Bangladesh Bank (BB) has imposed restrictions on giving loans to parties and prohibited opening letter of credit (LCs) on six banks now being under control of the S Alam Group.
The central bank has suspended the lending activities of six Islamic banks linked to S Alam Group amid allegations of irregularities and wrongdoing.
They are: Islami Bank Bangladesh, First Security Islami Bank, Social Islami Bank, Union Bank, Global Islami Bank, and Bangladesh Commerce Bank.
The central bank sent a letter to these banks informing the restrictions, according to Bangladesh Bank (BB) Executive Director and Spokesperson Md Mezbaul Haque on Sunday.
Those six will not be able to disburse any new loan and not able to reschedule any previous loans until further notice. However, the lenders will be able to disburse agriculture loans, SME loans against deposits and incentives package up to Tk5 crore, said BB letter.
A senior official of the central bank said these six banks will not be able to distribute new loans or renew existing ones until further notice. Additionally, these banks will no longer be able to open new import licenses (LCs) from now on.
