The country’s banking sector regulator Bangladesh Bank is trying to solve the money crisis by guaranteeing distressed banks. As a part of this, yesterday they arranged to lend 945 crore taka to four banks under special arrangements. Especially the bank sector mafia and fascist Sheikh Hasina’s main financial provider Saiful Alam Masood alias S Alam, Nasa Group leader and Exim Bank ex-chairman Nazrul Islam Majumdar and Beximco Group leader Salman F Rahman’s occupants have intensified the cash crisis of the banks. No money can be withdrawn from ATM booths of these banks. Except only Islami Bank, other banks are not able to pay much money to the customers even from the branches. In such a situation, Bangladesh Bank has come forward to help the new board formed by dissolving the board of these banks.Using the state apparatus of the autocratic Awami League government, the ownership of eight banks was given overnight to the mafia-turned-S Alam Group. One of the best banks in Asia was Bangladesh Islami Bank. In 2017, through an intelligence agency, the bank’s chairman and MD were picked up and forced to hand over their shares to S Alam. Similarly, Social Islami Bank, Global Islami Bank and Union Bank were taken over. They also took ownership of First Security Islami Bank, Al-Arafah Islami Bank. Later they took control of Bangladesh Commerce Bank and National Bank. In the last seven years, S Alam took out about two lakh crore taka from these banks anonymously. As a result, the situation of six of these banks has reached such a level that they do not even have cash to carry out transactions in many of their branches. The branch officers are fleeing under the pressure of the depositors.
Meanwhile, Exim Bank was occupied by Nazrul Islam Majumder, head of NASA Group, one of dictator Sheikh Hasina’s financial providers and confidants. He held the post of Chairman of Exim Bank for 17 years and was also Chairman of Bangladesh Association of Banks (BAB), an organization of entrepreneurs and directors of private banks. Nasa Group has taken a huge amount of loan from Exim Bank. A director of the bank’s new board told Naya Diganta yesterday that the internal situation of Exim Bank is very fragile. For so long Majumdar’s influence had managed the Khatiki and the Central Bank to show less defaulted loans. But the actual defaulted loans are more than 50 percent.After the escape of Sheikh Hasina in the student uprising on August 5, the central bank dissolved and reorganized the board of directors of the occupied banks. Out of this, the boards of 11 banks including eight under the control of S Alam have been restructured. The other three banks whose board has been reconstituted are IFIC, UCB and EXIM Bank. Among them, former prime minister Sheikh Hasina’s private industry and investment advisor Salman F Rahman was in possession of IFIC Bank, former land minister Saifuzzaman Chowdhury and his family controlled United Commercial Bank.
Bangladesh Bank has taken initiatives to overcome the liquidity crisis of these banks and restore their capacity. Those weak banks are being provided with cash through banks which have excess funds under guarantee from Bangladesh Bank. As a part of this, some banks of the country are providing financial assistance as a loan of Tk 945 crore to four commercial banks yesterday. Banks receiving financial assistance are First Security Islami Bank, Social Islami Bank, Global Islami Bank and National Bank. Husne Ara Shikha, Executive Director and Spokesperson of Bangladesh Bank confirmed this information yesterday.
Bangladesh Bank guarantee means that if any bank fails to repay the loan due to any reason, the central bank will give that money. Currently, the central bank is arranging loans from other banks instead of giving money directly. That is, market money will go from one bank to another bank. As a result, there will be no additional impact on inflation.
Husne Ara Shikha, the spokesperson of Bangladesh Bank, said that five banks have provided financial assistance to four banks as loans against the guarantee of the central bank. Of the 300 crore given to First Security Islami Bank, City Bank gave 200 crores, Dutch-Bangla Bank 50 crores and Mutual Trust Bank 50 crores. Social Islami Bank has also received a loan of Tk 350 crore. City Bank has lent the bank 300 crores and Mutual Trust Bank 50 crores. Eastern Bank gave 25 crores to Global Islami Bank. National Bank has received financial assistance of Tk 270 crore. Bengal Commerce Bank has lent Tk 20 crore, Mutual Trust Tk 50 crore and City Bank Tk 200 crore. Among the banks, City Bank has lent the most Tk 700 crore.
Earlier last week, against the guarantee of Bangladesh Bank, the Governor met with the Managing Director (MD) of the 10th Bank and their representatives to lend to the weak banks. Ahsan H. Mansoor. The banks are: State-owned Sonali Bank, Private sector BRAC, Eastern, City, Shahjalal Islami, Mutual Trust, Pubali, Dhaka, Dutch-Bangla and Bank Asia. At the end of the meeting, it was informed that if the weak banks want to return the loan money, Bangladesh Bank will return it to the strong banks within three days. No bank can take any money for lending. Bangladesh Bank will decide how much liquidity assistance will be given to a bank. Apart from this, the interest rate of the loan will be determined based on the agreement between the two banks. 10 banks have agreed to lend to weak banks under these conditions