Bangladesh Bank to introduce AI policy as financial sector embraces digital transformation

DHAKA, Bangladesh (MNTV) — Bangladesh’s central bank is preparing the country’s first comprehensive policy on the use of artificial intelligence in finance, as part of efforts to modernize regulation and secure digital systems amid a fast-evolving financial landscape.

Bangladesh Bank, the state institution responsible for monetary policy and financial stability, has formed a seven-member expert team from its Information Technology Division to draft the new policy, according to the local media. 

 Executive Director Muhammad Zakir Hossain is overseeing the process, which is expected to produce a framework within two months.

The policy aims to govern how banks deploy AI in areas such as fraud prevention, credit risk assessment, market analysis, and customer service. It also includes a plan for the central bank to develop its own large language model — an AI system trained to process financial data domestically rather than through foreign servers — to safeguard sensitive economic information.

Officials say the policy will help align Bangladesh’s banking system with global standards, allowing AI-driven models to improve economic forecasting for inflation, GDP growth, and foreign currency reserves. The initiative also seeks to encourage fintech innovation across mobile banking, digital payments, and cyber-security.

The move follows a study by the Bangladesh Institute of Bank Management (BIBM), which found that nearly 60pc of local banks lack any AI or cybersecurity policy. Analysts say this underlines the urgency of a unified national approach, as financial institutions across Asia and Africa increasingly integrate machine learning into regulatory compliance and fraud detection.

For Bangladesh, where digital banking adoption has surged in recent years, the AI policy is expected to become a cornerstone of the government’s “Smart Bangladesh 2041” vision — a long-term strategy to build a secure, technology-driven economy that balances innovation with oversight.