NDB Bank facing a financial crisis

Saturday, 29 December 2012 

A senior official at the National Development Bank (NDB Bank) said the bank was facing a serious financial crisis.

The reason for the crisis is due to the closure of accounts maintained by lawyers and judges in the bank. These professionals it is learnt have started to open accounts in other banks.

A large number of account holders at NDB are professionals and more than half of them are lawyers and judges. The bank is now facing a crisis since it violated the International Data Protection Act followed by banks worldwide. NDB had given out bank account details of the Chief Justice to prepare the impeachment motion against her.

A professional who maintained an account at NDB told us that there was a possibility that the bank would give confidential account details even to extortionists. The professional said the bank management would have to give an acceptable explanation to its customers the basis on which NDB had provided the Chief Justice’s account details to the parliamentary select committee.

A bank is bound to safeguard the confidentiality of accounts and account holders even before a court of law. However, the only exception to this rule is if the bank is facing a threat to its security and has a responsibility to safeguard national interests.

Nevertheless, it is evident that the NDB management had acted in violation to all these accepted norms in the case of the Chief Justice’s impeachment motion. Therefore, lawyers and judged have arrived at the conclusion that the bank could place its account holders at risk in future.

The bank official said NDB would face a massive downfall in the near future with most of its customers now starting close their accounts.