Through the Central Bank Strengthening Project, there have been a good number of achievements regarding the institutional development in BB which can be observed below:
- The implementation of Enterprise Resource Planning (ERP) has been a big step in automation of operational structure of BB.
- The establishment of Enterprise Data Warehouse (under process) will bring the whole banking and FI industry under a single network through which data sharing, reporting and supervision will enter in a new horizon.
- Bangladesh Bank now possesses the most informative and resourceful website of the country regarding economic and financial information.
- Internal networking system with required online communication facilities have been developed and in operation for the officers of BB.
- BB has hosted number of international seminars on different economic and financial issues over last several years.
MRA was established in 2006 for bringing NGO-MFIs under supervision. For the pro active role of MRA, this sector (MFI) is now in a good shape regarding the accountability and regulation.
For abolishing anomaly and fetching discipline in insurance industry, IDRA was established in 2011. In one year, IDRA has taken number of appreciable steps to regularize this industry.
After the massive crash of local bourses in 2010-2011, the executive body of SEC was redesigned in full and some good results have come after that.
Banking and FI industries have experienced diversified regulatory development over last few years:
Basel-III has been introduced in a phased manner starting from the January 2015, with full implementation of capital ratios from the beginning of 2019.
- Guidelines on Environmental and Climate Change Risk Management for banks and FIs have been circulated. Policy guidelines on Green Banking also have been issued.
- Guidelines on Stress Testing for banks and FIs have been issued which is aimed to assess the resilience of banks and FIs under different adverse situations.
- Number of Policy initiatives for Financial Inclusion has been undertaken.
- Banks have been asked to build up separate Risk Management Unit for comprehensive and intensive risk management.
- Banks have been instructed to create separate subsidiary for capital market operations and capital market operations of banks are now minutely monitored.
- Supervision has been intensified to increase the participation of banks in Corporate Social Responsibility (CSR).
- For the efficient and timely action of BB, foreign exchange reserve of Bangladesh did not face any adversity during global financial turmoil of 2007-09.
- To meet international standard on Anti Money Laundering (AML)/Combating Financing of Terrorism (CFT) issues, guidelines for Money Changers, Insurance Companies and Postal Remittance have already been circulated.
SEC has updated Public Issue Rules, 2006 and Mutual Fund Rules, 2001. Apart from that, numbers of AMCs, merchant banks and are Mutual Funds are permitted by SEC which has increased the participation of institutional investors. The trend of capital market research has been upward which indicates the potential of analytical investment decision.
Insurance Act 2010 was formulated to meet demand of concurrent time for shifting the insurance industry in a better shape. Apart from that, several initiatives have been undertaken by IDRA for prohibiting the malpractices in the industry regarding insurance commission, agent, premium etc and corporate governance issues.