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Saturday | January 17, 2026 | Dhaka

BB to introduce first AI policy in banking sector by December

Business Desk :

The Bangladesh Bank is set to introduce a comprehensive policy on the use of artificial intelligence (AI) in the country’s banking sector by December, marking the first such initiative by a government institution.

A seven-member special working team has been formed to draft and implement the policy, with full guidelines expected next month. The team leader, ICT Division-1 Executive Director Zakir Hasan, told the media, “While AI enables significant benefits, uncontrolled use can lead to security risks and unethical practices. This policy aims to ensure that AI use in the banking sector and at Bangladesh Bank remains safe, ethical, and regulated.”

Under the new framework, the central bank plans to implement its own large language model (LLM) AI system to prevent cross-border data transfer risks. “When data goes to foreign servers or networks, risks arise.

Our in-house AI will mitigate these risks effectively,” Zakir explained.
The policy is expected to enhance economic forecasting, including predictions on inflation, GDP growth, and foreign currency reserves. AI will also help prevent fraud and money laundering by analysing transaction patterns to detect unusual activity more quickly and accurately.

Additionally, AI will support monitoring of credit, market, and liquidity risks, enabling more data-driven risk management. Its integration into fintech and digital banking initiatives is expected to improve customer-focused, safe, and efficient banking services.

Data from the Bangladesh Institute of Bank Management (BIBM) shows that 60 percent of banks currently lack an AI cybersecurity policy, while 40 percent have one in place.

AI is not incorporated in the operational policies of 68 percent of banks. Research indicates that 69 percent of banks are partially prepared, 11 percent are nearly ready, and 11 percent are fully prepared to implement AI. Only 5 percent of banks currently use AI in disaster recovery planning, leaving 95 percent without AI deployment in this area.