Forty per cent of the bank employees are unwilling to work in the banks’ internal control, compliance department due to huge workload in the department, a study report of the Bangladesh Institute of Bank Management revealed.
The report was presented at a discussion organised by the BIBM on ‘Internal Audit and Performance of Banks in Bangladesh’ at the BIBM auditorium in Dhaka on Thursday.
BIBM director general Toufic Ahmad Choudhury chaired the discussion where Bangladesh Bank deputy governor Abu Hena Mohammad Razee Hassan, former BB executive director and BIBM supernumerary professor Yeasin Ali, former Islami Bank Bangladesh managing director Md Forid Uddin Ahmed, Prime Bank audit committee chairman Shamsuddin Ahmad, former Pubali Bank managing director Helal Ahmed Chowdhury, spoke, among others.
BIBM faculty member Md Abdul Kayum Mohammad Kibria, in the keynote paper, said that the employees in the banks’ ICCD were facing workload as only 1.52 per cent employees of a bank were engaged in the department.
Each member of the audit team overseas four branches while an audit team handles 22 branches of the bank concerned, he said.
Due to huge pressure and less scope for giving time to family, 40 per cent of the bank employees are unwilling to work in the audit department, Kibria said.
On the other hand, only 19 per cent employees want to work in the department to get respite from target-oriented work, he said.
Razee Hassan said the central bank has issued separate guidelines on the internal control, compliance for governance team of the banks.
Public fund would be safe in the banks once effective internal audit is ensured, he said emphasising on honest and ethical functioning of bank board.
In some cases, the central bank shows relaxation regarding the internal audit of banks, Yeasin said.
The former BB executive director also called on the central bank to strengthen its monitoring over the banks.
Forid Uddin said strengthening of banks audit management would help reduce loan-related risks largely.
‘All the banks should ensure liberty for the audit department with a view to having strong management. But, bank board does not want to do so,’ Shamsuddin said.
‘Instead, bank board pressurises managing directors to sanction large loans and the board, in some cases, announces up to one per cent bonus for meeting loan disbursement target. Such practice is not right,’ he said.
Helal said banks’ internal audit system must be strengthened along with ensuring appointment of efficient manpower.
Ensuring efficient manpower with proper training would help banks prevent many of the irregularities, he said.
Toufic said that none could achieve success without internal audit and internal audit was more important in banks than other entities.