Who Regulates Banks and Finance in Bangladesh? BB, BSEC, IDRA, MRA and More
Bangladesh's financial system is regulated by five separate sector-specific authorities, each established under its own Act of Parliament , plus an overarching Ministry of Finance that holds policy authority over most of them. Bangladesh Bank sits on the board of three of the other four regulators, creating a central coordination layer that is unusual by international standards.
This article maps all major financial regulatory authorities in Bangladesh, what each one covers, and how the system is structured. These bodies are regulators , not financial service providers. Banks, insurers, and brokers are the institutions they regulate. Understanding who regulates what matters for compliance, investment, research, and any professional work touching Bangladesh's financial sector.
The Structure of Financial Regulation in Bangladesh
Bangladesh's financial sector is regulated through a multi-tier framework: the Ministry of Finance sets overarching policy, five sector-specific authorities regulate their respective industries, and supporting bodies handle tax, public audit, and financial reporting standards.
Policy level:
- Ministry of Finance (MoF): The Ministry of Finance sets fiscal policy, oversees the regulatory bodies through its divisions, and holds ownership oversight of state-owned financial institutions
Sector-specific regulators:
- Bangladesh Bank: Banking and non-bank financial institutions (NBFIs), payment systems, foreign exchange
- BSEC: The Bangladesh Securities and Exchange Commission (BSEC) is Responsible for capital markets including stock exchanges, securities dealers, brokers, and listed company disclosures
- IDRA: The Insurance Development and Regulatory Authority (IDRA) is responsible for the insurance sector including life and non-life insurers and intermediaries.
- MRA: The Microcredit Regulatory Authority (MRA) is responsible for microfinance institutions operating as NGO-MFIs.
- BFIU: The Bangladesh Financial Intelligence Unit (BFIU) is responsible for anti-money laundering and counter-terrorism financing, and operates under Bangladesh Bank
Supporting bodies: The three major supporting financial bodies in Bangladesh includes:
- National Board of Revenue (NBR) : The NBR is responsible for taxation (income tax, VAT, customs) in Bangladesh
- Financial Reporting Council (FRC): The FRC oversees financial reporting standards and auditor oversight.
- Comptroller and Auditor General (CAG) handles the public sector financial audit
It should be noted that Bangladesh Bank (BB) does hold a formal, high-level leadership position in the Microcredit Regulatory Authority (MRA) and maintains significant cross-sector coordination with the Bangladesh Securities and Exchange Commission (BSEC) and the Insurance Development and Regulatory Authority (IDRA).
What are the top Major Financial Institutions in Bangladesh
The top 9 financial institutions in Bangladesh includes:
- Ministry of Finance (MOF)
- Bangladesh Bank (BB)
- Bangladesh Securities and Exchange Commission (BSEC)
- Insurance Development and Regulatory Authority (IDRA)
- Microcredit Regulatory Authority (MRA)
- Bangladesh Financial Intelligence Unit (BFIU)
- National Board of Revenue (NBR)
- Financial Reporting Council (FRC)
- Comptroller and Auditor General (CAG)
Ministry of Finance
The Ministry of Finance is Bangladesh's central economic policymaking authority , responsible for the national budget, fiscal policy, public debt, and administrative oversight of most financial regulatory bodies.
The Ministry operates through four divisions that each touch the financial sector:
Finance Division: Sets fiscal policy, manages the national budget, and oversees government borrowing. Treasury bill and bond auctions , through which Bangladesh Bank manages government financing , are coordinated through the Finance Division.
Financial Institutions Division (FID): Exercises ownership and administrative oversight of state-owned commercial banks, including Sonali Bank, Janata Bank, Agrani Bank, and Rupali Bank. FID monitors their compliance and financial performance on behalf of the government as owner.
Economic Relations Division (ERD): Manages relations with international development partners , the World Bank, IMF, and Asian Development Bank , and coordinates foreign aid and loan programmes. ERD is directly relevant to the IMF reform programme that Bangladesh Bank is currently implementing.
Internal Resources Division (IRD): Oversees the National Board of Revenue (NBR), which collects income tax, VAT, and customs duties.
When was MOF Established in Bangladesh?
