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Credit to: Corruption News : AB Bank, SIBL tender unconditional apology to BB for irregularities in buyer’s credit
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AB Bank Limited and Social Islami Bank Limited (SIBL) have tendered their “unconditional apology” after a Bangladesh Bank (BB) investigation revealed irregularities in buyer’s credit issued to some business houses by their offshore banking units.
It was found that some debtors had shirked loan repayment, while yet others had utilised the money to pay off earlier loans taken from local sources.
When BB asked the two banks to explain the anomalies, they apologised, assuring such irregularities would not recur.
A senior BB official said the banks were told to ensure that credit given to the importers was not put to other use.
“Apart from telling them to make sure buyer’s credit is repaid on time, BB also asked the banks to reduce the credit limit,” the official said on condition of anonymity.
“It also warned of action against officials concerned, the bank, and debtors for any failure in future to repay the buyer’s credit in time,” the official said.
It was found that some debtors had shirked loan repayment, while yet others had utilised the money to pay off earlier loans taken from local sources.
When BB asked the two banks to explain the anomalies, they apologised, assuring such irregularities would not recur.
A senior BB official said the banks were told to ensure that credit given to the importers was not put to other use.
“Apart from telling them to make sure buyer’s credit is repaid on time, BB also asked the banks to reduce the credit limit,” the official said on condition of anonymity.
“It also warned of action against officials concerned, the bank, and debtors for any failure in future to repay the buyer’s credit in time,” the official said.