Bangladesh Bank

Profile narrative

Bangladesh Bank, also known as the Bangladesh Central Bank, is the nation's monetary authority responsible for formulating and implementing monetary policy, issuing the Bangladeshi taka, and overseeing the country's payment and settlement systems. It acts as the banker to the government, managing government accounts and facilitating public debt issuance. The institution also supervises and regulates scheduled banks and non‑bank financial institutions to ensure stability and soundness of the financial sector. Additionally, it manages Bangladesh's foreign exchange reserves and conducts foreign exchange operations to support external viability.

As the sole central bank of Bangladesh, its regulatory mandate extends to all banking entities operating within the country's jurisdiction, giving it a unique position in shaping the financial landscape. The bank's expertise in macroeconomic analysis and reserve management is recognized regionally, and it participates in international forums such as the Asian Clearing Union and the IMF. Its operational framework includes a board of governors appointed by the government, which provides strategic oversight while maintaining operational independence in policy formulation. The institution also maintains a network of branches across major cities to facilitate the distribution of currency and provide services to financial institutions.

The 2016 cyber heist, in which attackers attempted to steal nearly one billion dollars from its account at the New York Federal Reserve, highlighted both the sophistication of external threats and the bank's capacity to respond through coordination with international partners and local authorities. Forensic analysis pointed to external compromise and suggested the attackers possessed detailed knowledge of internal procedures, prompting subsequent upgrades to cybersecurity controls and monitoring capabilities. This incident underscored the importance of robust information security measures for central banks handling high‑value transactions and reinforced Bangladesh Bank's focus on strengthening its IT resilience.

Bangladesh Bank is a statutory body wholly owned by the Government of Bangladesh, operating under the Bangladesh Bank Order, 1972, and subsequent amendments. It reports to the Ministry of Finance but retains autonomy in executing monetary policy and regulatory functions. The bank's capital is fully provided by the state, and any surplus earnings are transferred to the government treasury. This ownership structure ensures that its objectives align with national economic goals while allowing it to function as the country's central monetary authority.

Incidents

1 incident linked to this organisation.