Mirpur:Banking experts, regulators, and veteran bankers have called for increased board-level accountability, independent risk management, and enhanced asset-quality oversight to ensure financial stability in Bangladesh.
According to Bangladesh Sangbad Sangstha, this call was made during a seminar titled 'Risk Governance in Banks Assessing Its Impact on Financial Stability,' organized by the Bangladesh Institute of Bank Management (BIBM) at its auditorium in Mirpur.
Dr. Md. Ezazul Islam, BIBM Director General, chaired the seminar and emphasized the necessity of translating diagnostic assessments into concrete reforms with specific implementation timelines for both commercial banks and the central bank. He remarked that sound risk governance should be viewed as an institutional discipline rather than merely a compliance exercise, highlighting the need for board-level understanding of risks, clear ownership by business units, independent scrutiny by risk officers, and robust internal audits and regulatory supervision.
Md. Sarwar Hossain, Deputy Governor of Bangladesh Bank, who was the chief guest, stressed the importance of strong risk governance in maintaining stability within the banking system.
The keynote paper, presented by Dr. Mohammad Tazul Islam, BIBM Professor and Director (Training), pointed out that achieving long-term financial stability would be challenging without addressing institutional weaknesses that affect credit discipline and accountability. Co-authored by BIBM Professors Dr. Prashanta Kumar Banerjee and Mohammad Mohiuddin Siddique, along with Bangladesh Bank Director (Research) Dr. Mohammad Monirul Islam Sarker, the paper underscored the necessity for early corrective action, transparent disclosure of connected-party lending, and technology-enabled regulatory supervision.
Discussions at the seminar also highlighted the critical role of independent Chief Risk Officers (CROs) and effective oversight mechanisms in strengthening banks' risk management practices. Md. Shihab Uddin Khan, BIBM Professor and Director (Research, Development, and Consultancy), delivered the welcome address.
The seminar's designated discussants included BIBM Supernumerary Professor Md. Ali Hossain Prodhania, Shahjalal Islami Bank PLC Managing Director Mosleh Uddin Ahmed, and Dhaka University Department of Banking and Insurance Professor Dr. Md. Main Uddin. BIBM reiterated its commitment to evidence-based research, professional capacity building, and collaboration with Bangladesh Bank and industry stakeholders to foster a more resilient banking system.