Experts for stronger board-level accountability, independent risk management

Banking experts, regulators and veteran bankers yesterday called for stronger board-level accountability, independent risk management and improved asset-quality oversight to ensure financial stability in Bangladesh’s banking sector.
They made the call at a seminar titled “Risk Governance in Banks: Assessing Its Impact on Financial Stability,” organized by the Bangladesh Institute of Bank Management (BIBM) at its auditorium in Mirpur, in the city on Thursday said a press release.
Chairing the seminar, BIBM Director General Dr. Md. Ezazul Islam stressed the need to translate diagnostic assessments into concrete reforms with specific implementation timelines for commercial banks and the central bank.
“Sound risk governance is not merely a compliance exercise; it is an institutional discipline,” he said, emphasizing that banks must ensure board-level understanding of risks, clear ownership by business units, independent scrutiny by risk officers, and effective internal audits and regulatory supervision.
Speaking as the chief guest, Bangladesh Bank Deputy Governor Md. Sarwar Hossain underscored the importance of robust risk governance in maintaining stability across the banking system.
Presenting the keynote paper, BIBM Professor and Director (Training) Dr. Mohammad Tazul Islam said long-term financial stability would remain difficult to achieve without addressing institutional weaknesses that undermine credit discipline and accountability.
The keynote paper, co-authored by BIBM Professors Dr. Prashanta Kumar Banerjee and Mohammad Mohiuddin Siddique and Bangladesh Bank Director (Research) Dr. Mohammad Monirul Islam Sarker, highlighted the need for early corrective action, transparent disclosure of connected-party lending and technology-enabled regulatory supervision.
The discussions also emphasized the importance of independent Chief Risk Officers (CROs) and effective oversight mechanisms to strengthen risk management practices in banks.
BIBM Professor and Director (Research, Development and Consultancy) Md. Shihab Uddin Khan delivered the welcome address.
The designated discussants included BIBM Supernumerary Professor Md. Ali Hossain Prodhania, Shahjalal Islami Bank PLC Managing Director Mosleh Uddin Ahmed, and Dhaka University Department of Banking and Insurance Professor Dr. Md. Main Uddin.
BIBM reaffirmed its commitment to evidence-based research, professional capacity building and engagement with Bangladesh Bank and industry stakeholders to help develop a more resilient banking system.

