Farmers Bank apologises to BB for loan irregularities
The Farmer's Bank, plagued by allegations of loan irregularities, not following Bangladesh Bank's rulings. It had marked Tk 38.26 crore to six financial institutions as investment. The infringement occurred when the bank decided to trump the central bank's radar by branding it investment, since they failed to bring down the credit-deposit ratio by a stipulated time frame. The rate was to be brought down to between 70-75%, to check aggressive lending.
However, the Farmer's Bank has since the allegation, corrected the proper accounting procedures and releasing a letter to the Central Bank to notify its act of concordance. It pleaded to be spared the Tk10 lakh fine to be paid to Bangladesh Bank. It has considered the plea upon the request of the High Court to consider the application.
Previously, the Farmer's Bank filed a writ against this allegation to the High Court which sparked significant criticism.
BB waives Farmers Bank’s penalty
The Farmer's Bank, plagued by allegations of loan irregularities, not following Bangladesh Bank's rulings. It had marked Tk 38.26 crore to six financial institutions as investment. The infringement occurred when the bank decided to trump the central bank's radar by branding it investment, since they failed to bring down the credit-deposit ratio by a stipulated time frame. The rate was to be brought down to between 70-75%, to check aggressive lending.
However, the Farmer's Bank has since the allegation, corrected the proper accounting procedures and releasing a letter to the Central Bank to notify its act of concordance. It pleaded to be spared the Tk10 lakh fine to be paid to Bangladesh Bank. It has considered the plea upon the request of the High Court to consider the application.
Previously, the Farmer's Bank filed a writ against this allegation to the High Court which sparked significant criticism.
BB waives Farmers Bank’s penalty
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