Upload
mahfoz-kazol
View
225
Download
0
Embed Size (px)
Citation preview
8/11/2019 Central Bank Strengthening Project- Bangladesh Bank
1/18
25/05/20
PresentationonCentralBank
Strengthening
Project
(CBSP)
an
its
impact
on
goo
governance
Presentedby
Md.Mezbaul Haque
DeputyGeneralManager,CBSP
Backgroundof
the
Project
Bangladesh Bank started its operation as thecentral bank of the country in 1972 with 11
an s
Bangladesh Bank supported these institutions,government and the nation as well with atotal manpower of around 2000
Over the last few decades, the size of
Bangladesh Economy has grown to manifoldswhich essentially generated enormouseconomic activities in the country which isdepicted in the following table
8/11/2019 Central Bank Strengthening Project- Bangladesh Bank
2/18
25/05/20
2003 2012
No.OfBanks 49 47
NumberofFIs 28 30
Number ofMone Chan ers 236
No. ofMFI 1381 631
GDP(inCrore Taka) 250182 384885
Total Credit(inCrore Taka) 107568 474004
Export (inCrore Taka) 40581 144432
Import nCrore Ta a 64257 240028
Remittance(inCrore Taka) 19869 83005
Total Manpowerofthe
centralbank
5461 4913
Graphshowingchangesindifferenteconomicactivities
8/11/2019 Central Bank Strengthening Project- Bangladesh Bank
3/18
25/05/20
Supportingthesehugeeconomicactivitieswithreduced
level
of
manpower
strength
is
becoming
abigchallengeforBangladeshBank
Forinstances,PADpaymentattimesneedtopay15500governmentcheques inaparticulardatespeciallyatthebeginningofthemonthwhichusuallyneedtobedisposedbetween12to6pm
Ifittakeoneminutetoprocessacheque,itwill
requireat
least
258.33
man
hour
which
requires
atleast43personstocompletethesame
InCIB
we
used
to
receive
6000
request
daily
Wehadtheoptimumcapacityofdisposing
4000reportsperday
Therefore,everydaywehadabacklogof
2000whichcreatedatimelagofoneand
halfmonthforobtainingCIBreport
BBfacedsimilarsituationinmanyofits
functionalitieslike
sale
and
reimbursement
ofsavingscertificate,clearinggovernment
receipt,vaultoperationetc
8/11/2019 Central Bank Strengthening Project- Bangladesh Bank
4/18
25/05/20
Delay/time
lag
in
processing
such
transactions
alwayscreatetheopportunitiesforunfair
prac ces
Ontheotherhandanymistakesinthesehuge
volumeoftransactionsmadethetasksof
reconciliationalmostimpossible
operationwithunmatchedfinancial
statementsof
BB
for
one
and
half
moths.
Asaresultboththeinternalandexternal
governancebecamearealchallengeforBB
Inordertofacethesechallenges,automation
ofitsbusinessprocessesbecameinevitableto
improvetheoverallefficiencyofthebank
Consideringthesechallenges,BBdecidedto
ofitsbusinessprocesseswiththefinancial
assistancefromIDA/Worldbankin2003
8/11/2019 Central Bank Strengthening Project- Bangladesh Bank
5/18
25/05/20
TheProject
Theproject
comprises
several
components
whereweutilizedtheservicesofdifferent
Counsel,AMLAdvisor,ModernizationExpert,NationalandInternationalHRAdvisors,BankSupervisionExpert,ChangeManagementAdvisoretc.
reviewingtheexistingrules,regulations,acts,
policies,manuals
and
procedures
Recommendationshave
been
made
for
required
modificationsandupgradationsinordertomakethembefittingwiththecurrentrequirementofthefinancialsectorofthecountr
IncontinuationofthatMoneyLaunderingPreventionAct,CounterFinancingTerrorismActhavealreadybeenamended.AmendmentshavebeenproposedforBankCompaniesAct,FinancialInstitutionsAct,ForeignExchangeRegulationAct
IslamicBanking
Guidelines,
Risk
Management
Guideline,StresstestingGuideline,ForeignExchangeGuidelines,SupervisionManualhavebeenprepared/revisedandnowinoperation
8/11/2019 Central Bank Strengthening Project- Bangladesh Bank
6/18
25/05/20
APolicyAnalysisUnit(PAU)hasbeenformedand
nowin
full
operation
as
aregular
part
of
the
organization.
