FSD Circular No. 01: User Manual on the Input Template of 'Financial Projection Model'

Page 1 of 2 Website: www.bangladesh-bank.org www.bangladeshbank.org.bd Financial Stability Department Bangladesh Bank Head Office Post Box No.325 Dhaka 19 Falgun 1420 FSD Circular No. 01 Date:------------------------- 03 March 2014 Chief Executives All Scheduled Banks in Bangladesh Dear Sir, User Manual on the Input Template of ‘Financial Projection Model’. The increasing complexity of the financial system over the years in Bangladesh necessitates for appropriate supervisory tools that will address the vulnerability and ensure the financial soundness of individual bank as well as the whole banking system. In this regard, Bangladesh Bank has designed a tool named "Financial Projection Model (FPM)" with the aims to assess the strengths and weaknesses of all banks individually in the financial system based on probable shock scenarios, to perform comprehensive scenario analyses to identify risks and to improve Bangladesh Bank's view over the risk management capacity of individual bank. All scheduled banks are required to take part in the implementation of the Model from March 2014. To facilitate the implementation of the Model, an input template and a user manual have been developed. All scheduled banks have to collect the soft copies of those from Financial Stability Department (FSD), Bangladesh Bank on or before 31 March 2014. It has been decided that, henceforth all scheduled banks will start quarterly reporting to FSD as per the user manual and the input template. The reporting schedule is as follows: Quarter Period Reporting Deadline (on or before) March Quarter January 01- March 31 May 15th June Quarter April 01- June 30 August 15th September Quarter July 01- September 30 November 15th December Quarter October 01 – December 31 February 15th of the next year

Page 2 of 2 Initially the scheduled banks will submit appropriately filled in one (01) input template for the quarters from December 2011 to March 2014 (10 quarters) on or before 15th June, 2014. From June 2014 Quarter and onwards, the banks will submit the filled in template within the aforementioned schedules. The banks have to submit only the soft copy of the template to General Manager, Financial Stability Department (via: gm.fsd@bb.org.bd). The banks 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, preferably from the email address of Head of Finance/Accounts/Compliance Division. Any request for the extension of deadline(s) and the use of any personal email address for sending data on FPM are strongly discouraged. Please acknowledge receipt.

Yours sincerely, (Debashish Chakrabortty) General Manager Phone: 02-9530279