It was part of some regulatory measures taken in response to the central bank's cautions against the liquidity crisis the FBL has been facing for quite some time
Former home minister Dr Mohiuddin Khan Alamgir has resigned his post as chairman of the Farmers Bank Limited (FBL) board of directors and executive committee.
Another member of the board of directors – Mahabubul Haque Chisti – has also resigned his post as chairman of the FBL audit committee.
The departures from the board were confirmed through a Bangladesh Bank press release on Monday.
The press release reads the resignations were part of regulatory measures taken in response to the central bank’s caution regarding the liquidity crisis FBL has been facing for quite some time.
“It has been observed that the crisis is deepening, as a number of depositors are trying to withdraw money from the bank. As the matter came to the notice of Bangladesh Bank, necessary regulatory steps are being taken,” the press release read.
It also said that steps had been taken against FBL’s MD, for failing to fulfill his responsibilities and violating the guidelines of Bangladesh Bank.
Earlier on Sunday, the central bank sent a letter to FBL, instructing the management of the private bank to remove its incumbent Managing Director AKM Shameem.
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.