The Ministry of Finance (MOF) of Bangladesh was established on April 14, 1971. It was formed as part of the Provisional Government of Bangladesh (Mujibnagar Government) during the Liberation War. The ministry began its operations to manage the financial affairs of the nascent state, with M. Mansur Ali serving as the first Finance Minister.
Who is the Current Minister of MOF in Bangladesh?
As of March 2026, The Ministry of Finance (MOF) is led by a Minister, not a Chairman. The current Finance Minister of Bangladesh is Amir Khosru Mahmud Chowdhury.
He assumed the office on February 17, 2026, following the formation of the new cabinet.
Bangladesh Bank
Bangladesh Bank (BB) is the central bank of Bangladesh , the primary monetary authority and the lead financial regulator for all banks, non-bank financial institutions (NBFIs), and payment systems.
What Bangladesh Bank regulates:
- 62 scheduled banks (state-owned, private, foreign, and specialised)
- 34 non-bank financial institutions (NBFIs)
- All payment system operators and mobile financial services (MFS) providers including bKash, Nagad, and Rocket
- Foreign exchange transactions under the Foreign Exchange Regulation Act 1947
What are the Key powers of Bangladesh Bank?
The key six powers on Bangladesh Bank include the below:
- Issues banking licences and revokes them.
- Sets capital adequacy, liquidity, and risk management requirements for all banks
- Acts as the statutory resolution authority for failing banks , power reinforced by the Bank Resolution Ordinance 2025, which, according to Bangladesh Sangbad Sangstha (BSS), was used to merge five troubled Islamic banks into Sammilito Islami Bank.
- Issues monetary policy twice yearly; current policy rate is 10.0% (maintained since October 2024; source: MPS H2FY26)
- Publishes daily exchange rates for all major currencies at bb.org.bd
- Operates Risk-Based Supervision (RBS), launched 4 January 2026, with 500+ officials trained (source: MPS H2FY26)
Bangladesh Bank was established under Bangladesh Bank Order, 1972 (7 April 1972) and the current governor as of March 2026 is Md. Mostaqur Rahman.
Bangladesh Bank holds board seats in BSEC, IDRA, and MRA , giving it formal representation across all major financial sector regulators.
Effective 1 August 2023, a mandate from Bangladesh Bank requires all authorised dealer banks to provide precise reporting on the specific transaction medium , be it Online, POS, ATM, or QR Code , for every foreign currency transaction processed through ICMS. This regulatory framework is designed to establish a clear distinction between physical card usage and online payments made to freelancers.
When was BB Established in Bangladesh?
The Bangladesh Bank (BB) was established on December 16, 1971, the day of the country's victory and independence. The bank was formally established under the Bangladesh Bank Order, 1972 (President's Order No. 127 of 1972), which was passed on October 31, 1972 (with retrospective effect from December 16, 1971). The bank was formally established under the Bangladesh Bank Order, 1972 (President's Order No. 127 of 1972), which was passed on October 31, 1972 (with retrospective effect from December 16, 1971)
Who is the Current Governor of BB in Bangladesh?
As of March 2026, The current Governor of BB is Md. Mostaqur Rahman. He assumed the office on February 26, 2026, becoming the 14th Governor of the central bank. His appointment marks a significant shift in tradition, as he is the first individual from a private business background to hold this position. It should be noted that the Bangladesh Bank (BB) is headed by a Governor, not a Chairman.
Bangladesh Securities and Exchange Commission (BSEC)
Bangladesh Securities and Exchange Commission (BSEC) is Bangladesh's capital market regulator , responsible for licensing and supervising stock exchanges, brokers, asset managers, and all other capital market intermediaries, as well as protecting investor rights.
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What the Bangladesh Securities and Exchange Commission regulates?
The 5 major regulations of the BSEC include:
- Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE)
- Stockbrokers and securities dealers
- Asset management companies and mutual funds
- Merchant banks and portfolio managers
- Public company disclosures and corporate governance for all listed entities
What are the Functions of the Bangladesh Securities and Exchange Commission?
