Move to improve banks' scorecards
The central bank for the first time is formulating a five-year strategic plan to improve performance of the country's banking industry.
“The objective of the plan is to assist banks to develop regulatory and supervisory framework in response to market developments over the next five years,” Bangladesh Bank Governor Dr Atiur Rahman told reporters after a meeting with different banks' managing directors at his office yesterday.
The governor met the banks' chief executive officers to discuss introduction of automated cheque processing system. But all banks are not ready to go for automation at the moment, he said.
“We have reset the deadline to November this year,” Rahman said.
Earlier, the BB set the deadline for August for the automation of cheque processing that will reduce both time and physical efforts from the existing manual system.
“We will go for test trial of the system in October,” said the governor.
On the strategic planning, Rahman said although Bangladesh's banking sector is relatively in a better position compared to the global situation, it needs comprehensive planning to cope with the rapidly changing global behaviour of the financial sector.
The strategy that is likely to be introduced by January next year will also help the BB achieve its goals, he said.
The planning is expected to increase competition and efficiency of the banking sector, the governor added.
“Also it will help banks go for a more 'risk-based' approach.”
Bangladesh's banking sector is comprised of 48 banks -- 30 private commercial banks, nine foreign commercial banks and nine state-owned commercial and specialised banks.
The banking sector is going through adoption of Basel II framework, a more comprehensive measure and standard for capital adequacy and risk management. Under the framework, the banks will have to raise their capital to Tk 400 crore from present Tk 200 crore.
Comments