Bangladesh Bank on Tuesday issued risk management guidelines afresh scrapping earlier one against the backdrop of the growing non-performing loans and increasing risk in the country’s banking sector.
The central bank’s off-sight supervision department issued the circular with a view to strengthen banks’ risk management system.
A BB circular issued in this regard on Monday said that the newly guideline would nullify the BB circulars which were issued in this regard on February 15, 2012 and September 9, 2015.
Each bank will have to prepare a comprehensive risk management guideline (CRMG) under the latest guidelines and considering its nature, size and complexities of business activities, said the BB circular adding that the new guidelines would come into effect immediately.
Banks will have to get approval on the CRMG from the board and must submit a copy of the CRMG to Bangladesh Bank, the BB guideline said.
The BB circular also instructed that the banks will have to review the guideline at least once a year for adapting with the changing environment.
Besides, banks must…
