Farmers Bank in dire straits
The Farmers Bank Ltd. that started its banking operations only four years ago, has been facing acute liquidity crisis, unlimited corruption and widespread mismanagement. The directors of the bank in connivance with the management are reported to have been involved in widespread irregularities and corruption particularly in respect of disbursements of loans and advances. As a result of mismanagement and irregularities, the newly established bank has already had non-performing loans worth Tk 3.77 billion as of September 30, 2017.
In this connection, the previous chairman had to resign amid allegations of corruption. Farmers Bank had long been making headlines for its irregularities and massive corruption. Bangladesh Bank being the regulatory authority could not rise to the occasion and although it appointed an observer in January, 2016, it failed to bring back discipline in the bank. In case of Farmers Bank, BB should bring to book the corrupt directors and officers and mere forcing a few directors to resign will not ensure future well-being of the bank.