Dhaka, Sep 11 (V7N): The Bangladesh Bank has established a six-member taskforce to initiate reforms in the banking sector, aiming to address key challenges such as distressed assets and financial risks. The central bank issued a circular today detailing the taskforce's responsibilities.

The taskforce will assess the current state of the banking sector, reviewing financial indicators of struggling banks, liquidity issues, loan conditions, provision deficits, net capital, and asset valuation. Additionally, it will focus on segregating distressed assets for better management, the circular added.

Taskforce Members:

According to the central bank's announcement, the taskforce includes:

  1. Lutfey Siddiqui – Chief Adviser's Special Envoy on International Affairs
  2. Muhammad A Rumee Ali – Former Bangladesh Bank Deputy Governor
  3. Meheriar M Hasan – Chairman of Brac Bank PLC
  4. Zahid Hussain – Former Lead Economist at World Bank’s Dhaka office
  5. Prof M Zubaidur Rahman – Vice Chancellor of ZNRF University of Management Sciences
  6. Sabbir Ahmed – Partner at Hoda Vasi Chowdhury & Co.

This move follows a recent statement from Governor Ahsan H Mansur, who had announced the formation of three separate taskforces to ensure the central bank’s autonomy, address non-performing loans (NPL), and facilitate asset recovery. During a meeting with journalists, the governor stressed that the first taskforce would focus on reducing NPLs, while another would work on strengthening Bangladesh Bank's operations. The third taskforce will concentrate on recovering defaulted loans.

Governor Mansur added that the taskforces would involve local and foreign experts, including officials from the Law Ministry and Bangladesh Financial Intelligence Unit (BFIU). Central bank officers will make up 80% of the taskforce, with the remaining 20% consisting of international experts from the USA, UK, and institutions like the IMF.

END/MSS/