Choose shared BB Board not on new Bank

Staff correspondent

A session on Wednesday that Bank Board of Directors, which is well above the need for the establishment of new private banks, Bangladesh ended without any decision on the granting of new licenses.

Two of the most influential BB directors, Finance Secretary Mohammad Tareque and independent Board member of Sadiq Ahmed, that against the Government itself had in the last session move allow establishment of more private banks, have been in Wednesday meet.

The seven members of the Board to meet on the Wednesday, only the BB Governor, Atiur Rahman, and banking division preferred Secretary Shafiqur Rahman Patwary new Bank for more licenses. The rest of the Board said, more control was needed before a decision in this regard in view of the significant and widespread criticism that more banking licenses grant the Government was asked by political considerations, sources present at the meeting chaired by Atiur Rahman said.

Recently asked Finance Minister AMA Muhith, the Central Bank invite applications for new banking licenses as host of the Awami League leaders and businessmen, who was loyal to him was lobbying hard secure BB-authorisation for the establishment of a new private banks.

Leading economists and bankers such as Wahiduddin Mahmood and BB Governor Saleh Uddin Ahmed, however, said the country new Bank not enough given the size of the economy now needed as the existing 47 banks.

A number of BB Board members, is the relentless criticism, embarrassing, Ministry of finance have against movement, but the Government seems bent are more licenses, on the issuing bank.

BB said Board member of new age on Wednesday that Central Bank could not decide the session of the Board of Directors, on the granting of new licenses. It was decided to examine whether and how many new banking licenses should be granted, he added.

On the other hand, reporters an another Board Member, Bangladesh Economic Association Vice President Hannana Begum, that the BB directors at the meeting that more banks are actually needed. She, refused further comment.

A high BB official said that the Central Bank had carried out a study on the present scenario of the banking sector, the report of which other banks of the country allows contain anything about the reasoning of the institution.

' The report at the meeting said, the Board would have to decide whether it new banking licenses, or should not issue,' the official said.

Bangladesh Bank has received in recent years 82 applications for banking licenses. Of which about 20 applications have been submitted during the present Government.

The latter applicants include the Chairman of the Parliamentary Standing Committee for public accounting, Mohiuddin Khan Alamgir, legislator Sheikh Fazle Nur Tapos, and Bangladesh Federation of Chambers of Commerce and industry President AK Azad, in addition to a number of Pro-AL entrepreneur.

According to the BB, 47 banks are now operating in the country.

The previous AL Government has 13 new private banking licenses between 1999 and 2001.

But the the Bangladesh nationalist party led 4 Party Alliance Government of no new banking license, after exhibiting a strong objection by the Central Bank.

According to the rules which have emerging owner of a new Bank to a paid-up capital of at least 400 crore TK, a license to get.

AMA Muhith in his June budget speech in Parliament said that the Government the establishment of more private-sector banks 'Liquidity increase' would allow.

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| Source: newagebd.com