Bangladesh Bank restructures board as 3 new directors join
The central bank has also passed the area of responsibility of the six-member taskforce, which was formed in September to conduct reform works in the banking sector
The Bangladesh Bank has restructured its board of directors by adding three new members.
This development came through a board meeting today (10 November), Husne Ara Shikha, executive director and spokesperson of the central bank, told The Business Standard.
The three new directors are Fahmida Khatun, executive director of the Centre for Policy Dialogue; Md Habibur Rahman, deputy governor of the Bangladesh Bank; and Nazma Mubarek, secretary to the Financial Institutions Division.
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Shikha said the board meeting also set and approved the responsibilities of the six-member taskforce formed in September to carry out reforms in the banking sector.
This taskforce will assess the current financial situation, distressed assets, and major risks within the banking sector, according to a central bank circular issued on 11 September.
It will also review the financial indicators of weak banks, liquidity situations, assess the actual condition of loans, provision deficits, net capital, and the actual value of assets held by banks. The taskforce will also focus on the segregation of distressed assets, as stated in the circular.
The central bank spokesperson added that the board was also formally briefed about the writ petition concerning the Beximco Group.
Based on the petition, the High Court on 19 September directed the Bangladesh Bank to appoint a receiver to manage the functions of Beximco Group of Companies and attach all its assets.
The court also ordered the central bank to repatriate money allegedly laundered by Salman F Rahman, the group's owner. Additionally, the central bank was instructed to submit a report to the court within four weeks regarding the implementation of the order.
Moreover, the Appellate Division of the Supreme Court on 1 October refused to stay the High Court order by passing a 'no order' ruling on a petition filed by Beximco Pharmaceuticals Limited.
In legal terms, a receiver is an independent and impartial person appointed as a custodian of a person or entity's property, finances, general assets, or business operations.
Receivers can be appointed by courts, government regulators, or private entities. The receiver's role is to manage assets in accordance with the law, typically to repay debts or oversee business operations in the best interest of creditors.
