Department Lawyers

Banking and finance law in Bangladesh regulates the financial sector, including banks, non-bank financial institutions (NBFIs), capital markets, and insurance companies. The legal framework is designed to ensure financial stability, consumer protection, and transparency.

Key Aspects:

1. Regulatory Bodies:

   • Bangladesh Bank: The central bank oversees the financial sector, issues banking licenses, and ensures compliance with monetary policy.
   • BSEC: The Bangladesh Securities and Exchange Commission regulates capital markets.

2. Key Laws:

   • Banking Companies Act, 1991: Governs banking operations, including licensing, capital requirements, and mergers.
   • Foreign Exchange Regulation Act, 1947: Controls foreign exchange transactions.
   • Money Laundering Prevention Act, 2012: Mandates AML measures for financial institutions.

3. Consumer Protection:

   • Banking Companies Act, 1991: Includes consumer protection provisions.
   • Financial Consumer Protection Guidelines: Issued by Bangladesh Bank to ensure fair treatment of consumers.

4. Corporate Governance:

   • Corporate Governance Guidelines for Banks: Promote good governance practices within banks.
   • Companies Act, 1994: Governs corporate structure and shareholder rights.

5. Loan Recovery and Insolvency:

   • Artha Rin Adalat Ain, 2003: Focuses on loan recovery.
   • Bankruptcy Act, 1997: Provides a framework for insolvency.

6. Islamic Banking: Operates under guidelines based on Shariah principles, such as the prohibition of interest.

The sector is continuously evolving with reforms aimed at financial inclusion, digital banking, and regulatory alignment with international standards.