hasbeenintroducedconsideringbothworkandcompetencyofanemployee
TNAandtrainingpolicyhavebeenpreparedandimplementedinthebank
withAITandBankofThailandforHRD
Theseinitiatives
have
made
significant
impact
on
internalandexternalgovernanceofBB
Theothermajorcomponentsoftheprojects
arerelatedtotheautomationofbusiness
processesofthebank
Theobjectiveofthislargescaleautomation
initiativesistoenhancetheefficiencyofthe
centralbankandthegovernanceofthe
Theseautomationinitiativesarebeing
implementedunderdifferentprojectsofBB
8/11/2019 Central Bank Strengthening Project- Bangladesh Bank
7/18
25/05/20
The
major
automation
initiatives
undertaken
by
BBarefollowings:
SettingupLAN WAN,InternetandIntranet
EnterpriseResourcePlanning(ERP)
BankingApplicationPackage
EnterpriseDataWarehouse(EDW)
National Pa ment Switch NPS
SystemforMoneyLaunderingPrevention
Departmentto
capture
Cash
Transaction
Reports
andSuspiciousTransactionReport
BangladeshAutomatedClearingHouse(BACH)
andBangladeshElectronicFundTransferNetwork
CIBOnline
Otherinhouseapplicationslikeetendering,EXP
Matching,AccessPassissuance,meetingroom
booking,vehiclerequisition,erecruitmentetc
Modernizationof
Office
Layout
8/11/2019 Central Bank Strengthening Project- Bangladesh Bank
8/18
25/05/20
LAN/WANInternetandIntranet
BankWide
LAN/WAN
Connectivity
has
been
establishedandareinfulloperation
,connectedinasinglenetwork
DataCenterandDisasterRecoverySite(DRS)hasbeenestablished
Around3800PCs,Laptopsarenowconnectednt enetwor
Thisnetwork
is
the
basic
infrastructure
for
all
otherapplicationsrunninginthebank
BB
Intranethas
been
developed
and
are
in
use
by
theofficials
Allrelatedregulations,laws,guidelines,referencearenowavailabletoalltheofficialsofBBthrough
Allemployeerelatedinformationincludingloans,ProvidentFund,training,SalaryetcarenowavailableintheintranetthroughaninterfacewithSAP
Allofficecirculars,officeorders,guidelines,salary
s p,
s a emen s,
oans a emen s,
eren
formsetcarenowavailableinsoftformandBBhasstoppedprintingofthesehugedocuments
AsaresultBBisheadingtowardsitsobjectivesofpaperlessofficeandsavingtheenvironment
8/11/2019 Central Bank Strengthening Project- Bangladesh Bank
9/18
25/05/20
EnterpriseResourcePlanning(ERP)
BBhasimplementedthreemodulesofSAP
MaterialManagement(MM)Module
FinanceandControl(FICO)Module
Implementationoftheapplicationwas
envisagedtoimprovetheinternalgovernance
andefficiencyoftheorganization
EnterpriseResourcePlanning(ERP)ERP 1. H R
Module
HR Leave,Training,
Transfer/Posting,
PersonalFile,
Promotion,
Increment,
Integratedsolution. Once
action
is
takenatoneplace,automatically
otherareaslikesalary,advance,
leavebalance,payrollareaetcwill
beupdated.Nobackendprocessing
xa on, ,
Retirementetc
o eac on srequ re .
Payroll Salary
Management
Integratedsystem. Automated
deductions,accounttransfer,
calculationoftax,postingof
deductionsatdifferentheads,
updatingloanfileetcwillbe
automaticallydone.
Advance Allkinds
of
advanceto
employees
Integratedsystem and
automatically
calculatetheinterestandpostthem
inFICO.Recordallrepayments
automaticallyfrom payroll.
Provident
Fund
Provident Fund
Management
Integratedsystem reducingallthe
backendworkload.
8/11/2019 Central Bank Strengthening Project- Bangladesh Bank
10/18
25/05/20
2. Material
Managem
ent
(MM)
Module
Purchase of
assets,
maintenance
of
asset
register,
Depreciation
run
etc
Is
fully
integrated
with
the
finance
and
will
automatically
update
the
GL
heads
3. FICO Allthefinancial Integratedsolutions.Once
Mo u e transactionsarenow
capturedinthe
systemthroughout
BB.Thesystemis
thenautomatically
preparing the
requiredfinancial
statementsbranch
a t e ranc es,
departmentsandoffices
capturedthetransactions
inthesystem,theA&BD
willbeabletopreparethe
consolidatedfinancial
statement.Thesystemwill
alsobeabletomonitorand
consolidatedbasis.
Thetransactionswill
becaptured
and
postedinthesystem
bytheoriginator.
allocationofvarious
departmentsandoffices.
Banking
Application
PackageObjectives Modules ProspectsAutomatethe
functionalitiesofthe
branchofficesand
CoreBanking Automated alltheprocessesofbanking
transactionsofall thebranchofficesand
FRTMD.Thiscoversallcashreceipt/payment
FRTMD coveringall
typesoftransactions.
transactions,clearing,transfers,remittances,
sanchay patra,Prizebond,WageEarnersbond,
claims,LCs,VaultOperationetc
Treasury
Management
Allthefunctionalitiesofdealingroom,mid
officeandbackofficeis covered.Nowinlive
operation.Allcorporateactionslikematurity
couponpaymentwilltackledbythesystem
ar e
Infrastructure
e
unc ona es
o
e
overnmen
securitiesliketreasurybill,bond,repo,liquidity
support,special bondetchavebeenautomated
coveringbothprimaryandsecondarymarket
operation.Thiswillbringasignificantchangein
thecorporatefundmanagement.
