Recent

Developments

in

Financial

Sector

of

Bangladesh Automation and Technological Development: progress in

Related links

Banking sector experienced remarkable

respect of automation in functioning in last several years. For the pro-active and forward-visioning approach of Bangladesh Bank, numbers of automation initiatives have been implemented in banking sector. These initiatives include:

To

create

disciplined

environment

for

borrowing, the automated Credit Information Bureau (CIB) service provides credit related information borrowers. for ith prospective this and existing improved and efficient

system, risk management will be more effective. Banks and financial institutions may furnish credit information to !"B database #$ by % around the year& and they can access credit reports from !"B online instantly. L/C Monitoring System has been introduced for preservation and using the all necessary information regarding '(! by the banks through BB website. This system allows the authori)ed users of banks to upload and download their '(! information.

"n terms of article *+,*- of Bangladesh Bank .rder, /0%#, all scheduled banks are sub1ect to submit eekly 2tatement of 3osition as at the of .ff-site 2upervision. This close of business on every Thursday to the 4epartment statement now is submitted through on-line using the web upload service of BB website within o* ,threeworking days after the reporting date which is much more time and labor efficient that the earlier manual system.

The e-5eturns service has been introduced which is 6n .nline 3ortal 2ervice for 2cheduled Banks to submit 7lectronic 5eturns using predefined template for the purpose of 8acro 7conomy 6nalysis through related BB 4epartments.

.nline 7xport 8onitoring 2ystem is used for monitoring export of Bangladesh. Through this service, Banks and 64 Branches of Banks issue 9 reports export report.

Bangladesh 6utomated !learing :ouse ,B6!:started to work by replacing the ancient manual clearing system which allows the inter-bank che;ues and similar type instruments to be to settled in instant manner.

7lectronic

Fund

Transfer

,7FT-

has

been

introduced which facilitates the banks to make bulk payments instantly and using least paper and manpower.

The initiation of 8obile Banking has been one of the most noteworthy advancement in banking. Through this system, franchises of banks through mobile operators can provide banking service to even the remotest corner of the country.

6lmost every commercial bank is now using their own core banking solution which has made banking very faster and efficient. <sage of plastic money has much more increased in daily life transactions. Full or partial online banking is now being practiced by almost every bank.

"nauguration of internet trading in both of the bourses ,427 9 !27- in the country is the most significant advancement for capital market in last several years. 8icro Finance "nstitutions submit their reports to the regulator through the .nline 5eport 2ubmission Tools for 8F"s.

Institutional regarding the institutional development in BB which can be observed below:

Development:

Through the !entral Bank 2trengthening 3ro1ect, there have been a good number of achievements

The implementation of 7nterprise 5esource 3lanning ,753- has been a big step in automation of operational structure of BB. The establishment of 7nterprise 4ata arehouse ,under process- will bring the whole banking

and F" industry under a single network through which data sharing, reporting and supervision

will enter in a new hori)on.

Bangladesh Bank now possesses the most informative and resourceful website of the country regarding economic and financial information.

"nternal networking system with re;uired online communication facilities have been developed and in operation for the officers of BB.

BB has hosted number of international seminars on different economic and financial issues over last several years.

856 was established in #==+ for bringing >?.-8F"s under supervision. For the pro active role of 856, this one sector year, ,8F""456 is has now in a good shape of regarding the steps accountability to regulari)e and this regulation. industry. For abolishing anomaly and fetching discipline in insurance industry, "456 was established in #=//. "n taken number appreciable 6fter the massive crash of local bourses in #=/=-#=//, the executive body of 27! was redesigned in full and some good results have come after that. Regulatory Development:

Banking and F" industries have experienced diversified regulatory development over last few years:

Full implementation of Basel-"" ,"nternational capital ade;uacy standard- accord has been in effect in both banking and F" industry. ?uidelines on 7nvironmental and !limate !hange 5isk 8anagement for banks and F"s have been circulated. 3olicy guidelines on ?reen Banking also have been issued.

?uidelines on 2tress Testing for banks and F"s have been issued which is aimed to assess the resilience of banks and F"s under different adverse situations.

>umber of 3olicy initiatives for Financial "nclusion has been undertaken. Banks have been asked to build up separate 5isk 8anagement <nit for comprehensive and intensive risk management.

Banks have been instructed to create separate subsidiary for capital market operations and capital market operations of banks are now minutely monitored.

2upervision has been intensified to increase the participation of banks in !orporate 2ocial 5esponsibility ,!25-.

For the efficient and timely action of BB, foreign exchange reserve of Bangladesh did not face any adversity during global financial turmoil of #==%-=0.

To meet international standard on 6nti 8oney 'aundering ,68'-(!ombating Financing of Terrorism ,!FT- issues, guidelines for 8oney !hangers, "nsurance !ompanies and 3ostal 5emittance have already been circulated.

27! has updated 3ublic "ssue 5ules, #==+ and 8utual Fund 5ules, #==/. 6part from that, numbers of

68!s, merchant banks and are 8utual Funds are permitted by 27! which has increased the participation of institutional investors. The trend of capital market research has been upward which indicates the potential of analytical investment decision. "nsurance 6ct #=/= was formulated to meet demand of concurrent time for shifting the insurance industry in a better shape. 6part from that, several initiatives have been undertaken by "456 for prohibiting the malpractices in the industry regarding insurance commission, agent, premium etc and corporate governance issues.