Staff Reporter :
The Bangladesh Bank has announced the formation of a six-member task force to spearhead reforms in the country’s banking sector.
The task force will be led by Dr Lutfey Siddiqi, the Chief Adviser’s Special Envoy, with the overall coordination handled by the Governor of the Bangladesh Bank.
The banking regulator issued a notification on Wednesday regarding the formation of the task force, which aims to ensure financial stability within the banking sector.
The team includes prominent figures such as Dr Lutfey Siddiqi, former Deputy Governor of Bangladesh Bank Muhammad A. (Rumee) Ali, Chairman of BRAC Bank Meheriar M. Hasan, former Lead Economist of the World Bank’s Dhaka Office Dr Zahid Hussain, Vice-Chancellor of ZNRF University of Management Sciences Professor Dr M. Zubaidur Rahman, and Sabbir Ahmed, FCA, Partner at Hoda Vasi Chowdhury & Co.
Earlier this week, on Sunday, Bangladesh Bank Governor Ahsan H. Mansur mentioned that the task force, which is being set up to address critical areas in the banking sector, will commence its work within the next 10 days.
According to the press release, the task force will primarily assess the current financial conditions of the banking sector.
It will conduct a comprehensive evaluation of distressed assets, major risks, financial indicators of weaker banks, actual credit status, provision shortfalls, liquidity situations, net capital, the true value of assets, and the separation of bad assets from troubled banks.
In addition, the task force will provide recommendations for developing a robust regulatory framework.
This will include limiting political and corporate influence in bank decision-making processes and proposing reforms in bank ownership to strengthen governance and risk management for greater resilience in times of crisis.
The task force will also propose amendments to various financial sector laws, including the Bank Company Act, the Bangladesh Bank Order, and legislation related to asset management companies, bank acquisitions, and mergers.
Furthermore, they will focus on reforms and modernisation efforts while taking steps to issue a comprehensive white paper on the banking sector.