Dhaka, May 14 -- A special regulatory probe into nine commercial banks with higher exposure to the foreign-exchange market begins to prevent potential volatility as Bangladesh transitions into a band-centric floating exchange-rate regime, officials said.

Nine teams of Bangladesh Bank (BB) have been fielded to conduct the fresh inspections about eight leading private commercial banks (PCBs) and one state-owned commercial bank (SoCB) in connection with such dubious dealings in the greenback.

The teams got down to doing on-site inspections into the banks on Wednesday, focusing alleged 'rate distortion' to foreign exchange that may fuel volatility on the market in the near future, they added.

Rate distortion means banks charge higher price...