The central bank issued the removal instruction on Tuesday
The Bangladesh Bank (BB) on Tuesday asked Mercantile Bank to remove its Director Shahid Reza from his post.
The central bank issued the removal instruction to the bank’s chairman and managing director on Tuesday, confirmed Md Serajul Islam, executive director and spokesperson of Bangladesh Bank on Wednesday.
“Shahid has been removed from Mercantile Bank’s board of directors as the allegations of loan irregularities against him were found to be true,” Islam said.
According to the Bangladesh Bank letter, this decision was taken following all the due procedures as per the provision 46 of the Bank Company Act 1991.
As a result of the central bank move, Shahid Reza will not be allowed to be involved in the management process of the bank or any other bank companies in the next two years.
The allegations brought against him include - breaching loan regulations and being associated with the scam of PK Halder.