BANGLADESH BANKING REGULATION COMPLIANCE: A GROWING CHALLENGE

Introduction

The banking sector in Bangladesh has experienced rapid growth and expansion, leading to new challenges, including stricter regulation and compliance. The Bangladesh Bank (BB) is responsible for regulating and supervising commercial banks, financial institutions, and microfinance organizations.

Compliance with Bangladesh Bank Regulations

The BB has issued several regulations and guidelines to ensure compliance with international standards and best practices. These guidelines cover various aspects of banking operations, such as prudential regulations, agent banking operation, and establishing a new bank in the country.

Scheduled Banks Guidelines

The following guidelines are applicable to scheduled banks:

• Prudential Guidelines for Agent Banking Operation in Bangladesh: These guidelines provide a framework for the operation of agent banking services by commercial banks.
• Guidelines to Establish a Banking Company in Bangladesh: These guidelines outline the requirements and procedures for establishing a new bank in the country.
• Prudential Regulations for Banks: These regulations provide guidance on capital adequacy, liquidity, credit risk management, and other aspects of banking operations.

Financial Institution Guidelines

The following guidelines are applicable to financial institutions:

• Integrity Award Guidelines for Financial Institutions: These guidelines outline the criteria for evaluating the integrity of financial institutions.
• Guidelines to Fill in the NBFI Returns-1, 2 & 3: These guidelines provide a framework for reporting by non-banking financial institutions (NBFI).
• Prudential Regulation for Financial Institutions: These regulations provide guidance on capital adequacy, liquidity, credit risk management, and other aspects of NBFIs.

Banks and Financial Institutions

The following guidelines are applicable to banks and financial institutions:

• Indicative Guidelines for CSR Expenditure Allocation and End-Use Oversight: These guidelines provide a framework for corporate social responsibility (CSR) expenditure allocation and oversight.
• Guidelines on Stress Testing: These guidelines outline the requirements and procedures for stress testing by banks and NBFIs.

Payment and Settlement Systems

The following regulations and guidelines are applicable to payment and settlement systems:

• Bangladesh Mobile Financial Services (MFS) Regulations, 2022: These regulations provide a framework for mobile financial services in the country.
• Bangladesh Automated Cheque Processing System (BACPS) V 2.0 - Operating Rules & Procedures: These guidelines outline the requirements and procedures for operating the BACPS.

National Financial Inclusion Strategy

The BB has also issued a national financial inclusion strategy, which aims to promote financial inclusion in the country.

Conclusion

Compliance with Bangladesh Bank regulations is essential for ensuring stability and integrity in the banking sector. The guidelines and regulations issued by the BB provide a framework for commercial banks, financial institutions, and microfinance organizations to operate in a safe and sound manner.

Sources

• Bangladesh Bank
• International Monetary Fund (IMF)
• World Bank

Note: This response is intended to provide general information and guidance only. It is not a substitute for professional advice or consultation with the relevant authorities in Bangladesh.