Finally, Bangladesh Bank is going to cancel the license of 9 financial institutions out of the bank, which are under scrutiny for irregularities, corruption. The formal announcement will come this month. What will be the money of the depositors even after the termination? The central bank itself is still looking for the answer to that question. Concerned people are urging the specific roadmap before finalizing the decision.
Bangladesh Bank is about to cancel and terminate the licenses of 9 financial institutions out of the bank.
Financial Figures Table
| Category | Amount (in crore taka) | Notes |
|---|---|---|
| Total defaulted loans (NPL / Defaulted Loan) | 27,000 | More than half belongs to the 9 institutions |
| Loans of 15 relatively better NBFIs | 49,643 | Identified as comparatively good |
| Defaulted loans among those 15 NBFIs | 3,627 | Relatively small portion |
| Loan default percentage (some weak NBFIs) | 90%+ | Over 90% loans defaulted in the weak institutions |
| Number of NBFIs to be closed | 9 | To undergo license cancellation and liquidation |
| Number of better NBFIs considered | 15 | Better-performing institutions |
Many people are walking day by day to raise their labor in non-bank financial institutions by depositing their labor. In the meantime, the discussion of the closure of the weak organization is fading their colorful dreams.
Their fear is that the Bangladesh Bank is truly on the way to shutting down 9 non-bank financial institutions. Because, like the bank, irregularities and corruption have been increasing in these establishments, the non-performing loan (NPL) or defaulted loan. At present, the 27,000 crore Taka, which is more than half of which is in the 99 financial institutions.
Meanwhile, Bangladesh Bank has taken the initial decision to close the Finance Company Act 2023 after reviewing everything from the companies. The formal announcement may come this month. However, the approval of the finance department and the return of the depositors is still underway to determine where the money will come from. Bangladesh Bank’s spokesman Arif Hossain Khan said,
I saw the 9th organization verified. The answer they gave did not seem acceptable to us. They have lost their ability to manage a business.
He added that the depositors are not very high in those companies. Then those who are, so that they are not harmed, Bangladesh Bank is watching.
As soon as the decision to close was made, the financial sector analysts advised the return of the depositors to return. Former Director General of BIBM (Bangladesh Institute of Bank Management) in this regard. Toufiq said Chowdhury said,
Since the new license is not advantageous in the banking market, those looters have been licensed as non-banks, and they are The bank also killed the money. It is better to close those who are not management. Bangladesh Bank does not mean spending money on these responsibilities again. Because, those who have more than 90%debt defaulters will turn around! It is impossible to turn around.
There are only 39,643 Crore Taka loans identified as relatively good in non-bank financial institutions in 120 Crush.
