Cenbank formulates regulation on appointing int'l orgs for bank audits

The Bangladesh Bank has formulated a special regulation allowing local banks to appoint qualified international consulting organisations to conduct comprehensive assessments of their financial health. 

'The Special Regulations of Bangladesh Bank, 2024' was approved at the 438th meeting of the board of directors of the central bank, said BB Spokesperson Hosne Ara Shikha.

The central bank, in letters to the managing directors and chief executive officers of all banks in the country today (22 December), said this regulation will come into effect immediately.

According to the regulation, international consulting organisations will conduct in-depth audits of banks and suggest appropriate remedial measures necessary in the public interest and for improvement of the state and condition of banks and bank policies.

The regulation states that the consulting firm will diagnose the health of banks, including conducting reviews of asset quality, corporate governance, policies of the bank concerned, procedures, processes, compliance with laws and regulations, and any other assessment as and when necessary.

The new regulation also states that the Bangladesh Bank will assign a designated department to coordinate the activities of the international consulting firm with the scheduled banks in relation to the comprehensive assessment.

The consulting firm will submit a report to the governor of the central bank as per the contract documents, it said.

The governor will submit the report to the board to take necessary measures in accordance with the applicable laws, it added.