Bangladesh Bank yesterday formed a standing committee to review the response of BASIC Bank Managing Director Kazi Faqurul Islam to the show-cause notice served on him in February.

The committee, to be headed by BB Deputy Governor Nazneen Sultana, would examine the 25-page letter from Islam against the allegations and make recommendations, based on which actions will be taken against him.In September last year, a memorandum of understanding was signed between BB and BASIC Bank to rein in the financial irregularities, rampant in the state-run scheduled bank for the past few years.

But central bank's latest investigations still found irregularities at BASIC Bank, even as recently as January, which prompted BB to slap on the notice to Faqurul asking why he should not be removed from his position.