Financial Sector Support Project: Banking Supervision

Bangladesh Bank (BB) has undertaken the Financial Sector Support Project (FSSP) with the financial assistance of International Development Association (IDA) of the World Bank in order to maintain the stability and efficiency of the financial system of Bangladesh. One of the major objectives of FSSP is to strengthen the supervisory capacity of BB. BB recognizes that sound regulatory and supervisory framework, and effective & efficient supervision are essential for achieving and maintaining financial sector stability and ensuring a safe and sound banking system. Bangladesh Bank would like to review its current system of banking supervision and consolidate and streamline its supervisory departments. The migration from conventional supervision to a risk-based supervision approach in discharge of its responsibility will enable BB to pursue its mandate more effectively and efficiently. Risk based integrated supervisory system (RISS) would involve changing bank governance, ensuring accuracy of financial statements, improving internal audits, enhancing supervisory capacity & resources and conducting high-level banking sector analysis. Besides, a corrective and remedial action policy, including a Prompt Corrective Action (PCA) policy would be developed for the financial system of the country. For the avoidance of doubt, the definitions set by the Basel Committee on Banking Supervision (BCBS) should be used for terms used in this document.


Develop a Bangladesh Bank supervision department that performs in accordance with best practices and international standards for ensuring the safety and soundness of the banking sys-tem, focusing on risk-based banking supervision, and corrective action and remedial powers and actions policy, including prompt corrective action in relation to banking supervision.

Services provided include, but are not limited to:

  1. Risk-Based Supervision (RBS):Roadmap to introduce effective RBS in line with BCBS recommendations (including but not limited to Pillar 2)
  2. Supervisory organization and governance
  3. On and off-site examination
  4. Corrective and sanctioning powers
  5. Knowledge transfer – Training
  6. Corporate governance and risk management
  7. Operational and cyber risk
Asia (excl. CIS)
Project number: 
2019-06-01 to 2020-09-30
World Bank