4. The Central Bank spared City Bank under strict conditions

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4. The Central Bank spared City Bank under strict conditions

The Central Bank has reprimanded the managing directors (MDs) and managing directors of six banks for allegedly making excessive profits on dollars. One of them was the private City Bank Limited. The Bangladesh Bank has ordered the removal of the head of the bank’s treasury department from his post. By relaxing the order, the bank was exonerated from the charges against it by meeting four conditions. On Thursday, September 22, a related instruction was sent to the bank’s managing director, Masrur Arefin.

The first condition of the central bank given to Citibank stipulates that half of the profits made last May and June from foreign trade transactions (cash function) must be kept separately in the CSR fund. After saving the money, the remaining money can be transferred to the income sector of the bank.

The second condition stipulates that the necessary instructions will be issued later regarding the use of the money from the CSR fund (half of the profits of last May and June).

In the third condition, it is said that in the future, in the conduct of banking activities, including foreign exchange transactions, compliance with all rules and regulations related to banking operations should be ensured in the interest of the ‘State. As a fourth condition, it has been stated that activities likely to destabilize the entire foreign exchange market, including the foreign exchange market, should be avoided.

According to the instructions of Bangladesh Bank, any banking company established under Section 31 of the Banking Companies Act 1991 can make profit by following relevant laws and existing banking policies, ethics and instructions given by Bangladesh Bank from time to time. However, it is by no means desirable to make excessive profits unethically through negative banking activities by damaging the overall economy of the country.

The Bangladesh Bank also said that the complaints observed during the inspection of the Foreign Exchange Inspection Department, the response sent by the bank has been reviewed and analyzed by the Foreign Exchange Inspection Department of the Bangladesh Bank. Bangladesh Bank declares that since this is the first time that such excessive profit has come to the attention of Bangladesh Bank, therefore, considering the overall situation, the above-mentioned four conditions are exempt from the charges imposed in pursuant to Article 46 of the Law on Banking Companies. , 1991. In addition, the complaint filed against the bank was considered settled. At the same time, Bangladesh Bank’s foreign exchange policy department eased instructions to sack the head of City Bank’s treasury department. Bangladesh Bank claims that City Bank authorities may reinstate him (Head of Treasury Department) to his previous position at their own discretion.

Earlier, at the beginning of last August, it was alleged that some banks made extra profits by taking advantage of the dollar crisis in the country’s market. At this time, the heads of treasury at six banks, including City Bank, were removed from their posts because there was evidence of a rate increase by holding additional dollars.



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