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09 August 2022

Business Insider Bangladesh

BB’s facility to Padma Bank ‘unethical’: TIB

BI Report || BusinessInsider

Published: 22:05, 8 January 2022   Update: 22:19, 8 January 2022
BB’s facility to Padma Bank ‘unethical’: TIB

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Transparency International Bangladesh (TIB) has criticised the central bank’s decision to allow Padma Bank to conceal its information of accumulated losses on the condition of bringing in foreign investment.

TIB on Saturday said in a statement that such unethical initiatives in the banking sector of the country are unprecedented.‎

Calling it “unethical” and “fraudulent”, the anti-corruption agency said the offered facility will eventually pose a risk of tarnishing the reputation of the country abroad.

It will also damage the credibility of Bangladesh Bank in establishing discipline and good governance in the financial sector in the coming days, TIB said.

Several media outlets recently reported that the central has agreed to allow Padma Bank to create a separate account hiding its information on losses as per the condition of the bank's consultancy firm DelMorgan which would bring a $70 crore foreign loan.

Padma Bank is currently facing a crisis of capital.