New division created in finance ministry

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Nazmul Ahsan
A new division -- the Bank and Financial Division -- was officially created in the Ministry of Finance (MoF) Monday as the secretary-committee on administrative affairs approved a proposal to this effect on the day, meeting sources said.
The number of divisions under the MoF now stands at four with the creation of the new division. Until Sunday, the ministry had Finance Division, Internal Resources Division and Economic Relations Division under its control.
The meeting of the secretary committee, presided over by Cabinet Secretary M. Abdul Aziz was held at the Cabinet Division.
The meeting also allocated the business the new division would transact and approved the necessary manpower comprising of 82 officials and employees for it, sources said.
According to the work allocation, the newly established division will oversee the credit and interest rate policies of the commercial banks, issue guidelines and policy direction for insurance sector, monitor and regulate the share market and review the investment policies and programmes of the government, it is learnt.
With the formation of the new division, the workload of the Finance Division will decrease, while government interventions in the affairs of banking and insurance sectors, Securities and Exchange Commission and Cooperatives would increase, officials said.

The Prime Minister Sheikh Hasina recently instructed the establishment ministry and MoF to set up a separate and new Banking Division under the MoF, sources said.
However, it is learnt that influential quarters, both inside and outside the government, played a vital role in establishing the new division. A state-minister, who will be in- charge of the new division, is likely to be appointed soon, reliable sources said.
The World Bank has long been suggesting the government to vest the regulatory authority over banks and financial institutions in the Bangladesh Bank, instead of the MoF.
"The new division, the Bank and Financial Division, has been approved at the meeting," a government secretary, also a member of the secretary-committee on Administrative Affairs, told the FE.
"The new Division will be operational soon after completing some other formalities."
A full-fledged government secretary will head the division under the same ministry.
The division will have two joint secretaries, four deputy secretaries and 12 senior assistant secretaries.