The country’s six major financial regulators will exchange sensitive financial information among them in a bid to ensure financial stability, said officials of Bangladesh Bank.
The decision came from a meeting of the regulators held at the BB headquarters in the capital on September 14.
The regulators are Bangladesh Bank, Bangladesh Securities and Exchange Commission, Insurance Development and Regulatory Authority, Microcredit Regulatory Authority, Registrar of Joint Stock Companies and Firms and Department of Cooperatives, reports The New Age.
‘The central bank is now preparing a coordinated supervision policy in accordance with the internationally recognised policies so that the regulators can exchange sensitive information without conflicting with the existing acts and regulations,’ a BB official told New Age on Sunday.
The official said that the regulators would take final decision on information exchange at their next meeting.
At present, top officials of the regulatory bodies sit for a meeting every three months to share their policies and discuss measures for financial stability under a memorandum of understanding signed in 2012.
The official said that the regulators would exchange financial information among them so that they could take require measure in their respective sector to ensure better stability.
A number of countries are now exercising the practice to protect their financial sector from any unexpected shock, he said.
But, the country’s financial regulators are yet to exchange their information due to absence of a coordinated supervision policy, he said.
Against the backdrop, the six regulators led by the BB formed a coordination committee to prepare a coordinated supervision policy.
The financial regulators of different countries is now following four types of coordinated supervision models which are institutional, functional, integrated and twin peaks.
The country’s regulators have primarily decided to prepare it coordinated supervision policy in accordance with the integrated supervision policy, the official said.
Under the supervision policy, the six financial regulators will give coordinated instruction to the financial sector so that the financial organisations can avoid unnecessary regulatory pressure, he said.
He said that the financial institutions usually face different type of instructions from the regulators that create a burden for them.
Besides, the financial regulators will exchange their opinion among them before making any policy, he said.
He said, ‘Sometimes, a policy of the central bank or another regulator contradicts with each other.
The coordinated supervision policy will ensure that one regulator’s policy will not contradict with that of another regulator, the official added.