Written by The Banking Post
Bangladesh Bank is formulating a comprehensive Artificial Intelligence (AI) policy to strengthen security, efficiency, and innovation across the banking sector.
The initiative aims to guide the safe and effective use of AI for fraud detection, risk management, economic forecasting, internal efficiency, and customer service enhancement.
A seven-member team from the central bank’s Information Technology Division has begun work on the policy, which is expected to produce a draft within two months, following global standards. The process is being coordinated by Executive Director Muhammad Zakir Hossain.
As part of the initiative, the central bank plans to develop its own Large Language Model (LLM) — a key move to safeguard national financial data by reducing reliance on foreign platforms.
Officials said the use of AI will help analyse large volumes of economic data for more accurate forecasts on inflation, GDP growth, and foreign reserves, while improving credit, market, and liquidity risk management. It is also expected to accelerate Fintech and digital banking innovation.
The move follows a recent study by the Bangladesh Institute of Bank Management (BIBM), which found that around 60% of local banks lack policies governing AI use in cybersecurity, exposing a major regulatory gap.
The upcoming policy will provide a unified and secure framework for AI adoption across the financial sector, ensuring that technological progress aligns with data safety and national interests.
