BB scraps proposed People’s Bank approval

Bangladesh Bank on Thursday decided to cancel the Proposed People’s Bank approval as the latter failed to meet the central bank’s requirements within December last year.

The proposed bank had sought three more months to meet the BB requirements to get the licence but the central bank rejected the request, a senior BB official said.

Bangladesh Bank executive director and spokesperson Md Serajul Islam said the letter of intent of the proposed bank was valid till December 2021. “As they could not meet the conditions within the stipulated time, their application for extension of time has been rejected,” he told The Business Post. On the day, BB also turned down the application of National Bank for waiver of Tk 55 lakh in fine, which was imposed for credit card related irregularities.

The central bank slapped the fine in December last year for concealing loan related information of 11 persons, which was a gross violation of banking rules.

BB took the decision in its Thursdays board meeting presided over by Governor Fazle Kabir.

The BB board also rejected the proposal to reschedule the restructured loans under the BRPFD circular in 2015.

The central bank in 2015 introduced a new restructuring policy for big borrowers worth more than Tk 500 crore allowing for repayment over a 12-year period.