The 4 major functions of the Bangladesh Securities and Exchange Commission include:
- Approves initial public offerings (IPOs) and public securities issuances
- Issues and enforces the Corporate Governance Code , mandatory for all listed companies and banks since 2018
- Investigates and penalises market manipulation, insider trading, and fraudulent transactions
- Issues investor protection rules and investment education standards
The Bangladesh Securities and Exchange Commission (BSEC) was established on 8 June 1993 under the Bangladesh Securities and Exchange Commission Act 1993, and operates under the Ministry of Finance. It has been an 'A' category member of the International Organisation of Securities Commissions (IOSCO) since 22 December 2013, and its official website is sec.gov.bd.
BSEC also oversees the corporate governance requirements for banks listed on the DSE or CSE , creating a direct overlap with Bangladesh Bank's prudential supervision. The two regulators coordinate through Bangladesh Bank's board representation at BSEC.
For example, a bank like BRAC Bank that is listed on the DSE is simultaneously subject to Bangladesh Bank for prudential regulation and capital adequacy, and to BSEC for corporate governance disclosures and listed company rules , two separate regulators, two separate compliance obligations.
When was BSEC Established in Bangladesh?
The Bangladesh Securities and Exchange Commission (BSEC) was established on June 8, 1993, under the Bangladesh Securities and Exchange Commission Act, 1993
Who is the Current Chairman of BSEC in Bangladesh?
As of March 2026, the current Chairman of BSEC is Khondoker Rashed Maqsood. He was appointed to the position on August 18, 2024, for a four-year term. The Bangladesh Securities and Exchange Commission (BSEC) is headed by a Chairman, not a Governor.
Insurance Development and Regulatory Authority (IDRA)
The full meaning of IDRA is “Insurance Development and Regulatory Authority”. IDRA is Bangladesh's insurance sector regulator, responsible for licensing insurance companies, protecting policyholders, and ensuring the financial stability and orderly development of the insurance industry.
What does IDRA Oversee?
The IDRA oversees four areas of Bangladesh's financial market including:
- Life insurance companies
- Non-life (general) insurance companies
- Insurance intermediaries including agents and brokers
- Reinsurance arrangements
What are the Major functions of IDRA?
The major five (5) functions of IDRA includes:
- Issues and revokes insurance company licences
- Sets minimum capital requirements (BDT 30 crore for life insurance, BDT 40 crore for non-life)
- Supervises financial soundness and claims-paying capacity of insurers
- Enforces IFRS-based financial reporting for insurance companies
- Protects policyholder rights and handles industry disputes
The Insurance Development and Regulatory Authority (IDRA) was established under the Insurance Development and Regulatory Act 2010 and instituted on 26 January 2011, replacing the former Chief Controller of Insurance. It is governed by a four-member executive body headed by a Chairman, operates under the Ministry of Finance, and its official website is idra.org.bd. As of March 2026, the position of Chairman of the Insurance Development and Regulatory Authority (IDRA) is vacant following the resignation of Dr. M. Aslam Alam.
Bangladesh's insurance penetration remains extremely low , formal private health insurance covers less than 1% of the population. IDRA's mandate to develop the sector is as significant as its supervisory role.
Microcredit Regulatory Authority (MRA)
The full meaning of MRA is “Microcredit Regulatory Authority”. The MRA is the regulator of Bangladesh's microfinance sector , responsible for licensing and supervising NGO-based microfinance institutions (NGO-MFIs), which provide credit and financial services to low-income populations outside the formal banking system.
What does MRA Oversee in Bangladesh?
The MRA oversees 3 major areas of the Bangladesh financial sector including:
- 731 licensed microfinance institutions with approximately 25,567 branches
- NGOs engaged in microcredit activities as a primary objective
- Microcredit operations, governance, and financial management of MFIs
What are the functions of MRA in Bangladesh?
The four major functions of MRA in Bangladesh includes:
- Issues, suspends, and cancels MFI licences
- Sets governance and transparency standards for MFIs
- Supervises financial management and loan portfolio quality
- Operates the Microfinance Credit Information Bureau (MF-CIB)
The Microcredit Regulatory Authority (MRA) was established under the Microcredit Regulatory Authority Act 2006, coming into effect on 27 August 2006, with its official website at mra.gov.bd. The MRA is headed by an Executive Vice Chairman rather than a Chairman. The current Executive Vice Chairman of MRA is Professor Dr. Mohammed Helal Uddin, who joined on 15 October 2024.
