Premier Bank Advances Risk Governance Framework

Premier Bank PLC has reaffirmed its commitment to resilient, forward-looking, and sustainable banking practices through the successful convening of its Annual Risk Conference 2025 at the bank’s Head Office in Dhaka. The conference, conducted under the theme “Proactive Risk Management for Sustainable Growth,” brought together members of the Board of Directors, senior management, and heads of key departments to deliberate on the evolving and increasingly complex risk landscape in Bangladesh’s banking sector.

Delivering the keynote address as Chief Guest, Dr Arifur Rahman, Chairman of the Board of Directors, emphasised that risk awareness must now be embedded across all levels of the organisation. He highlighted that prudent risk management is no longer confined to regulatory compliance alone but has become a strategic imperative that ensures sustainable growth, protects depositor confidence, and reinforces long-term financial stability. In an era marked by global economic volatility, tighter regulations, and heightened market scrutiny, he stressed the importance of anticipatory risk management rather than reactive approaches.

The conference was presided over by Md Sazzad Hossain, Independent Director and Chairman of the Risk Management Committee, who underscored the significance of strong corporate governance, effective internal controls, and a forward-looking risk culture. He noted that institutions capable of early identification of vulnerabilities are better positioned to withstand economic shocks and maintain operational continuity. Special guests Syed Faridul Islam, Chairman of the Executive Committee, and M Nurul Alam, Chairman of Premier Bank Securities Limited, shared insights on board-level oversight, ethical market conduct, and the role of discipline in sustaining institutional credibility.

The strong participation of senior management reflected Premier Bank’s whole-of-bank approach to risk governance. Attendees included Md Monzur Mofiz, Managing Director (Current Charge); Nasim Sekandar, Additional Managing Director; several Deputy Managing Directors; the Chief Credit Officer; and Md Naquibul Islam, SEVP and Chief Risk Officer. Their engagement highlighted the integration of risk considerations into strategic decision-making across all business lines.

Deliberations focused on interconnected risk areas, including credit concentration, capital adequacy pressures, liquidity stress, funding resilience, governance challenges, and evolving regulatory expectations. Speakers emphasised the need to align the bank’s risk governance framework with Basel III standards and the latest Bangladesh Bank guidelines, particularly in capital planning and stress testing.

A technical session titled “Minimum Capital Requirement (MCR) and ICAAP: A Case Study” was presented by Mohammed Nasir Uddin, Assistant Vice President of the Risk Management Division. He illustrated how provisioning shortfalls can adversely affect the Capital to Risk-Weighted Assets Ratio (CRAR) and leverage ratios, underscoring the necessity of forward-looking capital planning.

Adding an academic perspective, Md Alamgir and Dr Md Shohid Ullah, Associate Professors at the Bangladesh Institute of Bank Management (BIBM), shared insights on contemporary risk management practices and supervisory expectations, emphasising the growing importance of enterprise-wide risk integration.

The conference concluded with a collective commitment to strengthen proactive risk management, enhance capital planning discipline, and uphold strict adherence to Basel III principles, positioning Premier Bank to navigate uncertainty with prudence and foresight.

Key Focus Areas of the Conference

Through this strategic initiative, Premier Bank has once again demonstrated its determination to pursue sustainable growth by reinforcing strong governance, disciplined capital management, and a comprehensive enterprise-wide risk framework.