BM Desk : Dr. Ahsan H. Mansur, the governor of the Bangladesh Bank, announced Monday that the country’s banking industry will begin formally implementing the risk-based supervision (RBS) system in January 2026 with the goal of bringing about significant changes in the way banks are regulated and supervised.

He stated that the RBS system, which is currently in use in many economies, including neighboring India, would take the place of the conventional compliance-or directive-based model during a press conference at the central bank offices in the capital.
In his inaugural remarks, the governor stated that “risk-based supervision is forward-looking and anticipatory, rather than reactive.”

The central bank has been working on RBS implementation for the past two years, he said.

A pilot project involving 20 commercial banks has already been carried out, and the remaining 41 would be brought under it by December 31, 2025, he said.

“We expect to fully implement RBS from January 1, 2026, which will ensure qualitative transformation in the banking industry,” Dr Mansur said.

He noted that 12 dedicated working groups, comprising officials of different strata at the central bank, have been formed to oversee and coordinate the implementation.

A standard response format is being developed and would be shared with all banks. Responses submitted by banks would be handled through an automated system, said the governor.

“For the banks that are still not ready to respond to this new framework, they will prepare themselves within the next six months,” he said, adding, “We aim to ensure 360-degree supervision in the banking sector.”

He also disclosed that the Bangladesh Bank intends to implement International Financial Reporting Standard 9 (IFRS-9) throughout the banking sector by January 2028, superseding the previous IFRS-39.

However, he recognized that the 2028 deadline is “ambitious,” pointing out that numerous countries have required four years or longer to completely adopt IFRS-9 due to its intricacies and breadth.

In response to inquiries from reporters regarding political interference in bank loans and financial fraud, Dr. Mansur underscored the necessity for a change in mindset at the political level.

“There must be changes in the political culture to address the root causes of banking irregularities,” he stated.

He highlighted the significance of increased autonomy for the Bangladesh Bank, asserting, “We will approach the government to enhance the central bank’s independence to protect it from political pressures.”

“Political parties have lessons to learn from the current condition of the banking sector,” he continued. “If these lessons are not absorbed by political leaders, there is a risk that they will encounter the same fate as those who are currently in exile.”

In addressing worries about the appointment of independent directors to banks, the governor indicated that the central bank supports a model where over 50 percent of bank directors are independent.

“A pool of qualified independent directors will be established, and banks will be invited to select from this list,” he mentioned. “This aims to shift away from the current practice where banks appoint relatives or acquaintances as so-called independent directors.”

Concerning the asset quality review of six struggling banks, Dr. Mansur remarked that the results are disappointing.

“Their current assets are very weak. If they can persuade us with robust plans for recovery, we may reconsider our positions,” he stated.

He noted that the chief executive officers of banks had met with him prior to the press conference and welcomed the decision to implement RBS.