Bangladesh Bank Governor Md Mostakur Rahman has warned of the highest possible disciplinary action after special audits into six banks uncovered “highly unusual” irregularities in foreign exchange transactions and information technology (IT) management.
Among the findings was the discovery of hidden loans, where Letter of Credit (LC) payments made in 2025 were not recorded in the respective clients’ accounts.
Speaking at a press conference following the announcement of the monetary policy for the first half (July-December) of the 2026-27 fiscal year on Tuesday, the governor revealed that six special teams from the central bank conducted the audits between 23 and 25 June.
The governor said the preliminary observations of the audit teams, discussed in a virtual meeting last Saturday, highlighted several severe discrepancies. “We have found many findings that are of a very unusual nature,” Rahman said.
“It was observed that an LC payment was made in 2025, but it was not shown in the customer’s account. This means such loans were concealed.”
Rahman emphasised that the central bank is maintaining a strict stance and will constitute further special audit teams to continue these inspections. He also indicated a significant shift in how irregularities are penalised.
According to the governor, clear instructions have been issued to banking supervision officials to ensure maximum penalties for any proven deviations.
“Previously, minimum punishments might have been awarded in many cases. Now, we want the maximum punishment to be applied according to the gravity of the irregularity,” he told reporters.
During the briefing, a reporter from TIMES of Bangladesh raised concerns regarding past investigations that remained unfinished or files that had gone missing. In response, the governor asserted that establishing good governance in the banking sector is now a top priority for the central bank.
He further noted that initiatives are underway to enhance accountability and transparency through the reduction of defaulted loans, intensified special audits, risk-based supervision, and the implementation of international accounting standards.
However, the central bank has not yet disclosed the names of the six banks involved in the special audit or the specific financial magnitude of the irregularities discovered.
