A stable financial system underpins sustainable economic growth by ensuring smooth credit flows, protecting deposits, and facilitating reliable payment services. Given the increasing interconnectedness of domestic and global finance, disruptions in one institution can quickly spread to strengthen resilience and monitor systemic risks, Bangladesh Bank has established the Financial Stability Committee (FSC) as its apex macroprudential authority across the system. To strengthen resilience, monitor systemic risks and safeguarding financial stability, Bangladesh Bank has established the Financial Stability Committee (FSC) as its apex macroprudential authority.

The FSC is mandated to assess vulnerabilities, coordinate regulatory actions, and approve macroprudential policy measures.

The Governor chairs the Committee, which also includes all Deputy Governors, the Chief Economist, the Executive Director in charge of Financial Stability Department (FSD), and the Directors of nine relevant departments as its members. The Director (FSD) acts as Member Secretary, with the FSD serving as the Secretariat. Meetings are held quarterly, with provision for extraordinary sessions when needed. The inaugural meeting was convened on July 9, 2025.

Key Functions of the FSC are to:

• Monitor and discuss potential threats to financial stability;
• Assess risks and vulnerabilities and recommend mitigating policies;
• Review the current state and outlook of the financial system;
• Coordinate regulatory and supervisory issues across departments;
• Collaborate with domestic and international regulators on stability concerns;
• Approve macroprudential measures to manage systemic risks.

The FSC thus serves as a high-level platform to ensure resilience, safeguard stability, and enhance policy coordination within Bangladesh’s financial system.