The central bank has revised its procedures for strengthening the risk-management system for country’s banks, incorporating newer factors of vulnerability, officials said.
“We’ve taken the latest initiative to cover new risk areas that may help in ensuring stability in the financial sector,” a senior official of the Bangladesh Bank (BB) told the FE.
He also said a risk rating for each bank will be determined depending on the different risks and their mitigation by the bank concerned.
The BB issued a circular in this connection Wednesday and asked the commercial banks to ensure sound risk management in banks through establishing the necessary infrastructure and taking various steps for identification, measurement, monitoring, and control or mitigation of various existing and potential risks.