Bangladesh Bank (BB) has extended the deadline for banks to submit their annual reports till June 30 as most banks failed to prepare their reports even after four months of the completion of the year 2020.
Section 40 of the Banking Companies Act states that each scheduled bank is required to submit its annual audit report to the central bank in the first two months of the following year.A BB notification said that in consultation with the government, the provisions of Section 40 of the Banking Companies Act have been waived provisionally. At the same time, the deadline for submission of annual audit report of 2020 to Bangladesh Bank has been extended till June 30.
The banking sector has been facing difficulties in carrying out internal activities including the preparation of internal audit, annual report and quarterly report due to the disruption caused by the coronavirus pandemic.
Since March 2020, banks and financial institutions are adopting staff rotation method to ensure adequate healthy safety measure for protecting officials and employees from coronavirus infection.
For working at a limited capacity, only 20 out 60 banks of both public and private sector were able to submit their annual report 2020 to Bangladesh Bank (BB).
A.K.M Sajedur Rahman Khan, deputy governor of Bangladesh Bank (BB), told the Daily Sun that banks are working at limited capacity, which has affected their capacity to meet the reporting requirements in time.
“Reporting is a team work and it happens through a chain work,” he said.Considering the Coviod-19 situation, Bangladesh Bank discussed the issue with the government and decided to waive the Section 40 temporarily under the power by the Bank Company Act 1991, section 121, Sajedur Rahman said.
According to the sources at Bangladesh Bank, most of the banks could not finalize their accounts as the second wave of coronavirus started.
Syed Mahbubur Rahman, former chairman the Association of Bankers, Bangladesh (ABB) said that banking sector has been passing a hard time to conduct regular banking operations and preparing internal reports.
“Banking activities is a chain work, if an official of any level is absent or on leave or sick, none can clear or update the information related with that officer,” he said.