Dhaka, Oct. 19 -- Bangladesh Bank Deputy Governor Nurun Nahar has said that the financial health of the five struggling Islamic (Shariah-based) banks-now being merged-was relatively stable before 2017 but deteriorated sharply after they were taken over.
"Before 2017, these Islamic banks were not in such poor shape. But after the takeover, their condition worsened - funds were siphoned off, single-borrower exposure limits were violated,and policy supports were misused under political influence," she said at a seminar titled "Bangladesh's Banking Crisis: Finding the Way Forward" organised by UNB on Friday.
She added that the situation would have been far better if the laundered funds had remained within the banks.
Nurun Nahar also noted th...