Bangladesh forms task force to overhaul struggling banking sector


Dhaka: The central bank of Bangladesh has formed a task force aimed at reforming the struggling banking sector in the South Asian country.

The Bangladesh Bank (BB) on Wednesday issued a notification regarding the formation of a six-member task force for ensuring financial stability in the banking sector.

According to a BB statement, the task force will mainly assess the current financial situation of the banking sector and estimate the amount of distressed assets.

The task force will also identify major risks, review the financial indicators of underperforming banks, and assess the actual condition of loans, provision deficits, net capital, the true value of assets, and the overall liquidity situation, the statement said.

At least 10 commercial banks in Bangladesh are close to bankruptcy, Central Bank Governor Ahsan Mansur told media on Sept. 8.

He said the BB was working to save the banks by providing them with technical, advisory and liquidity support.

Source: The Namibia News Agency