DHAKA—In an effort to stabilize its banking sector, the central bank of Bangladesh has established a six-member task force. This initiative seeks to assess and mitigate financial instability that has been increasing within the sector.

According to Namibia Press Agency, the Bangladesh Bank (BB) announced the formation of this task force on Wednesday, focusing on analyzing the financial health of banks and pinpointing key areas of concern. The primary objectives of the task force include evaluating the current financial conditions, estimating the volume of distressed assets, and identifying significant risks. Furthermore, the team will review financial indicators of underperforming banks, scrutinize the actual conditions of loans, provision deficits, net capital, the true value of assets, and the general liquidity situation.

Central Bank Governor Ahsan Mansur, on September 8, expressed concern over the financial health of at least 10 commercial banks nearing bankruptcy. He elaborated on the measures being taken by the BB, including providing technical, advisory, and liquidity support to help these banks recover from their precarious positions.