Bangladesh Bank Training Academy Journal

Abstract

This paper discusses some key issues of financial stability and supervision in general and in the context of Bangladesh financial system. In this connection, the paper focuses on different attributes of financial stability, microprudential and macroprudential approaches of bank regulation and supervision used to address procyclicality in the financial system, and addressing of system risk well ahead of time. Finally the paper outlines the recent initiatives of Bangladesh Bank towards maintaining financial stability. It is expected that the paper would promote informed discussion on key issues of financial stability and supervision of financial institutions and make room for further study on this area.