Farmers Bank MD Shameem removed

Bangladesh Bank (BB) has finally removed Farmers Bank’s Managing Director AKM Shameem.

BB spokesperson and Executive Director Subhankar Saha on Tuesday confirmed the matter to the Jagonews24.com.

Earlier, BB instructed the management of Farmers Bank Ltd (FBL) to remove its incumbent Managing Director Shameem.

In the letter sent on November 27, the central bank also asked the Farmers Bank authorities to explain, under Section 46 of the Bank Company Act, why Shameem should not be removed from office within seven days.

FBL’s finances started deteriorating soon after it was established in 2013. In January last year, the central bank appointed an observer in the bank’s board to ensure it was adhering to the Bank Company Act while disbursing loans and improving risk management and internal control.

On October 29 this year, the Parliamentary Standing Committee on the Ministry of Finance expressed serious concerns over the deteriorating condition of the bank.

According to a central bank report submitted to the committee, 13 counts of irregularities were found, including disbursement of loans to non-existent companies.