Bangladesh Bank has formed a six-member task force to conduct reform work in the banking sector.

This task force will assess the current financial situation, distressed assets and major risks in the banking sector, the central bank said in a press release on Wednesday.

The members of the task force are Chief Adviser's Special Envoy on International Affairs Lutfey Siddiqui; former Bangladesh Bank deputy governor Muhammad A Rumee Ali; Brac Bank PLC Chairman Meheriar M Hasan; former lead economist of World Bank's Dhaka office Zahid Hussain; ZNRF University of Management Sciences Vice Chancellor Prof M Zubaidur Rahman; Hoda Vasi Chowdhury & Co's Partner Sabbir Ahmed.

According to the press release, the task force will assess the current financial situation of the banking sector, conduct assessment of distressed assets and major risks, financial indicators of weak banks, actual credit status, provision shortfall, liquidity situation, net capital, actual value of assets, and separation of bad assets of the troubled banks.

It will also provide recommendations regarding the development of regulatory framework, limitation of political and corporate influence in banks’ decision-making, and bank ownership reform, under the process of strengthening bank governance and risk management to achieve crisis resilience, said the press release.

Additionally, the task force will propose reforms in various laws related to the financial sector such as the Bank Company Act, Bangladesh Bank Order, asset management companies, bank acquisitions, mergers legislation, reforms and modernisation and will take steps to issue a banking sector white paper.

The overall functions of the task force will be coordinated by the Governor of Bangladesh Bank, it added.