Department of Financial Institutions and Markets   gm.dfim@bb.org.bd

Name & Designation	Email	Telephone	Fax
Md. Zakir Hossain ChowdhuryDeputy Governor	mzhossain.chowdhury@bb.org.bd	880-2-9530705(O)	--
Md. Saiful Islam KhanExecutive Director	msi.khan@bb.org.bd	880-2996636670(O)	02996636671
Goutam Kumar GhoshDirector (DFIM)	goutam.ghosh@bb.org.bd	--(O)	--

Department of Financial Institutions and Markets (DFIM) regulates and supervises the Finance Companies (FCs) conducting financing business in Bangladesh. FCs are licensed under the ফাইন্যান্স কোম্পানি আইন ২০২৩ (the Finance Company Act, 2023). The objectives of the department are to issue prudential regulations and guidelines, monitor risk level, enhance financial soundness and ensure good corporate governance of FCs through prudential off-site supervisory techniques with the aim of promoting depositors' confidence and ensuring discipline and stability of the financial system.

The key functions of this department are addressed below:

1. Issuance of license for opening of new FCs and new business center of existing FCs.
2. Drafting and review of financing statutes. Monitoring the maintenance of statutory reserve requirements and key asset-liability management ratios of the FCs.
3. Setting criteria for internal control and risk management system of FCs and monitoring thereof.
4. Prescribing Criteria for corporate governance and insider lending and monitoring thereof.
5. Determination of capital adequacy requirements, asset classification and provisioning standard . Monitoring capital adequacy of the FCs.
6. Determination of accounting standards and disclosure requirements for FCs.
7. Monitoring of law suits lodged by and against FCs relating to recovery of loans.
8. Attending to works relating to development of priority/special sectors of the economy.
9. Issuance of directives and compliance requirements as and when required under the Finance Company Act, 2024.
10. Assessing risk levels and financial soundness of the scheduled banks through the CAMELS rating system. Monitoring the profitability and interest rate spread of the banking sector.
11. Analyzing the financial health of the FCs through the preparation of diagnostic review report (DRR) and quarterly review report. Reviewing the minutes of meetings of the Board of Directors and its committees to ensure compliance of existing acts, policies, circulars, guidelines.
12. Analyzing quarterly unaudited financial statements and yearly audited financial statements to measure the overall financial health and identify weak areas to ensure the financial stability of the FCs.
13. Assessing and monitoring the overall level of credit, deposit, investment, advance/investment-to-deposit ratio of the FC sector.
14. Monitoring the risk management activities of banks and determining the Comprehensive Risk Management Rating of FCs in Bangladesh.
15. Monitoring the capital market exposure to assess risks and ensure the financial stability of the FCs.
16. Monitoring the large-loan portfolio of the FCs following the respective laws, rules, regulations, and circulars.
17. Monitoring the public sector deposit and credit as well as sector-wise loans and advances of the FCs.
18. Effecting disciplinary action against Board of Directors/CEO of FCs as per the Finance Company Act, 2023.