Banks argue against probe into irregularities

The Bangladesh Association of Banks (BAB) yesterday argued in the court against a probe into banking sector irregularities. The association’s lawyer told the High Court (HC) during a hearing on a Bangladesh Bank (BB) circular on the rescheduling of loans that depositors would lose confidence and the effectiveness of existing laws would be challenged if the court formed an inquiry commission to probe irregularities in the banking sector.

Advocate Shah Monjurul Hoque, counsel for BAB, came up with the argument before an HC bench, comprising Justice JBM Hassan and Justice Md Khairul Alam, during the hearing on a rule issued by it earlier over the BB circular giving privilege to loan defaulters to reschedule their loans.

Hoque told the court that if an inquiry commission was formed to probe the irregularities of the banking sector, people and depositors would lose their confidence in banks. “Formation of an inquiry commission will also create an adverse environment and instability in the country. This will also prove that the existing laws are failing to tackle the irregularities in this sector,” the senior lawyer noted.

He also said the BB had allowed defaulters to reschedule their loans with a repayment period of 10 years. After rescheduling their loans, they could take out further loans. This option is not in conflict with the Constitution nor any other law in the country.

The HC bench adjourned the hearing till today. Advocate Manzill Murshid appeared on behalf of Human Rights and Peace for Bangladesh, a rights organisation that had filed the writ petition challenging the legality of the BB circular. Barrister Shameem Khaled and advocate Munirujjaman represented the BB.

On July 23, 2019, the same HC bench had issued a rule asking the BB authorities and the government to explain in 10 days as to why the circular issued on May 16, giving privilege to the loan defaulters, should not be declared illegal.

Following a writ petition filed by Human Rights and Peace for Bangladesh, the HC, on May 21, ordered a status quo till June 24 on the BB's May 16 circular that allowed defaulters to reschedule their defaulted loans for a period of 10 years on a down payment of just 2 per cent of the total loan amount and to get further loans. On June 24, the HC extended its May 21 order for next two months.

 

Banks argue against probe into irregularities

The Bangladesh Association of Banks (BAB) yesterday argued in the court against a probe into banking sector irregularities. The associations lawyer told the High Court (HC) during a hearing on a Bangladesh Bank (BB) circular on the rescheduling of loans that depositors would lose confidence and the effectiveness of existing laws would be challenged if the court formed an inquiry commission to probe irregularities in the banking sector. Advocate Shah Monjurul Hoque, counsel for BAB, came up with the argument before an HC bench, comprising Justice JBM Hassan and Justice Md Khairul Alam, during the hearing on a rule issued by it earlier over the BB circular giving privilege to loan defaulters to reschedule their loans. Hoque told the court that if an inquiry commission was formed to probe the irregularities of the banking sector, people and depositors would lose their confidence in banks. Formation of an inquiry commission will also create an adverse environment and instability in the country. This will also prove that the existing laws are failing to tackle the irregularities in this sector, the senior lawyer noted. He also said the BB had allowed defaulters to reschedule their loans with a repayment period of 10 years. After rescheduling their loans, they could take out further loans. This option is not in conflict with the Constitution nor any other law in the country. The HC bench adjourned the hearing till today. Advocate Manzill Murshid appeared on behalf of Human Rights and Peace for Bangladesh, a rights organisation that had filed the writ petition challenging the legality of the BB circular. Barrister Shameem Khaled and advocate Munirujjaman represented the BB. On July 23, 2019, the same HC bench had issued a rule asking the BB authorities and the government to explain in 10 days as to why the circular issued on May 16, giving privilege to the loan defaulters, should not be declared illegal. Following a writ petition filed by Human Rights and Peace for Bangladesh, the HC, on May 21, ordered a status quo till June 24 on the BBs May 16 circular that allowed defaulters to reschedule their defaulted loans for a period of 10 years on a down payment of just 2 per cent of the total loan amount and to get further loans. On June 24, the HC extended its May 21 order for next two months.