Dashboard being developed to address financial sector systemic risk

The government is developing the Bangladesh Systemic Risk Dashboard (BSRD) to address financial systemic risk.

Finance Minister AHM Mustafa Kamal, in his budget speech, said "The BSRD is being developed by incorporating quantitative and qualitative characteristics and trends of key indicators to facilitate the identification and management of systemic and other risks in the financial sector.

"Preparation of a Financial Projection Model for the same purpose is in progress. Banks and other institutions in the financial sector must have in-built competencies and skills and advanced preparedness and recovery plans to deal with adverse situations."

He said the work of drafting the Bank Companies (Amendment) Act 2023 is on-going, while the issues of risk assessment and management in the financial sector are being appropriately incorporated in this Act.

"Banks have already been instructed to identify their potential procedural and other weaknesses/risks and submit a recovery plan to Bangladesh Bank along with a transition strategy. The government is formulating the 'Secured Transaction Act, 2022' to increase the use of intangible assets as collateral."