Dhaka, Bangladesh (BBN) – Bangladesh Bank (BB) has set roadmap to implement the Basel-III framework for bank companies from July 2014 in line with the global standard.
Under the roadmap, the central bank will issue guidelines for implementation of the Basel-III within April this year.
The initiative to be taken for capacity building of the banks on Basel-III issues during April to June this year.
The Basel-III implementation process will be stared from July 2014. It will be implemented fully by January 2019, according to the roadmap, issued by the central bank on Monday.
“The banks will will have to set aside 0.625 percent as capital conservation buffer by December 2016 to avoid any unwanted," a BB senior official told BBN in Dhaka.
Bangladesh is now implementing the Basel-II accord to consolidate capital base of the banks in line with the international standard.
It has been prepared on the basis of three pillars: minimum capital requirement, supervisory review process and market discipline.
Three types of risks – credit risk, market risk and operational risk – have to be considered under the minimum capital requirement.
BBN/SSR/AD-31Mar14-5:06 pm (BST)