As of March 2026, MRA's MF-CIB does not currently interoperate with Bangladesh Bank's banking sector Credit Information Bureau (CIB). A loan from an MFI does not appear in a bank's credit check , and vice versa. This is a recognised gap that financial reform advocates are pushing to address. Closing it would significantly improve credit information quality across both sectors.
Bangladesh Financial Intelligence Unit (BFIU)
The full meaning of BFIU is “Bangladesh Financial Intelligence Unit”. The BFIU is Bangladesh's anti-money laundering and counter-terrorism financing authority , operating under Bangladesh Bank and responsible for monitoring suspicious financial transactions across all financial institutions.
What Does the BFIU Oversee?
As of March 2026, the BFIU Oversees the below bodies and functions:
- All banks, NBFIs, insurance companies, securities dealers, MFIs, and money service businesses
- Monitoring, analysis, and reporting of suspicious financial activity
- Issuing AML/CFT guidelines and compliance requirements to all reporting financial institutions
- International information exchange on financial crime
The Bangladesh Financial Intelligence Unit (BFIU) operates under Bangladesh Bank, not as a standalone regulatory body and derives its legal authority from the Money Laundering Prevention Act 2012 and the Anti-Terrorism Act 2009.
When was BFIU Established in Bangladesh?
The Bangladesh Financial Intelligence Unit (BFIU) was established in its current form on January 25, 2012, following the enactment of the Money Laundering Prevention Act, 2012.
Who is the Current Chairman of BFIU in Bangladesh?
The current Head of the Bangladesh Financial Intelligence Unit (BFIU) is Ikhtiar Uddin Mohammad Mamun.
He was appointed to the position on January 12, 2026, following a vacancy left by the previous head. His appointment is for a two-year term with the rank and status of a Deputy Governor of the Bangladesh Bank.
National Board of Revenue (NBR)
The NBR stands for “National Board of Revenue”. The NBR is Bangladesh's central revenue and taxation authority , responsible for collecting income tax, VAT, and customs duties, and enforcing tax compliance across the economy.
What Does the NBR Oversees in Bangladesh?
The NBR oversees the four major tax categories including:
- Income tax (for individuals and companies)
- Value Added Tax (VAT)
- Customs and import duties
- Excise duties on selected goods
The NBR operates under the Internal Resources Division (IRD) and Ministry of Finance.
As detailed in Ministry of Finance gazette notifications, In 2025, the Revenue Policy and Revenue Management Ordinance dissolved the traditional NBR structure, splitting it into two new bodies: the Revenue Policy Division (RPD), responsible for tax policy and legislation, and the Revenue Management Division (RMD), responsible for operational enforcement and collection. This restructuring remains underway as of 2026, with the official website at nbr.gov.bd.
When was NBR Established in Bangladesh?
The NBR was established in 1972 under President's Order No. 76 of 1972.
Who is the Current Chairman of NBR in Bangladesh?
The current Chairman is Md. Abdur Rahman Khan, who assumed the dual role of Secretary of IRD and Chairman of NBR on 15 August 2024.
Financial Reporting Council (FRC)
The Financial Reporting Council (FRC) is Bangladesh's independent oversight body for financial reporting standards, auditing quality, and corporate accountability across listed entities and financial institutions.
What Does the FRC Oversee in Bangladesh?
The FRC is responsible for the below duties including:
- Financial reporting standards for public sector entities, listed companies, banks, and insurance companies
- Oversight of auditors and audit firms conducting audits of listed entities and financial institutions
- Oversight of the Institute of Chartered Accountants of Bangladesh (ICAB) and other professional accountancy bodies
The Financial Reporting Council (FRC) was established under the Financial Reporting Act 2015 and operates under the Ministry of Finance, with its official website at frc.gov.bd.
