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Bangladesh Bank to meet bank MDs and legal experts on Wednesday

  • Published at 10:43 pm February 5th, 2019
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The Bangladesh Bank building at Motijheel Mehedi Hasan/ Dhaka Tribune

The likely agenda of the crucial meeting include reducing non-performing loans (NPLs)

In a bid to bring reforms to the banking sector and lessen Non-Performing Loans (NPLs), Bangladesh Bank is going to hold a meeting with legal experts and the managing directors of scheduled banks on Wednesday.

"We are now working on recommendations for amending relevant laws and regulations to help reduce NPLs in the country’s banking sector," a senior official of the central bank told the Dhaka Tribune. 

"In the meeting, Bangladesh Bank officials will sit with a four-member team of legal experts, including Law Commission Chairman ABM Khairul Haque and Bangladesh International Arbitration Centre CEO Muhammad A (Rumee) Ali, as well as managing directors of the scheduled banks in this regard,” he added. 

The likely agenda of the crucial meeting include reducing NPLs, amending the Bank Company Act, Bankruptcy Act, Negotiable Instruments Act, and the mergers and acquisitions (M&A) regulation, the Bangladesh Bank source said. 

Talking to the Dhaka Tribune, Bangladesh Bank Executive Director and spokesman, Serajul Islam, said: “We will exchange views with them. The legal problems of the banking sector will also be highlighted in the meeting.”

“We proposed to the central bank to arrange this meeting to find ways for reducing NPLs," said MA Halim Chowdhury, managing director and CEO of Pubali Bank Ltd.

Talking to the Dhaka Tribune, AB Mirza Azizul Islam, a former advisor to the caretaker government, said: “This is a good initiative. I welcome this, but ensuring amendment cannot solve the crisis alone. Rather, ensuring implementation of the law is more crucial.”

Thousands of cases are still pending with the Artha Rin Adalat, and defaulters can get out simply by filing a writ petition with the High Court. This must be stopped, he added.