Govt to set up insurance dev, regulatory body
Friday, 11 June 2010
FE Report
The government will establish an 'Insurance Development and Regulatory Authority' very soon to facilitate the country's insurance sector.
"In order to synchronise the activities of the existing 'Insurance Department' with Insurance Act, to maintain proper control and supervision of the sector, to protect the interests of policy holders and beneficiaries under insurance policies, to strengthen the financial base of insurance sector and to enhance the capacity to manage the sector, a law titled 'Insurance Development and Regulatory Authority Act 2010' has been enacted in Parliament," Finance Minister Abul Maal Abdul Muhith said in his budget speech Thursday.
He also said insurance plays an important role in expanding trade and commerce in a country and reducing the risk-related problems in people's lives.
"For this purpose, a new law titled 'Insurance Act 2010' to update the 'Insurance Act 1938' has been enacted," the minister added.
About strengthening the banking sector, Mr Muhith said Basel-II will establish a direct linkage between risk management and risk-based capital adequacy requirement in the sector.
Bangladesh has started implementing Basel-II in its entirety since 1 January 2010.
"In order to raise the level of efficiency of the banking sector of
Bangladesh to international standards by further strengthening of their activities and to make capital reserve more risk-tolerant and stronger, Basel-I along with Basel-II are being implemented," the minister added.
The government will establish an 'Insurance Development and Regulatory Authority' very soon to facilitate the country's insurance sector.
"In order to synchronise the activities of the existing 'Insurance Department' with Insurance Act, to maintain proper control and supervision of the sector, to protect the interests of policy holders and beneficiaries under insurance policies, to strengthen the financial base of insurance sector and to enhance the capacity to manage the sector, a law titled 'Insurance Development and Regulatory Authority Act 2010' has been enacted in Parliament," Finance Minister Abul Maal Abdul Muhith said in his budget speech Thursday.
He also said insurance plays an important role in expanding trade and commerce in a country and reducing the risk-related problems in people's lives.
"For this purpose, a new law titled 'Insurance Act 2010' to update the 'Insurance Act 1938' has been enacted," the minister added.
About strengthening the banking sector, Mr Muhith said Basel-II will establish a direct linkage between risk management and risk-based capital adequacy requirement in the sector.
Bangladesh has started implementing Basel-II in its entirety since 1 January 2010.
"In order to raise the level of efficiency of the banking sector of
Bangladesh to international standards by further strengthening of their activities and to make capital reserve more risk-tolerant and stronger, Basel-I along with Basel-II are being implemented," the minister added.