The Hallmark-Sonali Bank loan scam is a massive loan fraud that took place in Bangladesh between 2010 and 2012. State owned Sonali Bank's Ruposhi Bangla Hotel branch lent over 35 billion Bangladeshi taka ($454 million as of 2011) based on falsified documents. Little-known company Hallmark Group received the majority, nearly Tk 27bn ($344M), with the remaining loans spread among five other companies: T and Brothers, Paragon Group, Nakshi Knit, DN Sports, and Khanjahan Ali. An investigation by Bangladesh Bank, the country's central bank, concluded that the borrowers conspired with senior officials at Sonali Bank to embezzle the funds.[1][2]The Economist described the 2012 scam as Bangladesh's "biggest of many banking scandals since the banks were nationalised 40 years before".[3]
Backgroundedit
In 1972, after the Bangladesh Liberation War, Sonali Bank was formed by the amalgamation and nationalisation of the National Bank of Pakistan, Bank of Bahawalpur, and Premier Bank branches located in the former East Pakistan. It is the largest state owned commercial bank in Bangladesh.[4]
The perceived level of public sector corruption has consistently placed the country in the worst quartile of Transparency International's Corruption Perceptions Index. One form this rampant corruption takes is senior officials in public sector banks making imprudent loans to well-connected private companies.[5] State-owned banks are a major originator of bad loans to the private sector.[6]
^"From cancer to pimple". The Economist. 2014-04-19. Retrieved 2017-01-28.
^Mazid, Muhammad Abdul (2012). "Sonali Bank Limited". In Islam, Sirajul; Jamal, Ahmed A. (eds.). Banglapedia: National Encyclopedia of Bangladesh (Second ed.). Asiatic Society of Bangladesh.
^Quibria, M. G. (2019). Bangladesh's Road to Long-Term Economic Prosperity: Risks and Challenges. Springer. p. 98. ISBN978-3-030-11587-6.
^Islam, S. Nazrul (2016). Governance for Development. Palgrave Macmillan. p. 176. ISBN978-1-137-54253-3.
November 20, 2023
hallmark, sonali, bank, loan, scam, this, article, provides, insufficient, context, those, unfamiliar, with, subject, please, help, improve, article, providing, more, context, reader, january, 2017, template, removal, help, hallmark, sonali, bank, loan, scam, . This article provides insufficient context for those unfamiliar with the subject Please help improve the article by providing more context for the reader January 2017 template removal help The Hallmark Sonali Bank loan scam is a massive loan fraud that took place in Bangladesh between 2010 and 2012 State owned Sonali Bank s Ruposhi Bangla Hotel branch lent over 35 billion Bangladeshi taka 454 million as of 2011 based on falsified documents Little known company Hallmark Group received the majority nearly Tk 27bn 344M with the remaining loans spread among five other companies T and Brothers Paragon Group Nakshi Knit DN Sports and Khanjahan Ali An investigation by Bangladesh Bank the country s central bank concluded that the borrowers conspired with senior officials at Sonali Bank to embezzle the funds 1 2 The Economist described the 2012 scam as Bangladesh s biggest of many banking scandals since the banks were nationalised 40 years before 3 Background editIn 1972 after the Bangladesh Liberation War Sonali Bank was formed by the amalgamation and nationalisation of the National Bank of Pakistan Bank of Bahawalpur and Premier Bank branches located in the former East Pakistan It is the largest state owned commercial bank in Bangladesh 4 The perceived level of public sector corruption has consistently placed the country in the worst quartile of Transparency International s Corruption Perceptions Index One form this rampant corruption takes is senior officials in public sector banks making imprudent loans to well connected private companies 5 State owned banks are a major originator of bad loans to the private sector 6 See also editCorruption in Bangladesh Padma Bridge Scandal 2011 Bangladesh share market scamReferences edit Hallmark loan scam under ACC probe The Daily Star 2012 08 14 Muhith BASIC corrupted Sonali robbed Dhaka Tribune 2016 02 03 From cancer to pimple The Economist 2014 04 19 Retrieved 2017 01 28 Mazid Muhammad Abdul 2012 Sonali Bank Limited In Islam Sirajul Jamal Ahmed A eds Banglapedia National Encyclopedia of Bangladesh Second ed Asiatic Society of Bangladesh Quibria M G 2019 Bangladesh s Road to Long Term Economic Prosperity Risks and Challenges Springer p 98 ISBN 978 3 030 11587 6 Islam S Nazrul 2016 Governance for Development Palgrave Macmillan p 176 ISBN 978 1 137 54253 3 Retrieved from https en wikipedia org w index php title Hallmark Sonali Bank Loan Scam amp oldid 1088690506, wikipedia, wiki, book, books, library,
