---

In a landmark move to modernise regulatory oversight, Bangladesh Bank has unveiled plans to adopt a risk-based supervision (RBS) framework for the country’s banking sector, starting January 1, 2026. The shift aims to enhance efficiency, responsiveness, and transparency in monitoring financial institutions.

Targeted, Risk-Sensitive Oversight
Under the new model, the central bank will evaluate financial, market, operational, legal, and strategic risks on a bank-by-bank basis, allowing interventions tailored to each institution’s specific risk profile. Following promising pilot runs in selected banks, Bangladesh Bank plans a phased rollout beginning July 2025.

Organisational Restructuring to Support Reform
To implement RBS effectively, Bangladesh Bank is restructuring its supervisory framework and creating specialised divisions, including:

Policy and Coordination Division

Data Analytics and Management Division

Technology and Digital Banking Supervision Division

AML & Counter-Terrorism Financing Risk Division

Each bank will have a dedicated supervision team to ensure continuous, proactive monitoring.

Focus on Capacity Building and Digital Transformation
To support the transition, the central bank is launching comprehensive training initiatives for its officials and bank executives, with assistance from international development partners. Additionally, work is underway to establish a new central data platform designed to facilitate real-time risk analysis and data-driven decision-making.

Looking Ahead: Stability and Innovation
Bangladesh Bank expects the new supervision framework to:

Strengthen accountability within the banking sector

Promote financial system stability

Enable technology-driven oversight and innovation

Foster a sustainable, risk-aware banking environment

The central bank has called for active cooperation from industry stakeholders to ensure the smooth and successful implementation of this transformative initiative.