The Bangladesh Bank (BB) has limited control over state-owned banks as the government holds the authority to appoint chairmen, directors and chief executive officers of the banks.

As per the Bank Company Act, the Banking and Financial Institutions Division of the Finance Ministry is authorised to make those appointments.

The central bank holds the power to appoint the above mentioned posts of the private banks.

But in the cases of state-owned banks, it has limited power to exercise, reports banglanews24.com.

In consequence of recent monetary scam of Hallmark Group, experts opined that time had come to change the 46 (6) section of Bank Company Act.

Experts said the central bank can not take stern actions against the state-owned banks as the finance ministry holds power over them. Amending the Banking Company Act, the central bank should be empowered over all the state-owned and private banks.

Former Governor of BB Dr Salehuddin Thursday said, “The central bank holds the power to suspend the director, chairman or CEO of any commercial banks other than the state-owned ones.”

“I think BB should be empowered to control all the banks and financial institutions, amending the current Act,” he added.

“The finance ministry does not need the Banking and Financial Institutions Division anymore,” former BB governor said. “Once it was necessary, at present it is no longer needed.”

Krishi Bank Chairman Khandaker Ibrahim Khaled also expressed the same Wednesday last.

News: The Daily Sun/Bangladesh/04-Sep-12

Mohammad Abdullah, Managing Director of IFIC Bank is seen among the participants of a workshop in Dhaka Sunday.

IFIC Bank Limited organised an induction course for its newly-appointed Management Trainees (MTs) of the 13th batch.

The Training Institute of the Bank organised the training course in Dhaka Sunday, said a press release. A total of 43 MTs took part in the training course. Mohammad Abdullah, Managing Director of the Bank, welcomed the new comers.

Mati-Ul Hasan, Deputy Managing Director (Business), Wakar Hasan, Deputy Managing Director (Operations), Alkona K Chowdhuri and Senior Executive Vice President of the Bank attended the workshop.

News: The Daily Sun/Bangladesh/04-Sep-12

K S Tabrez, Managing Director of DBBL, presides over a workshop of the Bank in Dhaka recently.

Dutch-Bangla Bank Limited arranged a three-day training course on "Foreign Trade" for its officias.

The Training Institute (TI) of the DBBL organised the training course at head office of the Bank in Dhaka recently, said a press release.

News: The Daily Sun/Bangladesh/04-Sep-12

 CHITTAGONG: EXIM Bank will set up its Chittagong regional head office at the World Trade Centre constructed by the Chittagong Chamber of Commerce and Industry (CCCI).

It signed a lease agreement with the CCCI Monday to set up its regional office at World Trade Centre in the port city.

Addressing the lease contract signing ceremony, CCCI President Murshed Murad Ibrahim said that WTC will have significant impact on international trade and commerce with more reputed firms and companies setting up their offices there.

Osman Gani Chowdhury, Secretary of the CCCI and Mohammad Shahidullah, Executive Vice President and Relationship Manager of EXIM Bank’s Agrabad branch signed the contract on behalf of the respective organisations.

CCCI Vice President Mohammad Nurun Newaz Salim, Directors Mohammad Ahid Siraj Chowdhury Swapan, Sheikh Mahfuz Hamid, EXIM Bank Senior Assistant Vice President also Operations Manager Mohammad Shahjahan Patwary, Assistant Vice President Enayet Karim Golzar were also present among others.

News: The Daily Sun/Bangladesh/04-Sep-12

Garment exporters yesterday demanded a quick probe into the corruption allegations against Sonali Bank officials and the Hall-mark Group authorities.

In a written statement, leaders of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) also expressed concern that the scandal can seriously hamper the process of borrowing from banks by entrepreneurs in the industrial sector.

“The authorised dealer (AD) branches of the banks are showing apathy to the cases of local bill purchases due to the scandalous irregularities by corrupt bank officials and vested quarters among the business community,” said the statement yesterday.

The AD branches are often unduly referring the local bill purchases to the head office for further approval, or showing excuses, referring to the central bank, they said.

The alleged loan scam of Hall-mark Group, an apparel maker, would hamper new exploration initiative by real entrepreneurs as the scam could damage the brand image of the country, said the exporters.

The BGMEA leaders demand strict legal actions against those involved in the financial irregularities, the statement added.

An investigation by the Bangladesh Bank found that the Ruposhi Bangla Hotel branch of Sonali Bank is responsible for illegally disbursing Tk 3,547 crore loans to Hall-mark Group and five other companies between 2010 and May this year.

The investigation also revealed that Hall-mark Group alone took Tk 2,686 crore out of the total amount of loans.

News: The Daily Star/Bangladesh/04-Sep-12