The Bangladesh Bank (BB) has identified 11 commercial banks for responsible in stock markers volatility that led market to historic fall.

Three separate teams of the central bank have already found involve-ment of these banks after primary investigation, a senior official of the BB said.

“One of the commercial banks made profit of Tk 10.40 billion during last year. Of these amount of profit, Tk 4.40 billion came during the last month by investing in share market,” he said without disclosing the name of the bank.

He also said allegations have been found that bank officials provided false loan to fake clients for investment in the share markets.

The BB also investigated allocation of Tk 24 billion industrial loans by a bank to its clients last year, an official of BB said.

“I am surprised how the industrial loan was invested in the industrial sector when gas and electricity connections were not given to that unit,” he said expressing his dissatisfaction.

He also said some commercial banks on an average borrowed Tk 70 billion during share market debacle and invested in share market illegally.

Even some banks have invested over 10 percent of their capital violating BB guidelines, he said.

Source: Daily Sun/Bangladesh/14 Jan 2011