BB approves 6 more new banks

The board of directors of the Bangladesh Bank on Sunday approved six new private commercial banks, mostly sponsored by political bigwigs.

The approved commercial banks are Union Bank Limited, Modhumati Bank Limited, Farmers' Bank Limited, Meghna Bank Limited, South Bangla Agriculture and Commerce Bank and Midland Bank Limited.

The approval came from a meeting of the central bank board held at its conference hall with governor Dr Atiur Rahman in the chair.

Former president and Jatiya Party chairman HM Ershad is one of the major shareholders of Union Bank Ltd while Awami League senior leader Dr Mohiuddin Khan Alamgir is involved with Farmers' Bank Ltd.

Awami League MP and Prime Minister Sheikh Hasina’s nephew Barrister Fazle Noor Taposh is one of the major shareholders of Modhumati Bank Ltd, while Chairman of South Bangla Agriculture and Commerce Bank is SM Amjad Hossain. Prime Minister Sheikh Hasina’s income tax adviser Moniruzzaman Khan Khandker is involved with Midland Bank Ltd.

Earlier, at a marathon meeting on April 4, the central bank gave the go-ahead signal to another three banks sponsored by non-resident Bangladeshis (NRBs). Those are NRB Bank Limited (Nizam Chowdhury, USA), NRB Bank (Iqbal Ahmed, UK) and NRB Commercial Bank Limited (Farasat Ali (USA).

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