BB restricts lending activities of six S Alam-linked banks

The banks are: Islami Bank Bangladesh, First Security Islami Bank, Social Islami Bank, Union Bank, Global Islami Bank, and Bangladesh Commerce Bank

Star Business Report

Mon Aug 19, 2024 03:05 PM Last update on: Mon Aug 19, 2024 05:16 PM

The central bank has restricted the lending activities of six Islamic banks linked to S Alam Group amid allegations of wrongdoing.

They are: Islami Bank Bangladesh, First Security Islami Bank, Social Islami Bank, Union Bank, Global Islami Bank, and Bangladesh Commerce Bank.

The central bank made the call through a letter sent to the banks, according to Bangladesh Bank Executive Director and Spokesperson Md Mezbaul Haque.

Those six will not be able to disburse any new loan and also will not able to reschedule any previous loans until further notice.

However, the lenders will be able to disburse agriculture loans, SME loans against deposits and incentives package up to Tk5 crore, said BB letter.

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