[🇧🇩] Banking System in Bangladesh

Saif · Friday at 7:43 PM

Importance of training for banks

Every year, National Training Day in Bangladesh is observed on January 23. This year, Bangladesh observed the 30th anniversary to emphasise the importance of training for human resource development, skill enhancement, and economic growth. Over the years, Bangladesh Institute of Bank Management (BIB

thefinancialexpress.com.bd

Importance of training for banks

Md Ezazul Islam

Jan 23, 2026 23:19
Updated :

Jan 23, 2026 23:19

Every year, National Training Day in Bangladesh is observed on January 23. This year, Bangladesh observed the 30th anniversary to emphasise the importance of training for human resource development, skill enhancement, and economic growth. Over the years, Bangladesh Institute of Bank Management (BIBM) has standardised training for bank officials to disseminate knowledge and develop human capital. A substantial budget is allocated to training and the transformation of basic skills into advanced technology-driven modules, focusing on financial analytical skills, digital literacy, leadership, and team building.

Training and development are important because they build capability, confidence, and consistency - both at individual and organisational levels. It improves knowledge and skills, productivity and performance, boosts confidence and motivation, ensures consistency and standards, encourages adaptability to change, supports career growth and retention, which drives organisational success. In 2026, training remains a critical investment for organisational sustainability amid rapid technological shifts.

There are numerous training institutes at the national and private levels to perform these activities. BIBM is one of the national-level apex training institutes for the banking and finance fraternity.

Training for bank officials is more prevalent because banking is a highly regulated industry, where regulations, circulars, operations, and local and international standards are changing rapidly with technological advances. For example, the recent regulatory decision to implement IFRS-9 for expected credit loss calculation and loan-loss provisioning, effective from 2027, and risk-based supervision has been in place since January 1 2026. Bankers need to prepare themselves by 2026, with training a must to increase dexterity and adaptability.

BIBM plays a pivotal role in providing training, conducting research on these contemporary issues, and disseminating knowledge through seminars and symposia. Since 1974, BIBM has trained a total of 121,605 officers from banks and financial institutions, and in 2025, the number of attendees in training programs was 5,240.

However, the upcoming HR operational trends include a hybrid work model, a transition from employee well-being to a healthy organisation, cybersecurity threats, power skills, embracing the Gig Economy, DEI (Diversity, Equity and Inclusion), reskilling and upskilling, and keeping the human touch alive. BIBM designed the Academic Calendar 2026 with these issues in mind, and we will unveil it today (January 24, 2026).

One important part is that COVID-19 shifts the mentality of corporate talent in HR management. Most of the organisations (88 per cent) around the world encouraged their employees to work from home, 97 per cent organisations controlled and cancelled their official travelling, 70 per cent have taken a cost-cutting approach, 50 per cent stop new hiring, 32 per cent started virtual meeting newly. Also, 48 per cent allowed their employees to take sick leave, and 20 per cent increased paid time off (PTO). These attitudes shift the methods and modality of employees' training and development, which is one of the key challenges of training.

Globally, organisations allocate an average of 2 per cent to 5 per cent of their total operating budget for employee training and development. The general instruction from leaders is to allocate 1 per cent to 3 per cent (up to 5 per cent for high-growth sectors) of an employee's total yearly salary toward their individual training. In Bangladesh, the government does not mandate a fixed "percentage of salary" that must be spent on training for every employee.

The training budget utilisation rate for FY 2024-25 for government officials is 82.75 per cent, while in the banking sector it is 46.57 per cent. BIBM has a budget for employees' training and development, but the low realisation needs attention for proper strategic planning.

Post-training utilisation (PTU), sometimes termed as training transfer rate, remains a significant challenge for the organisation. Globally, only 12 per cent of employees actually apply new skills from Learning & Development (L&D) programs to their daily work. We rarely consider the PTU for short-term training and development, while in the medium and long term, it remains meagre.

Moreover, while approximately 70 per cent of employee skills are learned through direct on-the-job experience, 20 per cent are acquired through developmental relationships such as mentorship and coaching, and only 10 per cent of workplace skills are derived from formal coursework or training sessions. Hence, developing workplace skills through off-the-job training is a challenge for the banking sector as well. Here, we need to integrate practical and critical cases into the training, alongside the latest changes in banking policies and regulations, which are more predominant.