The FRC is a relatively newer institution in Bangladesh's regulatory landscape and is still building out its oversight capacity. Its mandate becomes particularly relevant as Bangladesh Bank strengthens Asset Quality Reviews (AQRs) of banks , because the quality of bank financial statements that those reviews rely on is ultimately the FRC's responsibility.
When was FRC Established in Bangladesh?
The Financial Reporting Council Bangladesh was established on 19 April 2016 under the Financial Reporting Act 2015.
Who is the Current Chairman of FRC in Bangladesh?
As of April 2026, according to the Financial Express, the current Chairman of the Financial Reporting Council (FRC) in Bangladesh is Dr. Md. Sajjad Hossain Bhuiyan. In April 2026, he met with representatives from ACCA Bangladesh to discuss the adoption of international reporting standards (IFRS) and sustainability reporting.
Comptroller and Auditor General (CAG)
The Comptroller and Auditor General (CAG) is Bangladesh's supreme audit authority , responsible for auditing the accounts of all government ministries, departments, statutory bodies, and public enterprises.
What Does the CAG Audit?
The CAG is responsible for auditing accounts of the below bodies in Bangladesh.
- All government ministries and departments
- State-owned banks and enterprises
- Local government bodies
- Development project expenditures
The CAG is a constitutional authority under Article 127 of the Bangladesh Constitution , independent of the executive branch.
The CAG audits the financial statements of state-owned banks such as Sonali Bank, Janata Bank, Agrani Bank, and Rupali Bank, and the accounts of Bangladesh Bank itself , providing the only external public accountability layer for government-owned financial institutions.
When was CAG Established in Bangladesh?
The Office of the Comptroller and Auditor General (CAG) of Bangladesh was established on May 11, 1973, when the first CAG, Fazle Kader Muhammad Abdul Baqui, assumed his duties.
Who is the Current Chairman of CAG in Bangladesh?
As of April 2026, The current Comptroller and Auditor General (CAG) of Bangladesh is Md. Nurul Islam. He assumed the office on July 26, 2023, as the 13th CAG of Bangladesh. It should be noted that the head of this constitutional body is officially titled the "Comptroller and Auditor General," not Chairman.
As of March 2026, Any financial institution operating in Bangladesh , including fintech companies, MFS providers, payment processors must comply with BFIU guidelines. Failure to report suspicious transactions is a criminal offence under the Money Laundering Prevention Act 2012.
According to Bangladesh Bank data reported by Prothom Alo, In January 2026, Bangladesh's remittance inflows reached USD 3.17 billion, representing a significant 45% year-on-year surge. This growth followed a strategic move by Bangladesh Bank to clear USD 3.5 billion in outstanding correspondent banking arrears, effectively reopening formal channels for these financial transfers , a result directly tied to stronger AML compliance and restored correspondent banking trust.
Quick Reference
Each financial sector in Bangladesh has a dedicated regulator , use this table to identify which authority governs a specific activity or institution.
| Provider | You send | Exchange rate | Fee | Recipient gets |
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$1,000 | 1 USD = 52.69 EGP | $0.00 |
52,685.12 EGP
▲ Save up to 2,042.26 EGP
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$1,000 | 1 USD = 53.14 EGP | $17.40 |
52,214.87 EGP
▼ 470.25 EGP less
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$1,000 | 1 USD = 51.78 EGP | $4.99 |
51,517.55 EGP
▼ 1,167.57 EGP less
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$1,000 | 1 USD = 52.37 EGP | $30.00 |
50,797.53 EGP
▼ 1,887.59 EGP less
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$1,000 | 1 USD = 50.90 EGP | $5.00 |
50,642.86 EGP
▼ 2,042.26 EGP less
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Entities that operate across multiple financial sectors , for example, a bank that is also listed on the DSE , are subject to multiple regulators simultaneously: Bangladesh Bank for prudential supervision, BSEC for corporate governance and disclosure, and BFIU for AML/CFT compliance. Understanding which regulator has authority over which function is essential for compliance teams operating in Bangladesh.
Current Status of Bangladesh Financial Authorities in 2026
Bangladesh's financial regulatory framework is undergoing its most significant structural overhaul in decades , driven by IMF loan conditions, a banking sector non-performing loan (NPL) crisis, and a post-2024 political transition that created space for institutional reform.
