Task force launches investigations into 6 troubled banks

Bangladesh Bank takes steps to ensure forensic audits are conducted without influence

A task force formed to reform the banking sector in Bangladesh has initiated a financial investigation into six banks entangled in loan scandals.

The banks under scrutiny are First Security Islami Bank, EXIM Bank, Global Islami Bank, Social Islami Bank Limited, ICB Islamic Bank, and Union Bank Limited.

Md Abdul Mannan, chairman of First Security Islami Bank, told bdnews24.com: "The task force has held meetings with the banks one by one, and its investigation is under way."

Earlier this week, the Bangladesh Bank placed the managing directors of these beleaguered banks on mandatory leave.

The central bank spokesperson Husne Ara Shikha said at the time, “A forensic audit will be conducted in these banks.

“To ensure these audits remain unbiased, the former MDs have been sent on leave.”

A senior task force official told bdnews24.com that the investigation aims to uncover the amount of money disbursed as loans, identify the beneficiaries, trace the destinations of these loans, and assess the quality of the banks’ assets.

He added that members of two international audit firms would soon join the six-strong task force team.

According to a senior official at Bangladesh Bank, the task force started its audit in the banks on Monday.

He said, “On the first day, they held meetings with the management teams of the banks.

“Many banks list certain assets on paper that do not exist in reality. These issues will also be reviewed carefully."

The official added that the central bank’s inspection teams would uncover irregularities in loan disbursement, and their reports would be coordinated with the task force.