Central bank moves to meet Farmers Bank capital shortfall

Bangladesh Bank (BB) has moved to find out a way to resolve the ongoing capital shortfall in the Farmers Bank Limited (FBL), a fourth generation bank that has been facing severe capital crunch.

In this regard, the central bank on Tuesday held a meeting with the Investment Corporation of Bangladesh (ICB) and state-owned Sonali Bank, Janata Bank, Agrani Bank and Rupali Bank at BB headquarters in the city. Latest capital position of FBL and the possible ways to recapitalise the bank were discussed at the meeting.

Chaired by BB Governor Fazle Kabir, the meeting was attended by chairmen and managing directors of the four state-owned banks and ICB, reports BSS.

"The government is sincerely working to protect public interest by saving the bank as a huge amount of public money has been deposited in the bank's accounts," ICB Chairman Dr Mojib Uddin Ahamed told the news agency after the meeting.

So, he said, the central bank called the meeting and discussed the possible ways to support the bank. "Different possible ways have come up from the meeting, but no final decision is yet to be taken. Bangladesh Bank will analyse the ways and take a final decision later," Mojib said.

"We will find the best way to support the bank," he added.

Agrani Bank Chairman Dr Zaid Bakht said Farmers Bank has been facing severe capital shortfall and the today's meeting discussed ways to overcome the present situation of the bank.

He said the central bank is likely to hold another meeting soon to take a final decision in this regard.