Banks’ disclosure rules changed

Central bank gives seven days to make disclosures after adopting audit reports

FE Report | Wednesday, 11 November 2020

The central bank has amended its instruction, allowing banks to provide their market disclosures within seven working days of finalising the annual audited financial statements, instead of March or September.
Under the amendments, the banks are now instructed to provide required market disclosures in both qualitative and quantitative forms within seven working days of finalising the annual audited financial statements as per the allowable time limit under Section 40 of Bank Company Act 1991, according to a notification, issued by the Bangladesh Bank (BB) on Tuesday.
"We've amended the provision to rationalise the timeframe for submission of the banks' market disclosures," a senior official of the BB told the FE while explaining main objective of the amendment.
The banks are now allowed to finalise their annual financial statements within the next two months after ending the calendar or fiscal year in line with the existing Bank Company Act, according to the central banker.
"The BB has been empowered to give maximum two months more, if any bank seeks more time from the central bank for finalising its annual financial statements," he noted.
Talking to the FE, another central bank official said the banks will have to provide market disclosure along with annual audited financial statements on their websites within seven working days after finalising the documents.
The market disclosure on the bank's website should be made through a webpage, titled 'Disclosures on Risk Based Capital (Basel III)', and the link to the page should be prominently provided on the home page of the website.
The banks will have to submit a copy of their market disclosures to the BB's Department of Off-site Supervision, he added.
Earlier, the banks were instructed to provide required disclosure at the end of March each year, excepting the banks that close their accounts at the end of June, in line with the Guidelines on Risk Based Capital Adequacy (RBCA).
The banks, which close their account at the end of June, were asked to provide all required disclosures in both qualitative and quantitative forms, at the end of September each year along with the annual financial statements.
On December 21, 2014, the central bank issued the Guidelines on RBCA to properly implement Basel-III framework in the banking sector.

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