The trained employees face obstacles in utilising the knowledge they have gained through training and development due to outdated equipment or a lack of management support. Top management needs to align the employees' knowledge with their area of work.

Further, the right selection of employees for the right training program is also important; otherwise, the need for training will raise questions about its efficacy.

Over the top, top management considers training and development a cost centre, which needs to be shifted to the investment centre. Training and development in the short run may seem like a cost centre, but in the long run, it is an investment.

Hence, training as an investment centre, designing a complex organisational structure for the hybrid flexible work model, balancing family-work life, upskilling and reskilling the employee knowledge and skills, right selection of employees for the right training program, proper PTU, budget utilisation, long-term strategic plan, and empowering employees by increasing power skills are the keys to organisational sustainability. To address these issues, BIBM has already included training, workshops, research projects, and lecture programs that other banks and finance companies should emulate to enhance organisational resilience and sustainability.

Dr Md Ezazul Islam, Director General, Bangladesh Institute of Bank Management (BIBM).

Saif · 2026-01-24T19:26:19-0500

Stepping up banking reform efforts

Bangladesh Bank has long been expected to act as a strong regulator without being given the legal space to do so. The latest move to amend the Bangladesh Bank Order and the Bank Company Act is an attempt to reverse that pattern by redefining who holds authority over banks and on what terms. Few now

thefinancialexpress.com.bd

Stepping up banking reform efforts

Published :
Jan 24, 2026 22:31
Updated :
Jan 24, 2026 22:31

Bangladesh Bank has long been expected to act as a strong regulator without being given the legal space to do so. The latest move to amend the Bangladesh Bank Order and the Bank Company Act is an attempt to reverse that pattern by redefining who holds authority over banks and on what terms. Few now dispute that the central bank must be insulated from day-to-day political pressure if it is to regulate effectively. The central bank governor himself has pressed for swift amendments to the country's banking laws to restore discipline and credibility. This is essential because any central bank vulnerable to external pressure cannot enforce discipline, curb reckless lending or hold powerful defaulters to account. It also cannot maintain the credibility of the financial system in the eyes of depositors and international partners. However, giving the central bank freedom alone does not ensure that this power will always be exercised responsibly. What remains at issue, and rightly so, is whether the current reform push sufficiently recognises that independence without clear accountability can create new risks even as it tries to resolve old ones.

That precise balance constitutes the central challenge of this legislative effort. The proposed laws must empower the institution while simultaneously binding it within a framework of transparency. A framework that grants sweeping powers without explicit accountability mechanisms invites future abuse. A powerful governor today may act with restraint and professionalism, but there is no guarantee that successors will do the same. Without safeguards, the same autonomy that protects the regulator from political interference could also shield it from scrutiny when decisions are arbitrary, inconsistent or influenced by other interests. This is why the law must set clear rules for decision making, establish transparent appointment processes for senior officials and provide independent oversight arrangements capable of reviewing regulatory actions without undermining operational independence. Parliamentary reporting, judicial review and regular public disclosure are anything but obstacles to autonomy. They are what give it legitimacy.

Simultaneously, the Bank Company Act amendments must tackle the source of the sickness within the banks themselves. Granting the central bank autonomy is pointless if the institutions it regulates are allowed to remain dysfunctional. This is especially critical given the pervasive culture of poor governance, lifetime directorships and family-dominated ownership structures that permeate financial institutions. Furthermore, the controversial practice of using taxpayer money to provide artificial life support to insolvent banks creates a dangerous moral hazard. For these reasons, this legislation must mandate professional, term-limited bank boards, effectively separate lending decisions from boardroom influence and establish credible mechanisms for resolving insolvent institutions.

As the interim government's tenure draws to a close, the pressure to act is immense but the priority must be the quality of legislation over the speed of its passage. Rushing through flawed bills would be a disservice to the nation's long-term economic health. If the complex task of finalising both acts proves too daunting within the remaining time, leaving behind comprehensive, well-reasoned notes for the next elected government is a responsible alternative. What matters most is coherence. Central bank autonomy and banking reform legislation must be aligned, mutually reinforcing and grounded in the same philosophy of balanced power. It would be inconsistent to insist on strict discipline for banks and borrowers while leaving the regulator largely beyond question. Reform must be even-handed if it is to command public confidence.