BFID to be renamed FID

The government has taken decision to change the name of Bank and Financial Institutions Division (BFID) aiming to ensure equal representation of all entities under the division, officials said.
BFID under the ministry of finance (MoF) is to be renamed "Financial Institutions Division (FID)" which will come into effect immediately, they added.
The decision came from an inter-ministerial meeting held last month with BFID Secretary Dr M Aslam Alam in the chair, according to meeting sources.
The country's insurance association and different agencies were demanding to change the name of the existing division.
BFID deals with the law and policy issues related to the banks, non-bank financial institutions, capital market, insurance sector and micro-credit sector.
Earlier, the government in January 2010 abolished the banking subdivision of the finance division under the MoF. Later, the government established a separate division named BFID.
The division also coordinates the activities for formulating policies on capital adequacies as well as review of related policies and programmes, the officials said, adding that but the existing name of the division is not reflected in its present activities.
As the name of the division begins with word 'bank', people think that the activities of all banking sectors are executed by the division. So, it is needed to remove such misconception, they mentioned.
The division carries out the coordination activities with different regulatory bodies like Bangladesh Bank, Bangladesh Securities and Exchange Commission (BSEC), Insurance Development and Regulatory Authority (IDRA), Microcredit Regulatory Authority (MRA), Bangladesh Institute of Capital Market (BICM) and Bangladesh Insurance Academy (BIA) etc, according to the ministry.
There are four state-run banks, nine specialised banks, two insurance companies and three financial intuitions under the division.
A high official of the division said the existing name is not properly reflected in its activities according to the division's allocation of business. "So, the proposal for changing the name of the division is time-befitting and reasonable."
He said allocation of business of the BFID will be prepared correctly in accordance with its mission and vision after renaming of the division.
Mr Aslam Alam told the FE that insurance sector demanded for inclusion of its name in the division. "We are working with stock exchange, micro-credit and others. So, it will not be wise decision to include only insurance sector in the division."
He added: "We have taken decision to bring all the sectors under the division into one."
He, however, said the proposal for changing the name of BFID and allocation of business would be sent to the cabinet division for vetting.             
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