Course Code: B-505 Risk Management in Banking Course Description: NCC Bank Scams, Crescent Group Scam with Janata Bank and Bangladesh Bank Heist

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Year 2022
A Term Paper On
NCC Bank Scams, Bangladesh Bank Heist and
Crescent Group Scam with Janata Bank

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Course Name: Risk Management in Banking
Course code: B-505
Prepared By Group-9
NAME ID
Debashis Majumder 04
Farjana Akhter Keya 17
Papri Akter 24
Urmi Akter 49
Rokonuzzaman 119
Department of Banking and Insurance
Batch-22nd
MBA Major: Banking
Faculty of Business Studies
University of Dhaka
Prepared For
Dr. Main Uddin
Professor
Department of Banking & Insurance
Faculty of Business Studies
University of Dhaka
Date of Submission: 03 February, 2022
LETTER OF TRANSMITTAL
DATE: 03 February, 2022
Dr. Main Uddin
Professor
Department of Banking and Insurance

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Faculty of Business Studies
University of Dhaka
SUBJECT: Submission of Term Paper on NCC Bank Scams, Bangladesh Bank Heist and
Crescent Group Scam with Janata Bank.
Dear Sir,
We are here by submitting our Term Paper on NCC Bank Scams, Bangladesh Bank Heist and Crescent
Group Scam with Janata Bank, which is a part of our B-505 course curriculum. It was a great
achievement for us to work on this term paper.
This term paper gave us the overall knowledge about the recent bank scams and banking anomalies of the
banks and how we can overcome these irregularities.
We shall be highly obliged if you are kind enough to receive this term paper and provide your valuable
judgment. It would be our immense pleasure if you find this term paper useful and informative to have an
apparent on this issue.
NAME ID
Debashis Majumder 04
Farjana Akhter Keya 17
Papri Akter 24
Urmi Akter 49
Rokonuzzaman 119
Signature of group leader
Acknowledgement
One of the most pleasant parts of submitting a term paper is the opportunity to thank those who
have contributed to it. At the very beginning, we would like to express our heartiest gratitude to

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the most gracious and almighty Allah for giving us the strength and the composure to finish this
task.
It is a great honor for us to submit this term paper to our respected faculty Professor Dr. Main
Uddin, Department of Banking and Insurance, University of Dhaka. At first, we want to convey
our thanks and gratitude to her for assigning us to prepare term paper entitled, “NCC Bank Scams,
Bangladesh Bank Heist and Crescent Group Scam with Janata Bank”. It would not have been possible
for us to complete the report without his help.
The presentation of this Term Paper is of a great expectation in our M.B.A program and we are
quite happy to submit it. Theoretical knowledge is valued when it is successfully applied in
practical scenario.
Executive summary
This term paper is about the recent banking scams in Bangladesh. Although banking industry in
Bangladesh is highly regulated by Bangladesh Bank, irregularities are pervasive. The extent of
scams has been so high that it is ruining public confidence on the banking sector.

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The scandals of banking sector are not limited to private and public commercial banks but also to
central bank as well. There are many causes of all these scams ranging from poor regulations,
corporate governance failures, lack of supervision, biasness and connected party transactions,
weak cyber security and many more.
The impact of these scams on our economy is enormous. The money that is lost in the process of
these scams are the hard earned money of the small savers. There is no one to protect their rights.
The social impact is also very acute.
Strict measures should be taken to curb the anomalies of the banking sector. This may range
from close supervision and punitive actions against inconsistencies.
Table of Contents
1 Introduction............................................................................................................... 7
2 NRBC Bank Scam..................................................................................................... 8
2.0 Background of NRBC Bank................................................................................... 8

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2.1 Major banking regulations in Bangladesh.............................................................8
2.2 Scam connected to related party lending.............................................................9
2.3 Scams connected to Single borrower exposure....................................................9
2.4 Scams connected to collateral..............................................................................9
2.5 Inconsistency between Loan Purpose and Utilization...........................................9
2.6 Scams related to provide shelter to defaulters...................................................10
2.7 Internal anomalies.............................................................................................. 10
2.8 Root causes of NRBC Bank scam........................................................................10
2.9 Legal actions against NRBC bank.......................................................................10
2.10 Economic and Social Impact of NRBC Bank Scam............................................10
2.11 Recommendations............................................................................................ 11
3.0 Bangladesh Bank Heist....................................................................................... 12
3.1 How the Hackers Hack........................................................................................ 12
3.2 Aftermath of the Heist........................................................................................ 14
3.3 The Major Problems............................................................................................ 15
3.4 Recommendations.............................................................................................. 16
4.0 Crescent Group Scam with Janata Bank.............................................................19
4.1 Overview of Crescent Group’s Scam..................................................................19
4.2 Causes of Crescent Group’s loan scam with Janata Bank...................................19
4.3 Legal Actions taken by police& Bangladesh Bank..........................................................20
4.4Impact of Crescent Group’s scam on the economy.............................................20
4.5 Social Impact...................................................................................................... 21
4.6 Recommendations..................................................................................................... 21
5.0 Conclusion.......................................................................................................... 23
1 Introduction
Bank scams and bank irregularities have become a deep concern for the banking industry of
Bangladesh. Banks engage in an intermediary business with the money taken from general
public. But if there is lack of honesty, transparency and due diligence, then public confidence
will be affected. The centre for policy dialogue (CPD) research found that the country has lost
Tk. 225.02 billion (22,502 crores) during the last 10 years through major scams, irregularities,
and heists. This is the hard earned money of the general public. This report analyzes three major