Bangladesh Bank has formed a six-member committee led by Executive Director SK Sur Chowdhury to probe whether commercial banks were involved in stockmarket irregularities.

The team will examine allegations of bank-related irregularities mentioned in the share market probe report, which has been submitted to the government by an investigation panel.

On April 7, Khondaker Ibrahim Khaled, chairman of Bangladesh Krishi Bank, submitted the probe report, accusing “all the institutions that have anything to do with the stockmarket for the debacle”.

The central bank committee has been asked to submit its report within next one month, said an official of the central bank.

According to the terms of reference, the committee will examine whether there was any irregularity in the commercial banks' trading in the stockmarket in respect of the Banking Companies Act and different circulars of the central bank.

If required, the committee will be able to conduct inspection.

On the basis of its recommendations, the central bank will later take necessary action, officials said.

The central bank's latest measure will be seen as a step towards regaining some of the confidence it lost in recent months, as retail investors as well as critics think Bangladesh Bank could have done more to avoid the unprecedented collapse in the history of the country's stockmarket.

Source: The Daily Star/Bangladesh/May 30, 2011