Muhith in Parliament

Farmers Bank unable to return client deposits

Farmers Bank unable to return client deposits

Dhaka, Jan 25 (Just News): Finance Minister AMA Muhith on Thursday told Parliament that Farmers Bank is unable to return its client deposits due to its liquidity crisis.

"Now the Farmers Bank can't return the deposits of its clients as the bank faces liquidity crisis," he said responding to a starred question from Jatiya Party MP Selim Uddin (Sylhet-5).

The minister said Bangladesh Bank is continuing its efforts maintaining intense communication with the government to tackle the liquidity crisis of the bank.

He said the financial base of the bank is getting weak due to its negligence in following regulatory and prudential rules and anomalies taken place at different stages of the Board of Directors and management after the inception of its banking activities.

Despite taking various measures taken by the central bank on various occasions, the overall condition of Farmers Bank is gradually getting worse, Muhith said.

He said the clients started withdrawing their deposits from the bank when the news of its weak financial condition was revealed in different ways.

Mentioning that the measures taken by the central bank, the Finance Minister said the Board of Directors of Farmers Bank has already been reconstituted for the restoration of its internal discipline.

The approval was given to appoint the new Managing Director of the bank removing its existing one, he said.

In reply to another question from ruling party MP Fazilatun Nasa Bappy (Reserved seat-30), Muhith said this is not a fact-based allegation that a huge amount of money is now being siphoned off the country. "Such claim of the capital flight is not supported by facts."

The Finance Minister said the government agencies concerned are working together to stop the possible sources of the capital flight.

He said the government remains active to take legal steps against the illegal flight of money earned through corruption and any other offence.

The law enforcement agencies and Bangladesh Financial Intelligence Unit (BFIU) are now in touch with their foreign counterparts for mutual cooperation in this regard, he said

A good number of cases are now pending with the court and under investigation of the Anti-Corruption Commission over siphoning money off money to various countries, including Singapore, the UK, the USA, Hong Kong and Canada, for building flats or houses or spending on other purposes, Muhith said.