INTERBANK TRANSACTION MATRIX TEMPLATE. REF: FSD CIRCULAR NO. 02 DATED 18.12.2013.

Interconnectedness among the banks and other depository institutions sometimes causes risks for themselves. Moreover, if the problem is systemic then such risks will not remain confined within a specific institution rather it will cause risks to other interconnected financial institutions, e.g., banks and non-bank financial institutions (NBFI). With an aim to prepare banks and NBFIs for withstanding financial crisis and make them aware of potential threats, endogenous or exogenous, Bangladesh Bank is going to introduce a tool “Interbank Transaction Matrix” from January, 2014. It is a monitoring tool to be used to observe liquidity management of banks and NBFIs. This matrix would help in finding such institutions and give early warning signals for safeguarding financial institutions as well as the system from liquidity stresses in financial institutions and interbank market. It will also uncover the interrelation and interdependence in the interbank market. In this regard, a ‘Data Template’ and a ‘User Manual’ have been prepared.

It has been decided that all scheduled banks and NBFIs will start monthly reporting henceforth as per the User Manual and specified Data Template (Input Format), contained in a Compact Disk (CD), within six (6) working days after the end of each month. Initially banks and NBFIs will submit appropriately filled in separate Data Template for the month of July to December, 2013 (6 individual months) within 28.01.2014. Banks and NBFIs have to collect the CD from the Financial Stability Department, Bangladesh Bank within 02.01.2014.

From January, 2014 and onwards, banks and NBFIs will submit the Template within the aforementioned deadline.

Banks and NBFIS have to submit only the softcopy of the Template through email to General Manager of Financial Stability Department (gm.fsd@bb.org.bd). They are not required to submit hard copy of the Template. The filled in Template should be sent from the official email address of concerned bank/ NBFI, preferably from Head of Treasury/ Compliance. Use of any personal email address is strongly discouraged.

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