Dhaka, Bangladesh (BBN)– The central bank of Bangladesh is set to review overall performances of four state-owned commercial banks (SoCBs) aiming to improve their financial health immediately by expediting recovery of classified loans, officials said.
The instruction will be given at a meeting to be held at the central bank headquarters in Dhaka on Sunday afternoon to review compliance with the memorandum of understanding (MoUs) with the four SoCBs — Sonali Bank, Janata Bank, Agrani Bank and Rupali Bank.
Bangladesh Bank (BB) Governor Dr Atiur Rahman would preside over the review meeting on the state of affairs of the state-run banks, they added.
The chief executive officers (CEOs)-cum-managing directors (MDs) and chairmen of the public banks are expected to attend the meet.
Talking to BBN, a BB senior official said, the central bank will instruct the banks for taking necessary measures to properly implement the existing core-risk guidelines to minimise their financial risks.
The BB earlier had identified six core-risk areas in the country’s banking sector. The risk factors are: credit, asset and liability, foreign exchange, information technology, internal control and compliance, and money laundering.
Different issues, including recovery position of default loans, liquidity situation, credit growth, operating expenses, capital position in line with the Basel-III standard and cost of funds of the SoCBs, will come up for discussion at the stocktaking meeting.
The BB earlier signed the MoUs with the managements of the SoCBs to improve their financial performance by providing policy support.