New division under finance ministry
The government has created a new unit of the finance ministry -- Bank and Financial Division -- for further devolution of the vital ministry's function.
This is the fourth division under the ministry. The other three divisions are Finance Division, Internal Resources Division and Economic Relations Division.
As planned, the new division is likely to be manned by 82 officials and employees.
The division will oversee the credit and interest rate policies of the commercial banks, issue guidelines and policy directions for insurance sector, monitor and regulate the share market and review investment policies and programmes of the government.
With the new division in place, the workload of the Finance Division will decrease, while the government's interventions in banking and insurance sectors, Securities and Exchange Commission would increase.
Prime Minister Sheikh Hasina has recently instructed the establishment ministry and the finance ministry to set up a separate and new banking division under the finance ministry.
Sources said a state minister is likely to be appointed “soon” for the new division,
World Bank has long suggested the government vest regulatory authority over banks and financial institutions in Bangladesh Bank, instead of the finance ministry.