RBS_Presentation for banks in Bangladesh new innovation.pptx

Risk Based supervision for banks in bangladesh

1. Risk-Based Supervision (RBS) Initiatives & Preparedness of IBBPLC For Effective Implementation Dr. M. Kamal Uddin Jasim Additional Managing Director & RBS Focal Point

2. Modern supervisory approach Shifts from compliance to risk Focus on actual risk exposures Higher risk = more monitoring Aligned with global best practice Supports financial stability Overview

3. Objectives of RBS Proactive supervision of banks Identify risks at early stage Efficient use of resources Focus on high-risk banks Strengthen governance & resilience Alignment with Basel & IMF

4. Benefits of RBS Improves financial stability Reduces systemic banking risks Encourages better governance Enhances data-driven supervision Promotes early risk mitigation Supports global credibility

5. Types of Banking Risks Credit & Counterparty risk Market & Liquidity risk Operational & Compliance risk Strategic & Reputational risk Legal & Political risk Emerging risks: Climate, Tech

6. Bangladesh Bank Approach Formed SPCD for RBS oversight Staff training & capacity building Develop automated reporting tools Comprehensive policy documents Risk matrix & supervisory reports Phased pilot program implementation

7. IBBPLC Initiatives Formed RBS Management Committee Created RBS Working Committee Data preparation & submission Coordination across departments Capacity building of staff Board & management oversight

8. Challenges in RBS Data accuracy & availability Limited staff competency System integration issues Cultural shift resistance Standardization of reporting Change management difficulty

9. Recommendations Develop predictive risk models Real-time dashboards & analytics Strengthen audit & controls Define risk appetite & tolerance Integrate RBS in strategies Regular board updates & training