• Tigers need to build on Asia Cup success
  • Rhetoric alone not enough to protect environment
  • A prelude to a gathering storm in Middle East?
  • Fight for rule of law
  • Affordable drugs
  • Attorney general represents World Bank in High Court
  • Razzak directs play on Independence War
  • Iran and the IAEA
  • Purnima wins national award
  • EU slaps sanctions on Assad’s wife
  • Afghan relatives demand local trial for US shooter
  • No cemetery, crematorium for city Christians, Buddhists
  • Govt plans tourism univ
  • Tigers win million hearts
  • Little respite as Dhaka Premier League looms
  • BB board may approve new banks on Mar 27
  • Prices of chicken, egg remain high in capital
  • People start paying for ‘wrong’ govt policy
  • Industrialists fear hampered production
  • Courier services need to seek fresh licences in 3 months
  • RAJUK violates DAP
  • Man killed in land clash in Kurigram
  • Local printers to observe work abstention on March 27
Print Friendly and PDF

BB board may approve new banks on Mar 27

Staff Correspondent

Some new banks are likely to be approved on March 27 by the board of directors of Bangladesh Bank amid intensified lobbying by aspirants sponsors backed by the ruling party, sources in the central bank said.
The BB board is going to meet for the second time in a month in connection with the setting up of the new banks.
Earlier on March 15, the board of directors of the central bank held a meeting to scrutinise the applications of the sponsors of the proposed banks.
BB sources told New Age that the board of directors of the central bank usually holds one meeting each month. But the next week’s board meeting has been scheduled amid acute pressure from the government to approve the new banks.
At least three committees of the central bank have to conduct the scrutiny process before approving the new commercial banks and it needs minimum six months to complete the tasks, one of the sources said.
But these committees are going to submit their final report within four months due to political pressure from government, they said.
The central bank on September 27, 2011 invited applications from sponsors interested in setting up new private commercial banks, asking them to submit their proposals with a non-refundable bank draft of Tk 10 lakh by November 30.
BB received 37 applications for setting up new banks by November 30, the deadline for submitting the applications.
The BB sources said that the primary scrutiny committee had selected 16 applications for new banks, but the technical committee eventually shortened the list.
The evaluation committee led by Md Abul Quasem, deputy governor of BB, would complete the final scrutiny process of the new bank, he said.
He said that seven to nine commercial banks might get licence to operate banking activities in the country.
Applicants for the new banks include Jatiya Party chief HM Ershad and Awami League lawmaker and Prime Minister Sheikh Hasina’s nephew Fazle Noor Taposh.
The BB Board is also expected to approve two or three banks by Non-Resident Bangladeshis (NRBs), said the sources in BB.
Although the central bank had initially wanted to give approval to one NRB bank, two more NRB banks might be given permission because of political pressure from the ruling party, it was learnt.
The three applicants for licenses of NRB banks had the blessings from the ruling Awami League, sources said.
The new NRB banks would have been approved in previous board meeting, but some complexities erupted over the requirement of paid-up capital. 
BB had earlier fixed a paid-up capital of Tk 200 crore for the new NRB banks. But according to the revised Bank Companies Act, a new bank should have Tk 400 crore as paid-up capital.
SK Sur Chowdhury, deputy governor of BB, earlier said that the NRB banks might get permission finally from the next BB board meeting if they could meet the requirement of paid-up capital of Tk 400 crore.

Reader’s Comment

comments powered by Disqus

BB board may approve new banks on Mar 27

Some new banks are likely to be approved on March 27 by the board of directors of Bangladesh Bank amid intensified lobbying by aspirants sponsors backed by the ruling party, sources in the central bank said. Full story

Prices of chicken, egg remain high in capital

A fruit vendor sells water-melon to customers in a city market on Friday. Juicy summer fruits including water-melon have started arriving in the city markets, but their prices are still high. — Focusbangla photo
Prices of chicken still remained high while that of onion and garlic decreased in the city’s kitchen markets last week. The price of egg and edible oil that had gone up in the middle of the week also remained high in the city markets. Full story

India IT cos seek image makeover

As the US presidential election ramps up the rhetoric against offshoring jobs, India’s flagship software services providers are seeking an image makeover. For Wipro, Infosys and others, multi-billion dollar outsourcing giants with... Full story

Four more border markets agreed

India and Bangladesh have agreed to set up four more border markets along Tripura border with Bangladesh to boost bilateral trade, a senior minister of Tripura said on Friday. ‘Bangladesh government has agreed to India’s proposal to set up... Full story

Bank regulators agree more leeway on liquidity rule

Global regulators are expected to allow banks greater flexibility to meet new short-term liquidity rules, according to sources with knowledge of the discussions. The Basel Committee on Banking Supervision met on Tuesday and Wednesday... Full story

UK consumer confidence dips

UK consumer morale eased last month from January’s five-month high as shoppers grew more worried about their jobs, a survey from building society Nationwide showed on Friday. The figures chime with February retail sales data released on... Full story

China, Indonesia sign $17b deals

China and Indonesia signed deals worth at least $17 billion Friday in fields such as hydroelectricity and mining during a visit to Beijing by the Southeast Asian nation’s leader, state media said. Full story

Canada, Thailand plan free trade talks

Canada and Thailand agreed on Friday to hold discussions on a free trade agreement between the two countries, during a visit to the kingdom by Prime Minister Stephen Harper, officials said. Full story

Asian shares hit as global growth fears return

Asian markets mostly fell on Friday after worse-than-expected economic data from China and Europe stoked fresh concerns over global growth, bringing an end to a recent spell of optimism. Full story

Dollar, euro firm in Asia

The dollar and euro posted modest gains against the yen Friday with risk appetite picking up despite weak Chinese and European economic data fuelling concerns over the global economy. Full story

China think-tanks shake investor confidence

When two of China’s most influential government policy think-tanks highlight the risk that growth will weaken on the same day that a widely-watched indicator fails to signal an expected upturn, investors are naturally nervous. Full story

BoE urges banks to raise more capital soon

Banks need to raise new capital as soon as they can, because the global financial system remains fragile despite action by the European Central Bank to shore up the eurozone, the Bank of England’s new risk watchdog said on Friday. Full story

ECB chief opposes Greek eurozone exit

European Central Bank president Mario Draghi said he was against any suggestion of Greece leaving the eurozone because that would not solve the country’s woes and would lead to higher inflation as well as instability in Greece. Full story

Jewellers’ strike dents festival sales in India

The salesman displays gold bangles to a customer at a jewellery showroom in Chennai recently.  — Reuters photo
Jewellery sellers in India lost out on the opportunity to make large sales on Gudi Padwa festival, considered to be an auspicious day to buy gold, due to a strike called to protest duty raises in last week’s budget. Full story

Fed officials clash on view of economy

The gap between the Federal Reserve’s dovish core and its hawkish wing was on display on Thursday as a top Fed official said the economy is in better shape even as Fed chairman Ben Bernanke focused on a source of weakness. Full story

Greece seeks $10.7b in debt swap wrap

Greece sought on Friday to include debt of about 8.1 billion euros ($10.7 billion) in the final phase of a historic bond swap which has already erased nearly a third of its debt mountain. Full story

Myanmar, Laos eye trade boost with bridge

Laos and Myanmar have agreed to build the first bridge across the Mekong river between the two countries to boost trade and investment, Laotian state media reported Friday. Full story
  • Online Poll

    Do you think that the government has successfully brought back normalcy in public life after the January 5 elections?

    • Yes
    • No
    • No comment
    Ajax Loader