Bangladesh Bank has approved licenses of three more banks at a time when the country’s banking sector is reeling under mismanagement.
The licensees are- Bengal Bank, People’s Bank and Citizen Bank.
The decision for approval of the licenses of the three banks came at a board meeting held yesterday at central bank headquarters in Motijheel, Dhaka. The new banks will take the total number of banks at 60.
Earlier in 2013, the central bank gave licences to nine banks. Many of the sponsors of the fourth-generation banks had direct links either with the Awami League or its allies.
The health of the nine new banks also deteriorated in recent times. Of those, Farmers Bank and NRB Commercial Bank are in a bad shape in the absence of corporate governance.
The piled up non-performing loan reflected deterioration of banking sector health raising concern among all related authorities. The total non-performing loan stood at Tk 99,370 crore at the end of September last year which was 11.45 percent of total outstanding loans, according to Bangladesh Bank data.