The Bangladesh Bank has decided to run special audits on nine banks through a taskforce to find out deep-rooted problems of these banks and solve those accordingly, said BB governor Ahsan H Mansur on Monday.
Mansur made the comment while speaking about the current liquidity shortage in banks at a press conference at the BB鈥檚 head office in the capital Dhaka on the day.
The central bank has recently formed the six-member taskforce led by the governor to reform the country鈥檚 banking sector which was marred by widespread irregularities during the ousted Awami League regime.
鈥業nitially, we will audit nine banks in three phases through the taskforce. Islami Bank will be audited in the first phase,鈥� Mansur said.
The BB has a plan to merge small crisis-hit banks to reduce the number of banks in the country, he said.
The taskforce will also begin its activities by appointing several foreign inspectors.
The taskforce will identify impaired assets, locate them, and work towards their recovery, Mansur stated.
The inspections will be carried out by three groups of officials.
The initiative funded by development partners will also engage international audit firms and foreign inspectors.
Mansur emphasised that the taskforce鈥檚 initial focus would be on identifying funds withdrawn from banks under false or real names.
Efforts will then be made to repatriate funds transferred abroad, in compliance with international laws, prioritising significant cases.
Mansur indicated that the current policy rate would be increased further this week and again next month.
Since March past year, the country has experienced inflation above 9 per cent, leading to multiple rate hikes following International Monetary Fund recommendations.
According to the governor, while businesses emphasise reducing inflation, the central bank鈥檚 current monetary policy is effective but will be tightened slightly.
Inflation is expected to go down to 5-6 per cent within seven to eight months, he said.
