Bangladesh Bank has enlisted global auditing firms Ernst & Young (EY) and KPMG to evaluate the asset quality of six banks currently mired in financial irregularities and corruption.
London-based Ernst & Young Global Limited trading as EY, is a multinational professional services partnership. EY is one of the largest professional services networks in the world.
KPMG International Limited or KPMG, is a multinational professional services network, and one of the Big Four accounting organizations It is also based in London.
Along with Deloitte and PwC EY and KPMG, are the two of the Big Four accounting firms of the world. The two primarily provides assurance, tax, information technology services (including managed services in areas like Cybersecurity, Cloud, Digital Transformation and AI), consulting, and advisory services to its clients.
UNB adds: The audit, funded by the Asian Development Bank (ADB), is part of efforts to restore transparency and accountability in the banking sector.
The six banks targeted for the audits are: First Security Islami Bank; Exim Bank; Global Islami Bank; Social Islami Bank; ICB Islamic Bank and Union Bank.
EY 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, according to central bank sources.
Bangladesh 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, Shikha explained.
Notably, four of the six 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 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.
Bangladesh Bank has already requested detailed information from the six banks. Their chairmen have been instructed to provide full cooperation to the auditing teams.
Meetings involving central bank Governor Ahsan H. Mansur, top officials, and ADB representatives have emphasized the importance of transparency during the process.
Initial inspections revealed alarming patterns of anonymous cash withdrawals involving substantial amounts, said a Bangladesh Bank official on condition of anonymity.
