BB to Form Task Force for Banking Regulatory Simplification

The announcement was made during a roundtable discussion titled "Path to Recovery for the Banking Sector," organized by The Business Standard at its office in Dhaka this morning.

During the session, managing directors from several banks expressed concerns about the cumbersome reporting requirements imposed by the central bank. They pointed out that each month, bank officials are required to sign off on hundreds of reports to be submitted to Bangladesh Bank, adding significant pressure on their operational capacity.

Moreover, the bankers raised concerns over the growing complexity of multiple directives issued by the central bank in recent years, which have created confusion and hindered their ability to make timely, effective decisions.

In response to these concerns, Governor Monsur outlined plans for a task force aimed at simplifying the banking regulatory process. The task force will consist of managing directors from various banks, as well as industry experts, to ensure a comprehensive approach to streamlining regulations.

Additionally, Monsur instructed Selim RF Hussain, chairman of the Association of Bankers, Bangladesh (ABB) and managing director of BRAC Bank, to work closely with the managing directors to gather feedback and suggestions on how the central bank can better simplify its regulatory framework. The recommendations will then be presented to Bangladesh Bank for consideration.

The Governor's initiative reflects a broader commitment to enhancing the efficiency of the banking sector and fostering a more conducive environment for decision-making and growth.