Dhaka, Jan. 23 -- Bangladesh Bank moves to bolster its regulatory authority to waive, remit, or reduce penalties for banks' Cash Reserve Ratio (CRR) shortfalls in special circumstances as the central bank oversees the largest bank-consolidation effort in nation's history.

To this end, sources say, the central bank governor, Dr Ahsan H. Mansur, has sent a proposal to the finance adviser and financial institutions (FID) secretary to take step for inserting a new sub-clause into Article 36 of the Bangladesh Bank Order 1972.

This sought-after prowess would allow the banking regulator to relax CRR-related penalties under special circumstances, overriding existing statutory provisions, they add.

Under the proposed amendment, notwithstanding ...