Bangladesh Bank has launched Integrated Supervision System to bring all banks and non-bank financial institutions of the country under online monitoring.

With the launch of the system, the central bank can view online the financial statuses of the banks and financial institutions across the country.

Bangladesh Bank Governor Dr Atiur Rahman inaugurated the system at the central bank headquarters in Dhaka on Tuesday.

A Bangladesh Bank officer can now supervise a bank located in remote area by sitting at his desk in Dhaka as he will be able tom see the bank’s financial status online.

“Integrated Supervision System is to report on banks online,” said Governor.

He said the new system is associated with automatic risk identification method, multidimensional analytical tables, charts and graphs.

Besides, the observation period for the activities of banks’ head offices and branches will come down to one month thanks to the system.

Taking decisions in the central bank will be faster as well.

In Addition, the field supervisors can take necessary information from website before going to inspection of a bank.

Officials said the banks and financial institutions must develop an effective management information system (MIS) to supply information to the integrated supervision system.

The integrated system will also help banks and non-bank financial systems monitor their own branch offices across the country, said the central bank source.

The source said it will increase the effectiveness of the internal control system of the banks.

In line with the suggestions of donors, a parliamentary panel on Tuesday recommended that the government reduce the number of branches of the state-owned banks to cut loss.

The parliamentary standing committee on finance ministry justifying its recommendations said many of the branches of Sonali, Janata, Agrani, Rupali and Basic banks in the rural areas incurred losses bleeding the economy.

“In many cases, we see branches of more than one state-owned bank in a small area. But none of them are profitable,” AHM Mustafa Kamal, the committee chairman, told the Dhaka Tribune after a meeting at the parliament building.

He said the banks could work through “merger of the branches” or could leave it to the private sector.

The successive governments ignored global lenders’ prescription to trim state-owned banks which provide people with basic banking services like distribution of subsidy and agri-loans, teachers’ salary, allowances for freedom fighters and elderly people through their countrywide network of branches.

Private banks operate mainly in the urban or semi-urban areas.

According to the working paper presented at the meeting, Sonali Bank’s capital deficit (up to June 30) stands at Tk45.44bn while the amount for Janata Bank is Tk16.23bn. Agrani Bank’s deficit is Tk24.9bn while Rupali Bank Tk4.25bn.

Mustafa Kamal said because of the increasing losses of the state-owned banks, “management turns to the government for capital to meet its day-to-day operation.”