Staff Correspondent
Published:2024-09-11 21:57:43 BdST
Task force formed for banking sector reforms
Bangladesh Bank has established a six-strong task force to reform the banking sector and enhance financial stability.
The decision was made by the central bank on Wednesday, according to Mohua Mohsin, director and assistant spokesperson of Bangladesh Bank.
According to the central bank, the members of the task force includes Lutfey Siddiqi, chief adviser's special envoy for international affairs, Muhammad A (Rumee) Ali, former deputy governor of the Bangladesh Bank, Meheriar M Hasan, chairman of BRAC Bank PLC, Zahid Hussain, former chief economist of the World Bank’s Dhaka office, Prof M Zubaidur Rahman, vice-chancellor of ZNRF University of Management Sciences, and Sabbir Ahmed, Partner at Hoda Vasi Chowdhury & Co.
According to a letter from Bangladesh Bank, the task force will assess the current financial conditions of the banking sector, identify non-performing assets and key risks, review financial indicators of weak banks, determine the true state of loans and identify provision shortfalls.
It will also examine liquidity conditions, determine net capital, assess the true value of assets and manage the separation of non-performing assets.
The task force will also propose regulatory frameworks to enhance governance and risk management in the banking sector, limit political and corporate influence on decision-making and recommend reforms for banking ownership.
It will develop recovery and resolution frameworks for troubled banks and propose various policy measures for weak institutions.
The team will also propose reforms and updates to asset management, bank acquisition and merger laws and will initiate steps for publishing a white paper on the banking sector.
The overall activities of the task force will be coordinated by the governor of Bangladesh Bank.
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