Bangladesh Bank is, undeniably, the regulatory authority of banking as well as other financial sectors. Bank Companies Act, 1991 had fortified the power of Bangladesh Bank, yet, various scandals in the banking sector in recent time, a statutory showdown was required and Bank Companies Act (amendment), 2013 was no more charming to that. The power which was vested through Bank Companies Act, 1991 to Bangladesh Bank , was enough to check the irregularities in banking societies, all gone in vein since political manipulation in the credit system viz. Hallmark, Bismillah Group, BASIC Bank, NBL’s Myesha Group loan scam, Al-Arafa’s 500 crore loan scam and stagnancy in public banks pushed under so many pressure that a change should have been inevitable. Thus it requires seeing the law what significant change has ever been made:
1.
SECTION-3: empowering of Bangladesh Bank to commence inspection:
Section
3 has been amended in implicating the fact by titling that Bank Companies Act,
2013 will be applied to co-operatives societies and other financial
institutions rather than cooperatives banks.
“ 3.
Limited application of the Act for Co-operative Societies and other financial
institutions.
2.
OMISSIONS OF SECTION 4: NO ESCAPE FROM THE BURDEN OF BANK COMPANIES ACT, 2013:
By this section, GOB might exercise of
suspending the application of the law for a certain period of time which might
give a safe passage of letting perversion in the financial sector if they might
deem fit to do so, most extensively, taming the scandalous course of action,
hopefully the omission of this section might help to fill up the loop holes.
3.
SECTION 5: The definition of “loan defaulter” and “micro credit organization”
added.