News & Events


Research Workshop on Internal Audit and Performance of Banks in Bangladesh held at BIBM


 Press Release

Dhaka, August 02, 2018

A day long research workshop was held at the Bangladesh Institute of Bank Management (BIBM) on August 02, 2018, in its auditorium. A paper titled " Internal Audit and Performance of Banks in Bangladesh " was presented in the workshop by Abdul Qayum Mohammad Kibriya, Faculty Member of BIBM. Other members of the research workshop team are Dr.Mahabbat Hossain, Assistant Professor, BIBM; Maksuda Khatun, Lecturer,BIBM and Kamal Hossain ACA, SVP & Head of Internal Audit, Al-Arafah Islami Bank Limited.

Abu Hena Mohd. Razee Hassan, Chairman, Executive Committee, BIBM and Deputy Governor, Bangladesh Bank was present in the research workshop as the chief guest. BIBM Director General Toufic Ahmad Choudhury Chaired the Program. A good number of participant’s senior bank executives, academicians, media representatives, faculty members, officers of BIBM participated in the research workshop. The study identifies the problem areas as well as success factors in Internal Audit and Performance of Banks in Bangladesh.

Helal Ahmed Chowdhury, Supernumerary Professor of BIBM;  Md.Yasin Ali, Supernumerary Professor of BIBM; Farid Uddin Ahmed, Former Managing Director Islami Bank Bangladesh Limited;Dr. Shamsuddin Ahmad, Chairman, Audit Committee, Prime Bank Limited spoke among others at the workshop.

 

Abu Hena Mohd. Razee Hassan said, strong governance culture is a must for developing a sustainable banking industry. Ensuring a strong and independent internal control as well as internal audit system is an important part of this process.

 He also said, our surveillance mechanism through off-site, on-site and online monitoring. However, we always prefer self-regulation, self-correction and self-protection.

 

BB will continue its policy support in future for the banking sector of the country. However, we expect that BoD and senior management of banks will demonstrate their commitment to integrity and ethical values he added. 

 

The study said, forty per cent of the bank employees are unwilling to work in the banks’ internal control, compliance department due to huge workload in the department.

BIBM faculty member Md Abdul Kayum Mohammad Kibria, in the keynote paper, said that the employees in the banks’ ICCD were facing workload as only 1.52 per cent employees of a bank were engaged in the department. Each member of the audit team overseas four branches while an audit team handles 22 branches of the bank concerned. Due to huge pressure and less scope for giving time to family, 40 per cent of the bank employees are unwilling to work in the audit department.

Helal Ahmed Chowdhury said, ensuring efficient manpower with proper training would help banks prevent many of the irregularities banks. Internal audit system must be strengthened along with ensuring appointment of efficient manpower.

Yasin Ali said, some cases, the central bank shows relaxation regarding the internal audit of banks. The former BB executive director also called on the central bank to strengthen its monitoring over the banks.

Farid Uddin Ahmed  said ,strengthening of banks audit management would help reduce loan-related risks largely.

Dr. Shamsuddin Ahmad,all the banks should ensure liberty for the audit department with a view to having strong management. But, bank board does not want to do so.


BIBM Director General Toufic Ahmad Choudhury said that none could achieve success without internal audit and internal audit was more important in banks than other entities. 

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Written by Manager

Sunday 5th August 2018