives of the five banks today.
The Bangladesh Bank (BB) has asked five banks to send their managing directors (MDs) on three-month leave ahead of the central bank's forensic audit initiative. The banks are: Social Islami Bank, Global Islami Bank, Union Bank, Exim Bank, and ICB Islamic Bank. The banks, except for ICB and Exim Bank, were heavily controlled by S Alam Group.
BB Governor Ahsan H Mansur presided over the meeting. The central bank plans to appoint auditors for a forensic audit, prompting the directive to send the MDs on leave. Earlier, First Security Islami Bank had also sent its MD on leave following similar instructions.
Industrial conglomerate S Alam reportedly took out thousands of crores in loans during the previous Awami League regime by weaponising its political influence for business gains. After the political changeover in August 2024, the interim government shook up the bank boards, freeing the banks from S Alam's grip. Besides, internal audits were initiated to scrutinise the balance sheets and assess the actual health of the commercial lenders.
Besides, there were media reports suggesting irregularities in Exim Bank and linking those to Beximco Group, another business conglomerate owned by Salman F Rahman, an influential adviser to deposed prime minister Sheikh Hasina. Rahman is now behind bars on murder charges, while Beximco ventures struggle for operational liquidity and adequate work orders to continue. The decision regarding sending the MDs on leave was made during a meeting between the central bank and top representatives of the five banks today.
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