BB to ask banks to submit monthly data of branches
To also direct NBFIs, money changers to get ready by DecAKM Zamir Uddin
All branches of scheduled banks, non-bank financial institutions and money changers will have to complete preparation by this year in submitting their monthly financial data to Bangladesh Bank in a bid to avoid financial scams and corruption, said officials of the central bank.
As part of the move, the BB had already introduced an integrated supervision software in October last year to bring all branches of the banks, NBFIs and money changers under a web-based monitoring system to ensure sustainable development of its supervision system, they said.
The BB will issue a fresh circular to all banks this month to submit their financial report through the BB’s web-based software after which it (central bank) will issue separate circulars to NBFIs and money changers, a BB official told New Age on Wednesday.
The BB now conducts the on-site inspection of the largest branches of the banks and NBFIs on routine basis, mainly quarterly or annually.
The BB also inspects the branches of the banks and the NBFIs when it get allegation against them.
After implementing the financial reporting system on monthly basis, the central bank will inspect any of the branches of the banks, the NBFIs and the money changers if it finds out any anomaly against them through its integrated supervision software.
The BB will train up 15,000 officials of the banks, the NBFIs and the money changers within this year to educate them about the ISS reporting system of the central bank.
The central bank has organised a 14-day workshop beginning February 4 at the BB headquarters in the capital in which it will train up around 1,200 officials of different banks.
The BB will train at least two officials of every branch of the banks, the NBFIs and the money changers.
In the first phase, the authorised dealer branches of all banks will have to submit their monthly financial report since June 2014, he said.
The head office of the banks will have to submit data about their capital position, local and foreign documentary bill purchase related statement, treasury and foreign exchange-related information, and loans- and advances-related report.
Besides, the head office of the banks will also have to submit the data about their inter-bank transaction, repurchase agreement, reverse REPO, special REPO and liquidity support.
Under the process, the central bank will monitor their money market for the first time.
The branches other than head office of the banks will have to submit data about their loans and advances, cash and vault management, and foreign exchange.
With the new initiative, the BB aims at bringing the money changers under a well disciplined situation.
The BB official said that the central bank had recently faced huge criticism due to the recent financial corruption including Hallmark Group and Bismillah Group scams with the different banks.
Under the circumstances, the central bank has set up an electronic monitoring system named ‘Dashboard’ to avoid the foreign exchange-related scam, he said.
BB executive director Mohammad Naushad Ali Chowdhury told New Age on Wednesday that the central bank would train up more than 15,000 employees of the banks, NBFIs and money changers so that they would be able to submit report to the central bank accurately.
He hoped that the financial scam and corruption would decrease in the financial sector in the coming months due to the central bank’s new supervision system.
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