Bangladesh Bank: Pursuing an amendment to the Bangladesh Bank Order 1972 to increase central bank autonomy, reduce government representation on its board, and establish independent appointment processes for the Governor and Deputy Governors. Progress has been slowed by bureaucratic resistance within the Finance Ministry as of early 2026. Risk-Based Supervision (RBS) launched 4 January 2026, replacing the checklist-based inspection system. According to The Business Standard (TBS News), the NPL ratio exceeded 36.0% as of September 2025, though Bangladesh Bank attributes the jump to stricter asset classification rather than actual deterioration.
BSEC: BSEC does not issue bank licenses of any kind. Digital bank licenses are exclusively the jurisdiction of Bangladesh Bank (BB). Working with ADB on capital market development. The Corporate Governance Code (2018) is being more actively enforced for listed banks.
NBR restructuring: The Revenue Policy and Revenue Management Ordinance 2025 formally dissolved the traditional NBR structure and created two separate bodies , the Revenue Policy Division and Revenue Management Division. This is the most significant structural change to Bangladesh's tax administration in decades.
MRA: Advocates are pushing for interoperability between MRA's Microfinance Credit Information Bureau and Bangladesh Bank's banking sector Credit Information Bureau , a reform that would significantly improve credit information quality across both sectors and reduce double-financing risk.
FAQs About Bangladesh's Financial Authorities
What is the main financial regulator in Bangladesh?
Bangladesh Bank is the primary financial regulator , it oversees all banks, NBFIs, and payment systems. It also holds board seats in BSEC, IDRA, and MRA.
Who regulates the stock market in Bangladesh?
BSEC (Bangladesh Securities and Exchange Commission) regulates the capital market, including the Dhaka Stock Exchange, Chittagong Stock Exchange, brokers, and listed company disclosures.
Who regulates insurance in Bangladesh?
IDRA (Insurance Development and Regulatory Authority) regulates all life and non-life insurance companies in Bangladesh.
Who regulates microfinance in Bangladesh?
MRA (Microcredit Regulatory Authority) licenses and supervises NGO-based microfinance institutions.
Who enforces anti-money laundering rules in Bangladesh?
BFIU (Bangladesh Financial Intelligence Unit), operating under Bangladesh Bank, is responsible for AML and counter-terrorism financing compliance across all financial institutions.
Who collects taxes in Bangladesh?
NBR (National Board of Revenue) , now being restructured into the Revenue Policy Division and Revenue Management Division , collects income tax, VAT, and customs duties.
Key Takeaways
Bangladesh's financial regulatory system operates through five sector-specific authorities , Bangladesh Bank (banking), BSEC (capital markets), IDRA (insurance), MRA (microfinance), and BFIU (AML/CFT) , under the overarching policy authority of the Ministry of Finance. Supporting bodies include the National Board of Revenue (taxation), the Financial Reporting Council (financial reporting standards), and the Comptroller and Auditor General (public sector audit).
Bangladesh Bank is the most powerful and central of these institutions , it holds board seats in three of the other regulators, acts as the government's banker, and manages monetary policy, foreign exchange, and bank resolution. The framework is currently undergoing significant reform: Bangladesh Bank is seeking greater autonomy through a proposed amendment to its founding ordinance; NBR has been formally restructured; Risk-Based Supervision launched in January 2026; and IMF programme conditions are driving the most comprehensive overhaul of banking sector governance in the country's history.
The information in this article is provided for general informational and educational purposes only and does not constitute financial, legal, or tax advice from nsave or any of its affiliates. It is not a substitute for advice from a qualified financial advisor. We make no representations or warranties, whether expressed or implied, that the content is accurate, complete, or up to date.
Fees, exchange rates, incentives, and product availability may change and can vary by user and jurisdiction. Examples are illustrative only. Before making any financial decisions, seek advice from a qualified financial advisor who can assess your individual circumstances and objectives.
nsave helps freelancers and professionals from Bangladesh, Nigeria, Pakistan, Egypt, and beyond receive and manage USD abroad. As a non-bank payment provider, your money is not protected by the Financial Services Compensation Scheme (FSCS).
