The board of directors of the bank, which is reeling under allegations irregularities and loan scams, recently sent the proposal to the central bank. The financial sector regulator announced the approval in a circular on Wednesday, saying it replaced ‘The Farmers Bank Limited’ with ‘Padma Bank Limited’ on the list of all scheduled banks from Tuesday. According to a government report on the Farmers Bank, it loosened rules of disbursing loans and its internal control system soon after it was established by ruling Awami League MP Muhiuddin Khan Alamgir in 2013. The government report said the Farmers Bank situation put Bangladesh’s entire financial sector at risk. The Investment Corporation of Bangladesh or ICB and four government banks - Sonali, Janata, Agrani and Rupali - bought majority share of the troubled bank recently in a desperate effort to save it.

Source: bd News24 January 30, 2019 14:48 UTC