Staff Reporter :
Bangladesh Bank has enlisted the global auditing firms Ernst & Young (EY) and KPMG to assess the asset quality of six banks currently embroiled in financial scandals and allegations of corruption.
This audit, funded by the Asian Development Bank (ADB), aims to enhance transparency and accountability within the banking sector.
The six banks under scrutiny are First Security Islami Bank, Exim Bank, Global Islami Bank, Social Islami Bank, ICB Islamic Bank, and Union Bank.
EY will conduct audits of Global Islami Bank, Social Islami Bank, and ICB Islamic Bank, while KPMG will evaluate First Security Islami Bank, Exim Bank, and Union Bank, according to sources within the central bank.
Hosne Ara Shikha, spokesperson for Bangladesh Bank, stated that the audit findings will determine the fate of the managing directors (MDs) of these banks.
If found uninvolved in financial irregularities, the MDs may be reinstated; otherwise, they will face permanent dismissal, Shikha clarified.
Notably, four of the six banks have links to the S Alam Group, a business conglomerate associated with former Prime Minister Sheikh Hasina. Following the political transition in August, the central bank restructured the boards of directors for these institutions.
The ADB, actively supporting reform efforts, recently sent representatives to Bangladesh, advocating for a thorough review of the banks’ asset quality, which led to the launch of this extensive audit.
Bangladesh Bank has already requested comprehensive data from the six banks, instructing their chairpersons to fully cooperate with the audit teams.
Meetings involving central bank Governor Ahsan H. Mansur, senior officials, and ADB representatives have emphasised the importance of transparency throughout the process.
Preliminary inspections have revealed concerning patterns of large, anonymous cash withdrawals, a Bangladesh Bank official disclosed on condition of anonymity.
