Bangladesh Bank aims to launch digital banks in the coming year to promote financial inclusion and keep pace with global trends in digital banking. It has finalized a guideline for the establishment of digital banks in the country. These digital banks will operate under the Banking Company Act and have a lower minimum capital requirement of Tk125 crore compared to Tk500 crore for conventional banks. However, digital banks will not provide over-the-counter services, issue physical instruments, or transact in foreign currency except for wage earners’ remittances. Sponsors of digital banks must meet specific criteria. The guidelines also emphasize the use of advanced technologies such as artificial intelligence, machine learning, and blockchain to provide efficient and innovative digital financial products and services. The guidelines also outline requirements for sponsors, directors, and managerial positions within digital banks. Digital banks will need to comply with the regulations on reserve ratios, liquidity ratios, and capital adequacy ratios set by the Bangladesh Bank.
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