The Banking Division of the finance ministry has advised Bangladesh Bank to take necessary actions against four multi-purpose cooperative societies, which are allegedly running banking activities illegally.

In the letter the Division also feared that the current liquidity crisis in the banks might have been caused due to illegal activities of multi-purpose cooperative societies and multi-level marketing companies, a senior Banking Division official said.

The alleged four multi-purpose cooperative societies are: Maxism Group of Multi-Purpose Cooperative Limited, Kapotaksha Multi-Purpose Cooperative, Kingshuk Multi-Purpose Cooperative and Ehasan Society Bangladesh.

The letter, sent to BB Governor Atiur Rahman last week, was issued on the basis of allegation by one M Rokanzzam, a resident of Jessore.

These cooperatives have already opened outlets in district and upzila levels and have been involved in giving loans to the people at high interest rates.

They also have purchased lands and flats to run real estate business.

As per the letter, the four cooperatives got registered with the Joint Stock Companies and Firms after they had failed to collect licenses from the Micro-Credit Regularity Authority.

Shafiqur Rahman Patwari, secretary to the Banking Division, told daily sun that the government would take all necessary steps to stop illegal banking activities of multi-purpose cooperatives and MLM companies to improve liquidity situation of the banking sector. A total of 2,000 multi-purpose cooperatives are operating across the country now, said the letter.

News: Daily Sun/ Bangladesh/ 25-April-2012