How BRAC Bank became country's safest bank

Strong corporate governance has enabled BRAC Bank to build public trust, strengthen financial resilience and establish itself as one of the safest banks in Bangladesh, said Tareq Refat Ullah Khan, Managing Director (MD) and Chief Executive Officer (CEO) of the bank, in an exclusive interview with The Financial Express (FE) recently.
The Bank has earned the trust through strong governance, financial resilience, regulatory compliance and consistent performance over time, rather than through branding alone, the top executive of the leading private commercial bank explained.
He also highlighted BRAC Bank's journey from a pioneer in SME banking to one of the country's most trusted financial institutions, underpinned by prudent risk management, sound asset quality and a strong customer-centric approach.
Following is the full text of the interview:
Question (Q): BRAC Bank is celebrating its 25th anniversary this year. Looking back, what do you consider the bank's most significant achievement over the past 25 years?
Answer (A): BRAC Bank was founded by Sir Fazle Hasan Abed with a clear mission -- to address the financing needs of the country's 'missing middle', particularly SME entrepreneurs. Over the past 25 years, we have financed more than 2.0 million SMEs, contributing to the creation of over 10 million jobs across Bangladesh.
Today, our network spans more than 2,300 locations, while our Astha app processes around Tk 250 billion in transactions every month. Our retail loan portfolio has exceeded Tk 520 billion, and our subsidiary, bKash, now serves nearly 80 million customers, expanding financial inclusion across the country.
We have also built a strong presence in corporate and international banking. CorpNet handles more than Tk 230 billion in corporate transactions monthly, while our recent US$96 million standalone financing for an Aframax oil tanker remains the largest single-bank shipping finance deal in Bangladesh.
Most importantly, we have earned the trust of our customers through strong governance, prudent banking and consistent performance. Looking ahead, our ambition is to become Bangladesh's most impactful bank and eventually the country's first multinational bank with full-scale overseas operations.
Q: What, in your view, are the key factors behind building a safe bank in Bangladesh?
A: A safe bank is built on strong governance, financial resilience, sound risk management and consistent regulatory compliance. In today's banking environment, trust has become the most valuable asset, and it is earned through prudent management rather than branding alone.
Corporate governance is the foundation of a safe bank. Independent oversight,

transparency and disciplined decision-making help ensure long-term stability. External assessments also matter. BRAC Bank is the only bank in Bangladesh with international credit ratings from both S&P Global and Moody's, reflecting its financial strength and risk management standards.
Asset quality is another key indicator. While the banking sector's overall non-performing loan (NPL) ratio exceeded 30 per cent at the end of 2025, BRAC Bank's NPL ratio stood at just 2.27 per cent. We also maintain strong liquidity, with an Advance-to-Deposit Ratio of 63 per cent, a capital base of over Tk 100 billion and a record after-tax profit of Tk 22.51 billion in 2025.
Customer confidence is reflected in deposit growth. While the banking sector's deposits grew by 11.51 per cent in 2025, BRAC Bank recorded nearly 27.5 per cent growth, adding more than Tk 210 billion in new deposits. Ultimately, strong governance, sound financials, transparency and customer trust together define a safe and resilient bank.
Q: What is your most important piece of advice for building a bank that earns public trust and sustains long-term growth?
A: If I had to identify one factor above all others, it would be corporate governance. In banking, governance is the foundation of trust, resilience and sustainable growth. A bank with strong governance is better equipped to manage risks, protect depositors' interests and create long-term value.
Good governance is built on independent oversight, sound risk management,  regulatory compliance, transparency and ethical leadership. The relationship is straightforward: strong governance builds trust, trust attracts customers and investors, and sustained trust drives growth and resilience.
A bank's reputation is ultimately tested during challenging times, not prosperous ones. Institutions with strong governance are better positioned to withstand economic shocks and maintain public confidence. In my view, corporate governance is the single most important ingredient in building a bank that earns trust, sustains growth and stands the test of time.
Q: How does BRAC Bank ensure that strong deposit growth does not compromise lending quality and asset quality?
A: Protecting depositors' funds is a bank's foremost responsibility, and sustainable growth must always be backed by prudent lending and strong risk management. Rapid deposit growth should never lead to weaker credit standards.
At BRAC Bank, we manage this through a diversified loan portfolio across corporate, commercial, SME, retail, and agricultural segments, reducing concentration risk. Every lending decision is guided by a robust risk appetite framework, rigorous credit assessment and continuous portfolio monitoring to identify potential risks at an early stage.
We view deposit growth and asset quality as complementary rather than competing objectives. The trust our customers place in us through their deposits carries the responsibility to deploy those funds prudently. We believe sustainable growth is achieved when strong governance, disciplined lending and sound risk management work together to protect both depositors and the bank's long-term stability.
Q: With the banking sector's non-performing loans exceeding Tk 5.5 trillion, how has BRAC Bank maintained strong asset quality?
A: We have maintained strong asset quality by remaining committed to our founding principles of good governance, international best practices and full transparency. These are not just values -- they guide every lending decision we make.
We do not pursue business opportunities that compromise our risk standards, even if they appear attractive in the short term. Instead, every lending decision is backed by disciplined credit assessment, strong governance and prudent risk management. This consistent approach has enabled us to protect asset quality through different economic cycles and build the trust of our customers. We believe that sustainable growth comes from staying true to these principles, which is why BRAC Bank has established itself as one of the safest banks in the country.
Q: How important are digital transformation and cyber security in building a safe bank, and how is BRAC Bank strengthening its digital resilience?
A: In today's banking environment, digital security is as important as financial strength. As banking becomes increasingly digital, protecting customer data and transactions has become a core responsibility rather than just an IT function.
At BRAC Bank, we have built a robust cybersecurity framework with multi-factor authentication, data encryption, real-time monitoring, and strict compliance with Bangladesh Bank (BB)'s regulatory requirements. We are also investing in AI- and machine learning-based threat detection, stronger incident response capabilities, and regular vulnerability assessments.
Equally important is customer awareness. We conduct regular campaigns to help customers identify phishing and other cyber threats. Together with our dedicated Cyber Incident Response Team, Business Continuity Management and Disaster Recovery frameworks, these measures ensure that BRAC Bank remains secure, resilient and well prepared against evolving cyber risks.
siddique.islam@gmail.com