Kamal justifies permission for 3 more new banks

Finance minister AHM Mustafa Kamal on Monday said three new banks were approved after a complete study and considering their necessity, reports UNB.

"The central bank governor yesterday (Sunday)said they would not have done it if there wasn't any definite need. They may have felt that there was a necessity and gave the nod based on it," the minister told the media at the secretariat.

The Awami League has since 2009 given approval for opening 14 banks. Apart from the AL leaders, the Border Guard Bangladesh and the Bangladesh Police too get licence for banks.

With the latest three the number of scheduled banks has increased to 62.

Kamal said he believes the approval came after a complete study by the central bank and other stakeholders.

On Sunday, Bangladesh Bank's board of directors approved three new commercial banks - Bengal Commercial Bank, The Citizen Bank and People's Bank.

Replying to a query about the former finance minister's statement that there was no need for new banks, Kamal said: "It doesn't matter how many banks are there in the country ... If they can provide quality services to customers following rules and regulations, then in that case, I think I'm not worried about the number [of banks]."

About the new banks, former governor of Bangladesh Bank Salehuddin Ahmed said permission for opening banks was given earlier on social and political consideration.

"Such decisions have not yielded good results. The people could not be confident about those banks, And the country's financial sector, too, suffered," he added.