Bangladesh Bank gave final approval to Bengal Commercial Bank Limited as it has fulfilled all the regulatory requirements, including raising Tk 5 billion in paid-up capital within 2 years. The board of directors of Bangladesh Bank took the decision at its meeting on Sunday. BB governor Fazle Kabir chaired the meeting.
Besides, the central bank decided to issue a letter of intent to the proposed Peoples Bank Ltd, asking it to comply with the existing rules and regulations before it gets the final go-ahead. The central bank usually grants six months to fulfil the conditions of such a letter, a BB senior official said.
BB officials said, “The approval of the central bank came amid opposition from different quarters for not to issue licence to new banks in the existing distressed situation in the country’s banking sector.” However, the approval for another bank, Citizens Bank, was put on hold as it was yet to meet the conditions for getting licence, they said adding that, the private lender will have to apply again to the board seeking the final approval after fulfilling the conditions.
Sources said some influential ruling party men pushed for setting up the new bank. After Awami League formed the government in 2009, nine banks were given the green light on 'political consideration' despite opposition from different quarters. Shimanto Bank Limited, owned by BGB Welfare Trust, was offered the licence in 2016.
Two years later, the BB board gave the final approval to the Community Bank. Currently, there are 59 banks in Bangladesh, of which 41 are local private banks, nine are foreign, and nine are state-owned lenders. The board also decided, in principle, to allow two conventional private banks-Standard Bank and NRB Global Bank-to get transformed into Islamic lenders after complying with the existing rules and regulations, according to people familiar with the development. The NRB Global Bank Ltd has already proposed the BB to change its name as Global Islami Bank Ltd.