BB, BBTA & BIBM

INSPIRED aims to develop SMEs (Small and Medium Sized Enterprises) in Bangladesh and a SME Competitiveness Grant Scheme is a major component of the Programme. Part of its work is with the Bangladesh Bank Training Academy (BBTA) and the Bangladesh Institute of Bank Management (BIBM).

Brief Overview of Bangladesh Bank 

Bangladesh Bank (BB) is the Central Bank and the regulatory body for the country’s monetary and financial system. It was established in Dhaka as a body corporate under the Bangladesh Bank Order, 1972 (P.O. No. 127 of 1972) with effect from 16th December, 1971. At present, it has nine offices located at Motijheel, Sadarghat, Chittagong, Khulna, Bogra, Rajshahi, Sylhet, Barisal and Rangpur in Bangladesh; total manpower stood at 4926 (officials 3910, subordinate staff 1016) as on December 31, 2011.

BB performs all the core functions of a typical monetary and financial sector regulator, and a number of other non-core functions. The major functional areas include:

  • Formulation and implementation of monetary and credit policies. 
  • Regulation and supervision of banks and non-bank financial institutions (NBFIs), promotion and development of domestic financial markets. 
  • Management of the country’s international reserves. 
  • Issuance of currency notes. 
  • Regulation and supervision of the payment system. 
  • Acting as the banker to the government. 
  • Money Laundering Prevention. 
  • Collection and furnishing of credit information, as appropriate and required. 
  • Implementation of the Foreign exchange regulation Act. 
  • Managing a Deposit Insurance Scheme.

For banks and financial institutions in Bangladesh.

BB’s main focus is to provide precise prudential regulatory, risk management and disclosure framework to protect solvency and liquidity of individual institutions and stability of the overall financial system, acting as lender of last resort if and when needed. 

The BB issues regulations and enforces compliance specifically on all banking activities specifically on capital adequacy, asset classification, income recognition and provisioning, large exposure and risk management. The BB must maintain external sector viability with exchange rate stability and adequate foreign exchange reserves. The BB must also provide a secure and quick payment settlement system to promote and support development of new financial products, services and instruments. 

To visit BB Website click here: www.bb.org.bd

Bangladesh Bank Training Academy (BBTA)

Since the commencement of the project, regular meetings of the key officials within BBTA have been held with individual executives or as a group. The objective was to listen and share common views on the INSPIRED programme and to add value to BBTA but, more importantly, to the banking industry.

The Bangladeshi banking industry is supposedly facing some serious issues in negative capitalization, bad debts in specific sectors of lending including in the SME sector. New supervision changes are required by the Bangladesh Bank, the central bank monetary authority, the individual banks to avoid negative compliance issues covered specifically by the Central Bank’s laws and Regulations. Compliance of the published Laws and Regulations by the banking industry becomes a serious issue for any banking system in any country.

In the discussions, it became important that every BBTA executive understands the objective of the SME finance growth objective for Bangladesh. 

In SME financing activities of the banks to influence the growth in the sectors, there needs to be specific skills and experience levels within the banking industry to influence the growth within the SME sectors. However, there also needs to be experience specifically in identifying the potential losses in the SME lending activities. The banking industry’s compliance of the central bank’s laws and regulations become an important focal point for the banking industry and specific changes must occur to prevent losses but also to encourage growth in all lending sectors of the banks and particularly in the SME sectors.

BBTA is a training division of the Bangladesh Bank. All members of BBTA are employed by Bangladesh Bank over a period of time.

The Organisational Structure of BBTA and BB must be clearly understood and all training activities identified to fit into the objectives of the EU programme covering SME banking capabilities within the banking industry to promote growth – and to prevent losses. But more importantly, to influence the growth and activities of the SME industries as a focal point for the reduction of poverty in Bangladesh – the government objective.

Bangladesh Institute of Bank Management (BIBM)

Bangladesh Institute of Bank Management (BIBM) was established in 1974 to provide training to officials of banks and financial institutions in Bangladesh to strengthen and update their skills. It is a membership organisation for banks and financial institutions but since 1974 many of them have set up their own training establishments to service much of their training needs, particularly for junior level officials. Therefore BIBM has modified its approach and broadened its operations to cover providing education in the form of Masters in Bank Management (MBM) and Evening MBM (EMBM), carrying out research in finance and banking, holding seminars and round table discussions or aiding banks with recruitment as well as issuing regular bulletins.

But even with those complementary activities training is still the key focus of the organisation but now BIBM supplies training only to senior and mid-level officials of banks and financial institutions, mainly in areas where its members have common interests.

Since its establishment BIBM has trained over 65,000 officers of banks and financial institutions and 570 MBM graduates passed out from BIBM during the period 1996-2011, almost all of whom have joined the banking profession. In addition, 102 Evening MBM graduates have passed out from BIBM since 2006.

Current courses and workshops include:

  • Risk Management and Capital Adequacy
  • Consumer Financing in Bangladesh: Status, Challenges and Potentials
  • Strategic Human Resource Management in Banks

Since its establishment BIBM has trained over 65,000 officers of banks and financial institutions and 570 MBM graduates passed out from BIBM during the period 1996-2011, almost all of whom have joined the banking profession. In addition, 102 Evening MBM graduates have passed out from BIBM since 2006.

To visit BIBM Website click here: www.bibm.org.bd