Bangladesh Bank has appointed observer to Farmers Bank, a new generation bank, against the backdrop of its irregularities in loan disbursement and lack of corporate governance.
A letter was sent yesterday to the bank after having ANM Abul Kashem, general manager of Foreign Exchange Investment Department of Bangladesh Bank, appointed as observer to the new bank.
Of the new nine banks that obtained licence in 2013, Farmers Bank got an observer for the first time for being closely watched.
The central bank investigation into the new generation bank found irregularities in the latter’s loan disbursement of Tk400 crore.
Top managers of the bank were found involved with the loan anomalies, thus raising concern for Bangladesh Bank.
The investigation also observed lack of good governance into the bank.
Under the circumstances, the central bank appointed an observer to keep a closer eye on the bank.
Earlier in November, it appointed observer in four state-owned banks, including Sonali, Janata, Agrani and Rupali.
Farmers Bank started its journey in April 2013.