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Economy

BB removes Farmers Bank MD, bars him from joining any bank in 3 years

19 December 2017,Tuesday, 16:07



Bangladesh Bank on Tuesday removed AKM Shamim, the managing director of The Farmers Bank, from his post.

Confirming the news over the firing of the Farmers Bank top boss, the central bank’s executive director and spokesman Suvanker Saha said an embargo was imposed on Shamim that he would not be eligible to join any post of management of his bank or any other bank of the country for next three years.     

“We have informed Shamim about the embargo through the letter from BB,” Saha told UNB. 

Shamim received the removal letter from Bangladesh Bank on Tuesday morning. In normal course, Shamim’s job tenure was supposed to be expired on December 28.

The Farmers Bank, a new generation bank which obtained banking license as per the government’s political decision and started operation in June 3, 2013, has been experiencing liquidity crisis.

Many depositors are not being able to withdraw their deposited money while the central bank brought allegation against the bank for issuing big loans violating the banking law.  

Earlier, the BB served a show-cause notice on November 26 mentioning Shamim’s violation of banking law and rules in distribution of loans and also for not maintaining the Cash Reserve Ratio (CRR) and Statutory Reserve Requirements (SLR) as per compliance of the banking rules.

Shamim was given 7 days’ time for replying the show-cause notice and also received his statements through a hearing on December 13 where he failed to give any satisfactory clarification on the allegations raised against him.  

Earlier The Farmers Bank chairman Mohiuddin Khan Alamgir, a former planning minister and also present member of parliament (MP) of the ruling Awami League for a constituency in Chandpur, had to resign from the post on November 27 for the same reasons.

Some other members of the board of the Bank also had to relinquish their positions on the same ground and the board of The Farmers Bank was reconstituted in compliance with the Bangladesh Bank instructions.

 

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