Deposit Insurance Department firstname.lastname@example.org
|Name & Designation||Telephone||Fax|
|Abu Farah Md. NasserDeputy Governor|
|Md. Mosharraf Hossain KhanExecutive Director|
|Md. Ibrahim BhuiyanGeneral Manager (G)|
Deposit insurance is a system established by the Government of Bangladesh to protect depositors of schedule banks against the loss of their deposits in the event that one or multiple bank is unable to meet its obligations to the depositors. In Bangladesh Deposit Insurance System was first introduced in August 1984 as a scheme by means of ‘’The Bank Deposit Insurance Ordinance 1984’’. In July 2000, the Ordinance was repealed by an Act called “Bank Amanat Bima Ain, 2000” (ব্যাংক আমানত বীমা আইন,২০০০), . Deposit Insurance System in Bangladesh is now being administered by the said act.
Objectives of the department:
In Bangladesh Deposit Insurance system (DIS) is designed to protect depositors, enhance public confidence to the bank, increase savings and foster economic growth, enhance market discipline and overall stability of the financial system. Most importantly DIS ensures orderly payment system in case of winding up of any insured bank.
The department is constituted of two important Divisions (units):
- Deposit Insurance Division.
- Liquidated Bank Monitoring Division.
Function of the department:
The functions of this department are addressed below;
1. Preparation of Half-Yearly Worksheet for calculation of Deposit Insurance Premium of member banks and sending letters to each member including foreign banks (operating in Bangladesh) for making payment of Deposit Insurance premium to DITF .
2. Collection of half-yearly Deposit Insurance Premium and Deposited money to the Deposit Insurance Trust Fund (DITF) from all scheduled banks including foreign banks branches (operating in Bangladesh).
3. Prudent Investment of accumulated earnings of DITF in the Government Securities, BB Bills and repo as approved by the Trustee Board on a continuous basis.
4. Monitor and participate in the Government Securities Auction as per adequacy of DITF Balance.
5. Preparation of special statement for APRC, IADI, WB, IMF and other International Organizations as and when required.
6. Preparation of ‘’management report’’ on DITF position on half-yearly basis .
7. Acting as the responsible entity to make payment of the coverage amount to every eligible depositor of the liquidated bank as per the provision of “Bank Amanat Bima Ain, 2000’’ (ব্যাংক আমানত বীমা আইন, ২০০০).
8. Appointment of external auditors to carry out the audit of DITF for preparing Annual Financial Report. Accordingly, submit the report to the Trustee board i.e Board of Directors of Bangladesh Bank for approval and finally send the approved report to Government of Bangladesh.
9. According to the section 44 of Bank Company Act, 1991 (ব্যাংক কোম্পানী আইন,১৯৯১) On-site supervision in the event of any urgent issue arose regarding premium assessment and collection.
10. Watchful management of total fixed and liquid assets as well as liabilities of the banks those are in the process of liquidation.
11. Onsite inspection of the fixed assets of the banks under the process of liquidation.
12. Prudent monitoring of the investment of total available fund of the banks under liquidation process.
13. Correspondence and Co-ordination with related authorities for collecting/ authenticating different important legal documents of bank under liquidation process.
14. Maintaining regular contact with panel legal advisor regarding on-going court cases of the banks those are in the process of liquidation.
15. Ensure the safe preservation of all legal papers and documents of liquidated banks.