Financial Institutions Inspection Department
|Name & Designation
|Kazi Sayedur RahmanDeputy Governor
|Md. Sirajul IslamExecutive Director
|Md. Abdul HalimDirector (FIID)
Bangladesh Bank is empowered to regulate and supervise the non-bank financial institutions of the country vide Bangladesh Bank Order 1972 [article 7A (f)] and section 20 of the Financial Institutions Act, 1993. Financial Institutions Inspection Department (FIID) is entrusted with the responsibility of conducting on-site inspection in the non-bank financial institutions registered in Bangladesh.
Currently 35 financial institutions (FIs) are licensed from Bangladesh Bank. All these financial institutions are inspected in a regular basis on different criteria by Financial Institutions Inspection Department. Bangladesh Bank undertakes on-site regular (FICL & Comprehensive) inspection of financial institutions on the basis of calendar year to assess their financial health, evaluate their performance in terms of quality of asset, capital adequacy, earnings, liquidity position, management as well as internal control systems. All of these concerns are of supervisory model to protect the interest of depositors and other stakeholders of financial institutions.
FIID examines asset quality of the financial institutions on the basis of 31st December and ensures reflections of observation of this inspection in the annual financial statements of the FIs. This is ensured through exchanging views once in a year in a tri-party meeting of concerned FI management, external auditors and inspection team, before finalization of financial statements.
In addition, financial institutions are compelled to follow core risk management guidelines. This department conducts risk-based inspection (core risk) to examine the level of compliance of the core risk management guidelines and observe the attribute of the components and evaluates the grading of each component of the regulated FIs. Core risk inspections are carried out on annual basis that cover risk associated with credit, internal control & compliance, asset-liability management and information & communication technology security.
Besides, few special inspections are also carried out to oversee any special issues either instructed by the higher authority, or receiving any complain from stakeholders or by the department itself to investigate into any un-usual issue lies with any FI/Branch under its jurisdiction. The investigative part of the department's work that is done to resolve different discontents aroused.
Inspection reports are prepared by the inspection teams incorporating their findings and recommendations are solely meant for compliance by the FIs. Varying on circumstances, supervisory letters are issued to the FIs highlighting the major areas of supervisory concern that need immediate rectification or holds supervisory discussions to ensure drawing up of specific, time-bound and achievable action plan that can be monitored. All these are followed up vigorously through a continuous compliance on the vested agendas. Specific officer is assigned for specific FI to monitor the state of compliance. The department also formulates operational inspection policy as and when required.