Bank-Insurance
Banks on High Alert to Thwart Cyberattacks
Commercial banks are on high alert following a series of directives issued by Bangladesh Bank (BB) aimed at bolstering their defenses against cyberattacks. In response to the BB’s instructions, Mutual Trust Bank’s CEO, Syed Mahbubur Rahman, assured that the bank is working tirelessly to ensure the security of all its operations. Rahman emphasized that the bank has swiftly implemented the necessary measures to counter the potential threat, ensuring the safety of deposits and transactions. Similarly, Selim RF Hussain, CEO of BRAC Bank, echoed this sentiment, highlighting the collaborative efforts of an expert team aligned with government entities to mitigate potential cyber threats.
The alarm was raised by BB, revealing that a group of hackers had issued a warning of a cyber attack, slated for August 15. In reaction to this imminent threat, the government’s ‘Computer Incident Response Team’ (CIRT) issued a cybersecurity alert. CIRT’s statement on August 7 highlighted the potential for disruptions to State Critical Information Infrastructure (CII), as well as operations of financial institutions, healthcare providers, and both government and private sectors. Organizations concerned were urged to proactively prepare for potential cyber incidents, regardless of scale.
BB’s directives to banks and financial institutions encompassed eleven key measures aimed at preventing cyber attacks. Among these, a prominent directive was the round-the-clock monitoring of network infrastructure, especially outside regular office hours, to ensure data integrity. Additionally, stringent control over website access was emphasized as a means to curtail cyber threats. Complementary to these measures, adherence to the latest Open Web Application Security Project (OWASP) guidelines was recommended, alongside the implementation of various protocols to identify and counter insecure activities on networks.
In response, CIRT extended vital recommendations to safeguard the infrastructure of relevant organizations against cyber attacks. These included the deployment of firewalls to scrutinize incoming HTTP/HTTPS traffic, identification and filtering of malicious requests, and the safeguarding of critical services such as DNS and NTP. The significance of securing user input validation and maintaining website backups was also underscored. The incorporation of HTTPS, supported by SSL and TLS encryption, was encouraged to bolster website security. Finally, organizations were urged to promptly report any suspicious activities, employing up-to-date technological solutions.
The Bangladesh Bank has adjusted the dollar price to Tk117 from Tk110 by introducing the crawling peg exchange rate mechanism.
Under this new approach, the bank will buy and sell dollars with Tk117 as the mid rate.
This decision was reached during a meeting of the monetary policy committee on Wednesday, May 8th.
Additionally, the committee has opted to discontinue the SMART lending rate mechanism, allowing banks to set their lending rates based on dollar demand and supply, according to a circular issued after the meeting.
The crawling peg system permits a currency with a fixed exchange rate to fluctuate within a specified band of rates, combining features of both fixed and floating exchange rate regimes.
On May 5th, Bangladesh Bank Governor Abdur Rouf Talukder announced the adoption of a market-based interest rate and the implementation of a crawling peg system to stabilize the foreign exchange rate.
He stated that the central bank is collaborating with prominent economists and bankers to devise a contractionary monetary policy aimed at curbing inflation and restoring macroeconomic stability.
Earlier, on April 2nd, the World Bank stressed the importance of a crawling peg mechanism aligned with market-clearing exchange rates to narrow the gap between formal and informal exchange rates, as outlined in the latest Bangladesh Development Update report.
Meanwhile, the International Monetary Fund (IMF) has advocated for a market-based dollar rate. In January 2023, the IMF attached several conditions to a $4.7 billion loan facility over a three-and-a-half-year period. Bangladesh has received two installments of the loan by fulfilling nearly all conditions, except for the reserve requirement.
On Sunday (May 5), the Bangladesh Bank (BB) once again dissolved the board of directors of the National Bank.
In a letter addressed to the managing director of the National Bank, the central bank announced the cancellation of the existing board of directors.
Furthermore, the banking regulator established a new board of directors and appointed Khalilur Rahman, the bank’s sponsor director, as the new chairman, according to the BB’s communication.
Mezbaul Haque, spokesperson for the Bangladesh Bank, commented on the development, stating that the action was taken to bolster the bank’s board of directors.
This move comes after a similar action in 2023 when the central bank ordered the dissolution of the National Bank’s board and formed a new one.
Prime Bank PLC has recently received Bancassurance Business commencement approval from Bangladesh Bank.
Mohammad Shahriar Siddiqui, director, BRPD, Bangladesh Bank handed over the approval letter to Nazeem A Choudhury, deputy managing director – consumer banking of Prime Bank PLC, at a ceremony held at Bangladesh Bank recently.
Mohammad Ashfaqur Rahman, additional director, BRPD, Bangladesh Bank, Ashraful Alam, joint director, BRPD, Bangladesh Bank, Miah Mohammad Rabiul Hasan, chief bancassurance officer, Prime Bank PLC were also present at the ceremony.
Bancassurance is a partnership between a bank and insurance company that will allow a Bank to sell insurance products of the insurance company through its distribution channels.
To offer a wide range of products to its customers and ensure best in class service, Prime Bank has partnered with leading insurance companies National Life Insurance Company Ltd. and Reliance Insurance Ltd.
Being one of the leading banks of the country, Prime Bank hopes to cater to the needs of insurance requirements of its customers through Bancassurance, in Bangladesh market.
