Bangladesh Bank on Sunday warned the non-bank financial institutions that it would take strict action against them if they were found involved in corruption. The warning came from a quarterly meeting between the central bank and the NBFIs at the central bank’s headquarters in the capital. BB governor Atiur Rahman presided over the meeting while senior officials of the central bank and the managing directors of the NBFIs were present. Atiur said, ‘The central bank has taken a strict stance against corruption and anomalies. The BB has already appointed observers to two NBFIs due to their involvement in corruption.’ The directors of the NBFIs were involved in the corruption, which is not acceptable, he said. The central bank will arrange a meeting with the owners of the NBFIs in the coming days to ensure corporate governance in the entities. He said that the central bank had recently unearthed that a former chairman of a NBFIs had taken more than Tk 700 crore in loan from his own organisation violating rules and regulations. The former chairman’s wife and daughters were involved in the corruption, he said. The organisation also showed its classified loans as unclassified ones and many of its loans were not submitted to the CIB, he said. The central bank has recently removed the director from the NBFI to ensure good governance in the entity. Atiur said, ‘The central bank has already framed policy to save the managing directors of the NBFIs. So, the MDs should play strong role in checking corruption and anomalies in their respective NBFIs.’ The BB has recently prepared risk management guidelines for the NBFIs to identify their risks, he said. The BB will issue the guidelines in the shortest possible time. The central bank has recently approved the Bangladesh Infrastructure Finance Fund Ltd to issue commercial papers worth Tk 40 crore. The BB is now working to prepare guidelines for issuing the commercial paper as the instrument is now gradually becoming popular in the country. Such type of investment may bring new dimension to the business of the NBFIs, Atiur said.