The Bangladesh Bank on Tuesday reconstituted the boards of two banks and decided to restructure two others -- all controlled by S Alam Group -- by next week to free them from the control of the Chittagong-based conglomerate.
The central bank also assured businesses that it will lift the restrictions on opening letters of credit (LCs) imposed on these banks.
In a separate development, the newly reconstituted board of Islami Bank Bangladesh has decided to re-audit all loans disbursed since S Alam Group took control of the bank.
The central bank appointed new five-member boards of directors for both Global Islami Bank and Union Bank.
Former Meghna Bank Managing Director Nurul Amin will lead the board for Global Islami Bank, while former Islami Bank managing director Fariduddin Ahmed will chair the board for Union Bank.
According to the Bangladesh Bank, the boards of First Security Islami Bank and Bangladesh Commerce Bank will be restructured in the next one week.
The other board members of Global Islami Bank are: Bangladesh Bank's former executive director Jamal Mollah; former Islami Bank deputy managing director Nurul Islam Khalifa; Dhaka University's International Business Department Professor Abu Hena Reza Hassan; and Chartered accountant Mahmud Hossain.
The other board members of Union Bank are Bangladesh Bank's former executive director Humayun Kabir; former RAKUB deputy managing director Saiful Islam; Dhaka University's Department of Banking and Insurance Professor Shahidul Islam Jahid; and Chartered accountant Sheikh Jahidul Islam.
All of the members of the two banks have been appointed as independent directors, according to separate circulars issued by the central bank yesterday.
A week ago, the central bank halted LC operations at six banks controlled by S Alam Group due to widespread corruption and irregularities, suspending the import and export activities of businesses associated with these banks.