The Deputy Governor of Bangladesh Bank has stressed the urgent need for institutionalizing forensic audits in the country’s banking sector to curb financial irregularities and restore public confidence.
Speaking at a round table discussion on “Institutionalizing Forensic Audit in Banks in Bangladesh” held at the BIBM Auditorium on Wednesday, the Deputy Governor highlighted that despite notable achievements in sustainable finance and economic development, Bangladesh’s banking system continues to grapple with persistent irregularities, including fraud, embezzlement, and willful default.
“These irregularities are not merely operational lapses but systemic challenges rooted in inadequate governance, weak transparency, and poor accountability,” he noted.
The Deputy Governor pointed out that the global financial crisis of 2008 underscored how weak internal governance could destabilize banks, adding that Bangladesh’s recurring scandals with non-performing loans and insider abuses make forensic audits indispensable.
“Forensic audits can act both as a deterrent and as a remedy by rigorously reviewing financial records, uncovering concealed irregularities, and reinforcing governance frameworks,” he said.
He further explained that several departments of Bangladesh Bank—including Banking Inspection, Off-Site Supervision, and the Bangladesh Financial Intelligence Unit—already play critical roles in monitoring, but that dedicated forensic auditing must now be mainstreamed. The Anti-Corruption Commission (ACC) was also identified as a key player in tackling systemic corruption within banks.
Recent forensic reviews conducted by global firms like EY and KPMG, with support from the Asian Development Bank, have already uncovered hidden non-performing loans and fraudulent transactions, paving the way for reforms.
The Deputy Governor praised the Bangladesh Institute of Bank Management (BIBM) research team for its recommendations and expressed hope that the outcomes of the roundtable would guide future policy actions.
“Dear bankers, we need to work together to achieve the expected results for our financial sector,” he urged, formally inaugurating the roundtable discussion.