Risk based supervision in banks from next January: BB

Bangladesh Bank (BB) Governor Dr Ahsan H Mansur has said that Risk Based Supervision (RBS) in all banks will begin from January 1, 2026 to ensure a sound, resilient, and future-ready financial system.

The BB governor said this while speaking at a press conference at the central bank headquarters in the city on Monday. 

“The initial phases of the RBS framework have been successfully piloted with a number of banks. A full rollout under the pilot programmes to all 61 scheduled banks is scheduled to be started by July 2025. BB will implement RBS across all scheduled banks starting from January 1, 2026,” he said.

Ahsan H Mansur said BB is pleased to announce a major restructuring of its regulatory framework for bank supervision to enhance efficiency, strengthen oversight, and align with international best practices. 

“A comprehensive RBS framework is in process of development including policy documentation, risk matrix and model supervisory report. This framework will enable a more targeted and effective approach to manage inherent risks such as credit, market, operational, legal and regulatory and strategic risks,” he added.

To support the rollout of the RBS framework, he said, the central bank is undergoing a comprehensive organizational restructuring. 

“This includes the formation of bank-specific team focused several bank supervision departments along with some specialized departments, such as the Supervisory Policy and Coordination Department, Supervisory Data Management and Analytics Department, Technology Risk and Digital Banking Supervision Department, and ML/TF Risk Supervision Department,” he added. 

He mentioned that a new Rationalized Input Template (RIT) and a centralized supervisory dashboard are being developed to support data-driven supervision. 

These efforts are focused on integrating existing systems and building a unified supervisory data management platform to enhance analytical capability and decision-making, he added.

He said a standardized supervisory cycle has been introduced, covering risk assessment, planning, supervisory engagement, intervention, and follow-up communication. 

This structured process will improve the consistency and effectiveness of regulatory actions, he added.

To facilitate smooth transition to RBS, he said, a meeting was held today with BB Senior management, concerned Executive Directors and Directors to discuss the restructuring process and the corresponding implementation timeline.