6-member taskforce formed to reform banking sector
This task force will assess the current financial situation, distressed assets and major risks in the banking sector
The Bangladesh Bank has formed a six-member taskforce to conduct reform works in the banking sector.
This taskforce will assess the current financial situation, distressed assets and major risks in the banking sector, the central bank said in a circular issued today (11 September).
It will also review the financial indicators of weak banks, liquidity situation; assess the actual condition of loans, provision deficit, net capital, and actual value of assets of the banks, added the circular.
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The committee will further work on segregation of distressed assets.
Who are the members?
According to the central bank circular, the taskforce members are: Chief Adviser's Special Envoy on International Affairs Lutfey Siddiqui; former Bangladesh Bank deputy governor Muhammad A Rumee Ali; Brac Bank PLC Chairman Meheriar M Hasan; former lead economist of World Bank's Dhaka office Zahid Hussain; ZNRF University of Management Sciences Vice Chancellor Prof M Zubaidur Rahman; Hoda Vasi Chowdhury & Co's Partner Sabbir Ahmed.
The circular on taskforce formation comes a week after Governor Ahsan H Mansur, in a views-exchange meeting with journalists, said three separate taskforces will be formed with local and foreign experts to ensure the autonomy of the central bank, to collect defaulted loans and facilitate asset recovery.
In the meeting, which followed an earlier meeting with bankers, on 4 September, the governor said the first of the three taskforces is to reduce non-performing loans (NPL), while mentioning the need for time to restore the banking sector.
He added that the second taskforce will focus on strengthening the operations of the Bangladesh Bank, while the third taskforce will be dedicated to asset recovery.
"The taskforce will work to recover the money from the defaulters as soon as possible. Law ministry, Bangladesh Financial Intelligence Unit (BFIU) officials will be in the taskforce which will start its activities within the next 1-2 months," he said on the day.
"We will bring experts from countries like the USA, UK and institutions like the IMF. Central bank officials will also be included. 80% of the total officers in these taskforces will be taken from the central bank, the remaining 20% will be foreign experts," the governor added.
