Department of Banking Inspection 4

Name & Designation Telephone Email Fax
A.K.M Sajedur Rahman KhanDeputy Governor880-2-9530417880-2-9530479
Joarder Israil HossainExecutive Director880-2-9530419880-2-9530440
Mohammad Mamunul HoqueGeneral Manager (G)880-2-957770188-02-9577702
Mohammad AliGeneral Manager (G)880-2-9530226--

Bangladesh Bank is empowered to regulate and supervise the banking companies and financial institutions of the country (vide Bangladesh Bank Order 1972) .The Department of Banking Inspection-4 (DBI-4) is one of the core departments of Bangladesh Bank, which is entrusted with the responsibility of supervising the performance of domestic Islamic banks, banks established by non-resident Bangladeshis and foreign private commercial banks that are operating in the country with special emphasis on regulatory and supervisory compliances. This department conducts on-site inspections periodically, however on-site surveillance receives more emphasis. In addition, this department also looks after the activities of the islami banking branches of local conventional banks.

Stability and soundness of the countrys financial services industry mostly depends on the smooth operations of the financial system. With the view to ensuring stability in the financial system, DBI-4 examines the books of accounts and related documents/records through on-site inspection of Islamic banks, NRB banks, foreign banks and islami banking branches of conventional banks mainly to ensure the safety of the depositors money.

DBI-4 mainly conducts regular comprehensive inspections on quarterly basis. In addition, the Department conducts risk based and special inspections. The regular comprehensive inspections are conducted in accordance with the Annual Inspection Program prepared ahead of beginning of each calendar year. The frequency of comprehensive inspections, however, depends on the calculation of CAMELS (Capital Adequacy, Asset Quality, Management, Earnings, Liquidity, and Sensitivity to Market Risk) rating of the banks. Generally greater attention is paid to weaker banks based on CAMELS rating.

DBI-4 examines asset quality of the banks on the basis of 31st December and ensures reflection of observation of this inspection in the annual financial statements of the banks. This is ensured through exchanging views in a tri-partite meeting among concerned bank management, external auditors and inspection team before finalization of financial statements.

Review of Internal Capital Adequacy Assessment Process (ICAAP) of banks also done by this department.

Risk-based inspection is conducted to examine the level of compliance of the Core Risk Management Guidelines by the regulated banks. Core risk inspections are done on annual basis that cover risks associated with credit/investment, Internal Control and Compliance, Asset-Liability Management, Information&Communication Technology and Anti-Money Laundering. special inspections are, on the other hand, conductedin addition to routine and regular programs for any special purpose either being instructed by the higher authority, or by the Department by itself to investigate into the issues relating to complains or on self-motivated basis.

Inspection reports are prepared by the inspection teams incorporating their observationsand recommendations are solely meant for compliance by the banks. Ensuring compliance of the recommendations through respective Compliance Unit is one of the core functions of the department.