Bangladesh Bank (BB) Governor Dr Ahsan H Mansur on Monday (July 7) said that political interference in the past has exposed the country’s financial sector to risks, and called on political leaders to act with integrity to prevent future looting.

He made the remarks during a press conference on the progress of introducing Risk-Based Supervision (RBS) in the banking sector. 

The event was held at the Jahangir Alam Conference Centre of the central bank in Dhaka.

“To restore discipline in the banking sector, Bangladesh Bank must have operational autonomy,” the governor said, adding that proposals to amend the Bank Company Act have already been placed to facilitate this.

Dr Mansur announced that Bangladesh Bank will fully implement Risk-Based Supervision from January next year. As part of preparations, pilot implementation has already been completed in 20 banks, and the remaining banks will be covered by June this year.

Regarding the planned merger of six banks, the governor said asset evaluation has been completed. The merger process is moving forward, but if any bank does not wish to merge, the central bank will seek their formal explanation.

“If a bank can present a clear and viable plan, Bangladesh Bank will consider it,” he added.

Deputy Governors Nurun Nahar and Md Habibur Rahman, along with other senior officials of Bangladesh Bank, were also present at the briefing.

MSK/