A party taking loan heavily from market, says Muhith

Finance minister reiterates requirement of more banks

Staff Correspondent | Published: 00:05, Dec 13,2017 | Updated: 23:54, Dec 12,2017

 
 

Finance minister AMA Muhith on Tuesday said that a party was borrowing heavily from the market and buying banks.
The party was doing so to get benefit from the buying spree, he said, while responding to a query about dramatic changes in the executive board of a private commercial bank recently at contracts signing ceremony at the Secretariat.
He, however, did not name the party nor did he elaborate what types of benefit the party wanted to get from taking over the private commercial banks.
On November 26, Muhith told reporters that the government was looking into the financial sources of S Alam Group following the takeover of the Social Islami Bank Limited by the Chittagong-based group.
On October 30, dramatic changes were made to the board and management of Social Islami Bank Limited that allowed S Alam Group to tighten its grip.
Besides, the group has already established its control over First Security Islami Bank and Union Bank, and bought a significant amount of shares in Islami Bank Bangladesh Limited through a number of companies.
S Alam Group was reportedly getting blessings of the incumbent government and was expected to be awarded with deal of major power plant.
Muhith reiterated the government initiative for awarding three more banking licences to private entrepreneurs although 57 public and private banks are in operation.
He said that he was not worried at all with the presence of so many banks.
More banks are needed to flourish banking services across the country, he noted.
He also said that banking services were yet to be established substantially.
He said those banks which would not survive the competition would be merged with other banks.
There is a provision of merger and its rules are getting upgraded, he said.
Earlier, officials of the state-run Skill for Employment Investment Programme signed deals with Bangladesh University of Textile and East West University for establishing Executive Development Centre.
Both universities would give training to graduate 840 students in management of textile, leather and footwear by 2020.
The contracts were signed with the skill development project implemented by the finance division since last year.
The government wanted to raise mid-level managerial experts for the growing textile and leather industries to check the outflow of fund sent by foreign workers, especially the Indians.
According to Muhith, the amount is whopping $5 billion annually.

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