6 banks’ treasury chiefs to return with conditions

The Bangladesh Bank is permitting the treasury chiefs of six banks – accused of making abnormal profits from USD sales – to return to their posts on a few conditions, which include not getting involved in such practices again, and allocating 50 per cent of the ill-gotten profits to their respective CSR funds.

Bangladesh Bank spokesperson Serajul Islam told Business Post that the regulator had earlier ordered the removal of six banks’ treasury heads from their posts over charges of making abnormal profits by selling USD.

They later appealed to the Bangladesh Bank seeking withdrawal of the penalty. In response to their applications, the central bank gave them the opportunity to return their posts on certain conditions.

Among the conditions, 50 per cent of the abnormal profit made by the banks in selling dollars in May and June must be given to the CSR funds. Besides, guaranteeing that they will never do this kind of work again.

On 8 August, the central bank had found that Prime Bank, Brac Bank, Dutch-Bangla Bank, The City, South East and Standard Chartered Bank unusual gained by selling dollar. As, those bank’s treasury head was accused by the central bank.

The treasury department ensures the supply and demand of bank money and dollars. There was also an officer of the rank of Deputy Managing Director at the head of the Treasury Department.

On August 17, Bangladesh Bank sought an explanation from the managing directors (MDs) of these six domestic and foreign banks on the charge of destabilizing the market by making excessive profits in trading in US dollars.

In the first six months of this year, Prime Bank has made a profit of 504 per cent, BRAC Bank 417 per cent, Dutch-Bangla 403 per cent, City Bank 340 per cent by selling dollars compared to same period of last year.