8/11/2019 Central Bank Strengthening Project- Bangladesh Bank
11/18
25/05/20
EnterpriseDataWarehouseObjectives Modules Prospect
A centraldatabasewill
becreatedfor
MonetaryAnalysis
Alldatarelatedmacro economicandmonetaryanalysisiscapturedinthesystemthroughonline
collectionfromthesource.Nophysical
alltypesofdata
relatedto
centralbank.
Thisdatabase
willbe
accessibleby
theusersasper
theirgiven
movementofpeopleandpaperisrequired.All
relatedofficialsareabletoextractdatafromthe
centraldatawarehouseandusethesameintheir
officialjobs.
Prudential
Supervision
AlldatarelatedtosupervisionofbanksandFis is
capturedandstoredinthesystemthroughonline
. .
usethemattheirrequiredtime.
OLTP Alltheonlinetransactionprocessingdatais
capturedandpassedintothesystemwhichare
usedbytherespectiveuserslater on.
National
Payment
Switch
Under
implementation
Objectives
Prospects
Ensuring theinter 1. Willactasan electronicclearing
operabilityofdifferent
paymentchannelinthe
countryinorderto
enhancethetradeand
commercethrougha
robustpaymentsystem
house
2. Willensurerealtimetransactions
butbatchsettlementatthedayend
3. Electronicpaymentthroughcards
willbeenhancedirrespectiveofthe
ownershipofthecard
. .
paymentscanbemadethroughcard
5. Allcreditanddebitcardtransaction
processingcouldbesettledlocally
8/11/2019 Central Bank Strengthening Project- Bangladesh Bank
12/18
25/05/20
SystemforCashTransactionReporting(CTR)and
SuspiciousTransactionReporting(STR)
UNODChasagreedtodeliverandinstallgo
,aso ware eve ope y em n
BangladeshBank
Hardwarerequirementshavebeenfinalized
andareinprocessofprocurement
2012
Bangladesh
Automated
Clearing
House
(BACH)
and
BangladeshElectronicFundTransferNetwork(BEFTN)
Inliveoperationsince07October2010
movementofpeopleandpaper
Interdistrictsettlementofcheques atthesametimeframe
Capacitytohandlelargevolumeoftransactions
salary,paymentofdividend,paymentofrefundwarrantetc.
PaperlesspaymentsettlementthroughBEFTN
8/11/2019 Central Bank Strengthening Project- Bangladesh Bank
13/18
25/05/20
CIBOnlineObjectives
Prospects
Makingthecredit
informationavailableto
1. Bankcangetthe
borrowerscredit
thebanksandfinancial
institutionsinorderto
speedingupthecredit
approvalprocessand
creditadministration
informationonlineand
hencethetimefor
approvaloftheloanwillbe
reduced significantly
2. ThenumberofCIBReport
withthefullcompliance
of
Banking
Companies
Act.
requestcamedownto20
from
5000
6000
per
day3. Nophysicalmovementof
peopleandpaper.
Modernizationof
Office
Layout
ThenewlyinstalledITsystemsneedthe
ro ersecurit andmaintenance
Butthecurrentworkingenvironmentis
extremelyvulnerablefromtheperspectiveof
bothITsecurityandgoodworking
environment
Therefore,BB
decided
to
modernize
its
office
layoutwithcubiclechamberssothatproperIT
securitycanbeensured.
8/11/2019 Central Bank Strengthening Project- Bangladesh Bank
14/18
25/05/20
CurrentOfficeEnvironment
Current
Office
Environment
8/11/2019 Central Bank Strengthening Project- Bangladesh Bank
15/18
25/05/20
OfficeRenovationisinprogress
ModernizedOffice
of
CBSP
8/11/2019 Central Bank Strengthening Project- Bangladesh Bank
16/18
25/05/20
ModernizedOfficeofCBSP
Benefitsderived
Improvedregulatoryframework
Improvedknowledgebase
Im roved and efficient customer service likesalaryofgovt.officialsincludingPrimeMinisterandMinistersarenowbeingpaiddirectlytotheirbankaccountthroughEFT.
Paperlesstransactions
Integratedsolutionsreducingbackendjob
Transparencyand
better
management
BetterGovernance
CommitmenttoEnvironment
8/11/2019 Central Bank Strengthening Project- Bangladesh Bank
17/18
25/05/20
WayForward
Full
fledged
implementation
of
Basel
III GraduationtoIRBapproachforcreditriskorthe
AdvancedMeasurementApproaches(AMA)foroperationalrisk
CooperationinthefieldofstrengtheningsupervisioninlightofBaselII&BaselIII
HumanResourceDevelopment
ITsecurity
pgra nga proce ura manua s n new newITinfrastructure
RTGS
Financialsectorgovernance
ThankYou
8/11/2019 Central Bank Strengthening Project- Bangladesh Bank
18/18
25/05/20
SectionofCBSPDataCenter
Sectionof
CBSP
Data
Center