Bangladesh launches AI oversight framework for banks
Bangladesh Bank introduces sector-specific AI rules to strengthen digital finance governance, consumer protection, and financial stability
DHAKA, Bangladesh (MNTV) — Bangladesh has taken a decisive step toward positioning itself as a forward-looking digital economy, announcing a country-level push to regulate artificial intelligence in banking at a time when many global financial systems are still grappling with oversight gaps.
At a policy seminar this week, Bangladesh Bank outlined a comprehensive roadmap for integrating artificial intelligence into the financial sector, including the formation of a dedicated seven-member team of AI specialists to monitor algorithm-driven banking operations and financial transactions.
The move places Bangladesh among a growing but still limited group of countries in the Global South attempting to proactively govern financial AI, rather than responding after large-scale deployment. Regulators say the initiative reflects a broader national effort to align digital innovation with consumer protection, data security, and systemic stability.
Officials confirmed that an integrated AI policy tailored specifically for banking and financial services is already under formulation. The framework will focus on safeguarding customer rights, managing algorithmic risks, strengthening cybersecurity, and ensuring transparency in automated decision-making — priorities increasingly emphasized by international financial institutions and regulators worldwide.
The seminar, titled Artificial Intelligence: Reshaping Financial Services and Its Regulation, brought together policymakers, technology experts, academics, and banking leaders to assess how AI can support financial inclusion, fraud prevention, and operational efficiency while remaining accountable to public oversight.
Industry and academic speakers highlighted that Bangladesh’s approach stands out for its sector-specific focus. Representatives from University of Dhaka and the Bangladesh Computer Council noted that while national AI strategies exist in many countries, few have translated them into concrete regulatory mechanisms for banking.
Banking executives stressed that Bangladesh’s success will depend on moving beyond pilot projects toward large-scale, explainable AI systems supported by skilled professionals and high-quality data infrastructure. The emphasis, they said, should remain on long-term capacity building rather than short-term experimentation.
By institutionalizing AI oversight within its central bank, Bangladesh is signaling that digital transformation will be guided by regulation, not left to market forces alone — an approach analysts say could strengthen trust, stability, and international confidence in the country’s evolving financial system.
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