Bangladesh Bank ‘closely supervising’ five Shariah-based banks after reports of suspicious lending


FE Team | Published: December 17, 2022 10:02:16 | Updated: December 25, 2022 18:02:51


Five Shariah-based banks under 'close watch' after reports of suspicious lending

Bangladesh Bank has launched fresh efforts to closely supervise five of the 10 Islamic banks in the country following allegations of irregularities in the disbursement of big loans, bdnews24.com reports.

The five Shariah-based banks will have to report to the central bank lending of more than Tk 10 million.   

Governor Abdur Rouf Talukder issued a set of instructions in a meeting on Thursday with all the observers and coordinators appointed to the banks in the country.

He instructed them also to ‘closely supervise’ the recent allegations over lending in some banks, central bank spokesman Mezbaul Haque said on Friday.

“Bangladesh Bank regularly collects information on lending from the Shariah-based banks. It can be done on a daily basis for the sake of supervision.”

Mezbaul declined to reveal the names of the five banks that will have to report to the central bank daily.

The High Court on Dec 4 ordered an investigation into allegations of irregularities in the disbursement of loans of hundreds of billions of taka from three banks – Islami Bank Bangladesh, Social Islami Bank and First Security Islami Bank. The central bank last week appointed observers to Islami Bank and First Security Islami Bank.

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