Bangladesh Bank has formed a six-member taskforce to reform the banking sector, according to a press release issued by the central bank on Wednesday.
The task force members are: Chief Adviser’s Special Envoy for International Affairs Lutfey Siddiqi, former Deputy Governor of Bangladesh Bank Rumee Ali, Brac Bank Chairman Meheriar M Hasan, Economist, Zahid Hussain, Vice-Chancellor of ZNRF University Professor Dr. M. Zubaidur Rahman and Sabbir Ahmed, Partner at Hoda Vasi Chowdhury & Co.
The central bank announced that this taskforce will assess the current financial situation of the banking sector to maintain financial stability. This includes evaluating non-performing assets and risks, reviewing the financial indicators of weak banks, determining the actual state of loans, identifying provision shortfalls, reviewing liquidity conditions, calculating net capital, and determining the real value of assets.
The task force will also conduct activities related to the segregation of non-performing assets in the concerned banks.
The task force will take steps to strengthen governance and risk management in banks, aiming to enhance resilience during crises.
These measures include limiting political and corporate influence on bank decision-making, reforming bank ownership structures, and providing recommendations on recovery and resolution frameworks for problem banks, along with preparing relevant guidelines. Policy measures will also be introduced for weaker banks.
The taskforce will work to reform and update various financial sector laws, such as the Bank Company Act and the Bangladesh Bank Order.
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