Online Report
Bangladesh Bank Governor Ahsan H Mansur said the central bank would not be lenient while taking measures to discipline the banking sector.
He said this at a virtual press conference from Dubai when his attention was drawn to the matter that 23 banks could not publish their financial statements for 2024 as they were awaiting approval of the central bank.
The banks have already passed the April 30 deadline as the Bank Company Act 1991 makes it obligatory for the financial institutions to finalise annual statements within four months after the end of a year. The listed banks are supposed to declare dividends within the same timeframe, subject to approval of the central bank.
However, the BB in March tightened the dividend policy, saying the banks that have taken deferrals to meet provisioning requirements will not be able to pay dividends to shareholders for 2024 onwards.
Banks have requested for additional time from the BB to meet the provision requirement and sought approval of their financial statements.
At the press briefing, the governor was asked whether officials of the central bank could approve the financial statements when he was away dealing with the IMF over the release of the final two tranches of funds to Bangladesh.
Over the uncertainty that bank investors are facing, Mr Mansur said investors themselves should protect their interest through prudent investments.
The BB will take measures to protect the interest of depositors, he said, adding that, “The central bank is not for investors.
“Those, who destroyed the banking sector, will be losers and there is no sympathy towards them while taking any decision to streamline the banking sector.
“At the end of the day, everything will be good for all including shareholders of listed banks.
“It may not be good for sponsor-director S Alam. Why will we show sympathy to him as he destroyed the banking sector?” Mansur said, adding that regulatory actions also might not be good for Saifuzzaman Chowdhury, former land minister and ex-chairman of United Commercial Bank.
The central bank applied its rules and regulations and in some cases banks are facing challenges to comply with BB directives.
Earlier, some banks had sought one-month time to finalise their statements, considering that decisions over provision and dividend were still pending.
Mr Mansur said the BB would give the time extension and lenders will have to ensure compliance within this time.
He also said banks would see merger and acquisition in the days to come.
In the acquisition of any bank, the central bank would take into account matters involving shareholders of listed banks. The securities regulator will be informed of acquisition of banks.
When it comes to investors, they are of two types, BB governor said. Sponsor-directors must be responsible and they would remain responsible for the collapse of any bank.
“Unfortunately, small investors injected money in bank stocks, being well aware of the situation of the companies,” added Mr Mansur.