Bangladesh Bank in a sudden move yesterday appointed observers for three banks--IFIC Bank, UCBL and AB Bank--to monitor their activities closely following management issues in the banks.
The three private sector commercial banks have been suffering ownership disputes during the last few years, according Bangladesh Bank sources.
After the government launched its drive against corruption, a number of the major stakeholders of the three banks have either been put in jail or have been on the run.
The three banks remain under the purview of the central bank's "early warning system".
Sources said Mahfuzur Rahman of the Anti-money Laundering Department of Bangladesh Bank was appointed the observer for AB Bank while General Manager of Foreign Exchange Policy Department of Bangladesh Bank Naba Gopal Banik and General Manager of Training Department Abdul Awal were appointed observers for IFIC Bank and UCBL (United Commercial Bank Ltd).
Bangladesh Bank sources said the appointment of such observers is not unprecedented in the banking system. The central bank appoints such observers for banks that remain in the early warning system category, the source added.