DhakaTribune
Tuesday January 16, 2018 05:17 PM

Central bank orders removal of Farmers Bank MD AKM Shameem

  • Published at 05:35 PM November 27, 2017
  • Last updated at 05:36 PM November 27, 2017
Central bank orders removal of Farmers Bank MD AKM Shameem
File photo of Farmers Bank Managing Director AKM ShameemCollected

The central bank also asked the Farmers Bank authorities to explain why Shameem should not be removed from office within 7 days.

The Bangladesh Bank has instructed the management of Farmers Bank Ltd (FBL) to remove its incumbent Managing Director AKM Shameem.

In the letter sent on Sunday, the central bank also asked the Farmers Bank authorities to explain, under Section 46 of the Bank Company Act, why Shameem should not be removed from office within seven days.

FBL’s finances started deteriorating soon after it was established in 2013. In January last year, the central bank appointed an observer in the bank’s board to ensure it was adhering to the Bank Company Act while disbursing loans and improving risk management and internal control.


Also Read- Farmers Bank tagged ‘risky’ for financial sector


A national daily reported in 2015 that the Bangladesh Bank had conducted special inspections at three FBL branches and found gross violation of banking rules in disbursing loans of about Tk400 crore.

On October 29 this year, the Parliamentary Standing Committee on the Ministry of Finance expressed serious concerns over the deteriorating condition of the bank.

According to a central bank report submitted to the committee, 13 counts of irregularities were found, including disbursement of loans to non-existent companies.


Also Read- Does Bangladesh need more banks?


The report also revealed the fact that the bank disbursed loans to its own directors as well as those of other banks, violating the credit discipline.

Right after this news broke, state-owned Bangladesh Telecommunications Company Ltd (BTCL) tried to pull out its fund from the bank, but only to discover that their cheques, amounting to Tk35.44 crore, had bounced twice.

Related Stories

Leave a Comment

 Please read our Comment Policy before posting



Latest News

Featured Videos

Subscribe Ad_330:120

Most Read

Send this to a friend