The Bangladesh Bank (BB) has introduced a new Risk-Based Supervision (RBS) framework, marking a shift from traditional compliance-oriented oversight to a more proactive, risk-centric supervision model aimed at restoring confidence among depositors and strengthening financial system resilience.
Under the new approach, regulators will prioritise supervisory efforts based on the specific risk profiles of individual banks and financial institutions rather than applying a uniform “one-size-fits-all” regime. The RBS framework enables early identification of vulnerabilities and more decisive responses to emerging threats in areas such as governance, asset quality and liquidity exposures.
Arif Hossain Khan, Executive Director and spokesperson of Bangladesh Bank, confirmed that the central bank’s internal reorganisation to support RBS has been completed and that full implementation began on Sunday. “This will be a far more rigorous supervisory regime,” he said, emphasising that oversight will now be driven by accurate data and proactive risk assessment rather than routine compliance checks.
The transition to RBS involved restructuring the central bank’s supervisory architecture. Thirteen existing departments have been reorganised into 17 specialised units, including 12 bank supervision departments focused on targeted oversight informed by real-time data. Five additional units have been established to address evolving risk areas such as digital banking, data analytics, payment systems and policy formulation.
A dedicated unit has also been created to monitor anti-money laundering and terrorist financing activities, modelled on the Bangladesh Financial Intelligence Unit (BFIU), signalling a stronger regulatory emphasis on financial integrity.
The RBS rollout had been scheduled for January 1 but was postponed due to a period of national mourning following the death of former Prime Minister Begum Khaleda Zia.
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