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BASIC Bank to regain financial health: Atiur

  • Published at 05:31 pm August 25th, 2013
BASIC Bank to regain financial health: Atiur

Bangladesh Bank Governor Atiur Rahman yesterday expressed the hope that BASIC Bank would soon recover its financial health under a memorandum of understanding signed recently to bring the bank under the central bank’s direct monitoring.

“The bank will recover its previous status soon,” he told a meeting with the chief executives of commercial banks at Bangladesh Bank headquarters in Dhaka. The meeting discussed about the recent financial scams in the banking sector of the country.

Atiur said Bangladesh Bank recently strengthened its surveillance on risk management and internal control system of the banks. As a result, classified loans of the banks reduced in June.

Net classified loans decreased significantly in the last quarter and provisioning deficit also declined while financial foundation became strong, he said. Banks have overcome the provision and capital shortfalls as the government also came forward to meet the capital deficit of the state-owned banks.

The governor warned bankers, specially the managing directors of state-owned banks, to stay away from the credit scandals.

“To prevent the scandals in the banking sector, Bangladesh Bank increased its monitoring. As a result provisioning shortfall declined to Tk20bn from Tk90bn in the last quarter,’’ said Bangladesh Bank DMD SK Sur Chowdhury.

The government is set to inject Tk50bn into four state-owned commercial banks to make up for the significant capital shortfall.