Bangladesh Bank
Deposit Insurance Systems is an institutional initiative of Bangladesh Government for the protection of the depositor's interest. The system works among deposit owners who deposited in scheduled banks.
  • Objectives of DIS: Banks are faced with increased risk, since working with borrowed money and having liabilities to a number of depositors, and a bankruptcy of a single bank could initiate a cycle of instability hitting entire financial system. The Significant objectives of Deposit Insurance Systems in Bangladesh, like in all other countries, are a contribution to the overall financial stability. Moreover, the followings are the special objectives of Deposit Insurance Systems in Bangladesh:
    • Protect small depositors,
    • Enhance public confidence,
    • Enhance stability of the financial system,
    • Increase savings and encourage economic growth,
    • Enhancing more propitious bank services.
  • Legal Framework: Deposit Insurance was first introduced in August, 1984 as a scheme in terms of ''The Bank Deposit Insurance Ordinance, 1984''. In July, 2000 the Ordinance was repealed by an Act called "Bank Amanat Bima Ain 2000 (The Bank Deposit Insurance Act, 2000)". Deposit Insurance Systems in Bangladesh is now being administered by this Act.

Management Structure

  • Trustee Board: For the overall administration and management of the Deposit Insurance Systems (DIS), a Trustee Board was formed as per provisions of the Act. The Board of Directors of the Bangladesh Bank is the Trustee Board for the DIS. The Governor of Bangladesh Bank is the Chairman of Trustee Board. The Trustee Board is authorized to carry out a Fund called Deposit Insurance Trust Fund (DITF). The Deposit Insurance Systems is now being administered and managed under the guidance of the Trustee Board.
  • DID: The Deposit Insurance Department (DID), Bangladesh Bank, has been entrusted to administer the activities of Deposit Insurance Systems in Bangladesh. Under the guidance of Trustee Board, DID formulate the work plans, policies, procedures and guidelines for maintaining Deposit Insurance Systems & managing the Deposit Insurance Trust Fund (DITF) through an operational manual. This Operational manual has been designed to serve that purpose keeping an option to further updates as and when necessary.

Member Institutions

All scheduled banks/commercial banks including the branches of foreign banks functioning in Bangladesh are covered under the Deposit Insurance Scheme by the Bangladesh Bank with effect from 11 August, 1984. Membership is now compulsory for all scheduled Banks as provided under Article # 04 (Ka) & (Kha) of "Bank Amanat Bima Ain 2000 (The Bank Deposit Insurance Act, 2000)".