|Department of Financial Institutions and Markets (DFIM) regulates and supervises the Non-Bank Financial Institutions (NBFIs) of Bangladesh. NBFIs are licensed under the Financial Institution Act, 1993 and the Financial Institution Regulation, 1994.
|The key functions of this department are addressed below:
- Issuance of license for setting up of new NBFIs and branches of existing NBFIs under the Financial Institution Act, 1993.
- Formulation of prudential regulations to ensure the soundness of NBFIs.
- Monitoring of the activities of NBFIs to ensure corporate governance.
- Conducting of off-site supervision on NBFIs through collecting, analyzing and monitoring various data/information in regular basis to ensure compliance with policies, regulations and practices by them.
- Assessment of financial and managerial soundness of NBFIs through CAMEL rating and identification of the shock absorbing capacity through Stress Testing.
- Assessment and monitoring of the financial instruments issued by NBFIs, viz the issuance of Zero Coupon Bonds, Asset backed Securitization Bonds etc.
- Implementation of BASEL Accord in NBFIs to ensure Risk Based Capital Adequacy.
At present there are 34 NBFIs in Bangladesh. The contribution of financing activities by NBFIs to the overall economy persistently has been increasing.