You are on page 1of 14

Discipline in the banking sector is

apparently under strain. At the same

time criminal activities in banks have
increased. In the absence of good
governance, many banks have
indulged in irregular activities and
corruption. Sensational stories are
emerging from the banking sector. As
a result, customers are losing
confidence. As no firm action has
been taken against those responsible,
these events are multiplying. A part
from Sonali Bank scandal, the central
bank has found cases of cheque
forgery, investment fraud and
irregularities in some other banks.
The possible reason of fraud are identified as follows
Lack proper of monitoring and controlling of
Bangladesh Bank over the banks
Internal links / relationships are set up between the
particular Bank and the Group
Political intervention over the banks
Misuse of power of employees of the particular banks
Lack of proper collateral
Proper investigation before providing loans
Directors of state-owned
commercial banks appointed on
political considerations
have allegedly played an
important role in this regard.
Millions of Taka has been
withdrawn in the name of fake
companies by opening local letter
of credit. Although many
irregularities have been detected
by the central bank, no punitive
action has been taken against
banks and bank officials. Letters
have been issued to the chief
executives of the banks several
The controversial group swindled
the money with the help of
bank officials mostly through
LTR (loan against trust receipt)
using names of fake foreign
buyers and forged documents.
The officials of the
bank responsible for such loans
were not taken to task rather
they were promoted. It is
alleged that loans have been
given to fake companies
because of political pressure
and connivance of dishonest
bank officials.
Bangladesh Bank, for example, has detected irregularities in
disbursement of loan by BASIC Bank. This bank has disbursed loans
of Tk 60 billion (Tk.6000 crores) in three years out of which Tk 30
billion (Tk 3000 crores) was advanced in irregular manner. Loans of
Tk 25 billion (Tk 2500 crores) were given from three branches. These
loans were given without any proper system. Names of the loan
recipients have been published in a newspaper. Names of the
branches are Gulshan, Santinagar and Dilkusha. These loans have
become a burden for the BASIC Bank.
Hall-mark scandal of Sonali Bank is unprecedented and did
have a negative impact on the banking sector. Hall-mark -
Group and some other groups of businessmen have taken Tk
35 billion (Tk 3500 crores) from Ruposhi Bangla Hotel
branch of Sonali Bank through local letters of credit. Sonali
Bank has written off the loans by the Hallmark Group, as
there is no hope of getting the money back of the loan
amount, around Tk1,700 crore has been written off against
the loans of the Hallmark Group from the Ruposhi Bangla
Hotel branch, and 13 other clients from other branches.
Fraud of Bismillah Group:
Bismillah Group, a terry towel producer, allegedly swindled Tk 1,100 crore from five
commercial banks showing fake documents. Earlier, Anti-Corruption
Commission (ACC)asked Bismillah Group chairman Nowrin Hasib and its
managing director Khaja Sulaiman Anwar to be present at the ACC head office
to face grilling on May 8, 2013. But, they did not appear before the commission
as they were said to have fled the country. As the two top officials of Bismillah
Group went into hiding, the probe report will be prepared without questioning
them, the ACC inquary officer said, on February 26, the anti-graft body formed a
five-member inquiry team to probe the alleged plundering of about Tk 1,100
crore from five banks. According to a Bangladesh Bank report, Bismillah Group
swindled about Tk 1,100 crore from state-run Janata Bank and four private
commercial banksPrime Bank, Shahjalal Bank, Jamuna Bank and Premier
Bankshowing fake export documents, taking governments cash incentive to
open business firms abroad and with accommodated bills through Letters of
Credit (LCs). The business group swindled Tk 392.57 crore from Janata Bank,
Tk 306.22 crore from Prime Bank, Tk 163.69 crore from Jamuna Bank, Tk
148.69 crore from Shahjalal Bank and Tk 62.97 from Premier Bank.
14% Janata Bank
Prime Bank

Jamuna Bank
Shahjalal Bank

Premier Bank
Last few years criminal activities in bank
have increased. As a result customers are
losing confidence. It is a big obstacle to
developed of a country. As a result,
people kept their saving money in
foreign bank. Two arrested Over ATM
money robbery in gazipur March 4, 2016.
UCB says foreigner caught in booths
CCTV camera from UCB ATM booths in
the Banani area when those foreigners
tried to steal the clients card
information and fund by using
skimming device.
Now a days, different kinds of banks fraud
are seen everywhere in our country. But it
should be stopped. According to our
opinion, we recommend some preventive
actions to reduce such kind of frauds.
Proper monitoring of Bangladesh Bank
should be ensured
Verify the collateral and proper document Fight
before providing loan
In case of providing loan, illegal activities of
banks employee should be controlled by
the bank authority
There should not be any type of political
All type of organizational ethics should be
followed by organization
If any organization involve in illegal
activities, it should be highly punished
The Govt. should handle such kind of
banks fraud
The banking sector makes
progress on the strength of
client confidence. The
central bank will have to be
more careful so that
confidence on baking is not
shaken. We all know that
nothing is perfect in the
universe and everything has
its good or bad side. If this
are continued in Bangladesh
how the economic growth is