The Bangladesh Bank (BB) has appointed two globally renowned accounting firms to conduct a detailed assessment of six banks as part of efforts to restore transparency and accountability in the banking sector.
According to the central bank, the firms are --‘Ernst & Young’ and ‘KPMG’ have been tasked with assessing the asset quality of six banks -- First Security Islami Bank, Exim Bank, Global Islami Bank, Social Islami Bank, ICB Islamic Bank and Union Bank.
Of those, Ernst & Young will focus on Global Islami Bank, Social Islami Bank, and ICB Islamic Bank, while KPMG will handle First Security Islami Bank, Exim Bank, and Union Bank.
The central bank spokesperson Hosne Ara Shikha said that the audit's findings will determine whether the managing directors (MDs) of these banks can resume their positions.
If the audit proves the MDs were not involved in financial irregularities, they may return to their roles. Otherwise, they will be permanently barred, she added.
Earlier, MDs of six private banks were sent on mandatory leave as per the decision of their boards of directors for ensuring transparency during audit.
Among six banks, four banks are associated with the S Alam Group, a business conglomerate linked to former Prime Minister Sheikh Hasina.
Following the political transition in August, the central bank restructured the boards of directors for these banks.
The Asian Development Bank (ADB), which is actively supporting the reform efforts, recently sent representatives to Bangladesh. They recommended a comprehensive review of the banks' asset quality, prompting this high-level audit.
The central bank has already requested detailed information from the six banks. Their chairmen have been instructed to provide full cooperation to the auditing teams.
