Each bank has to establish a separate internal audit (IA) department, which will speed up the recovery of loan though legal measure, according to a study.
The study, conducted by Bangladesh Institute of Bank Management (BIBM), also said an effective department could help in reducing business cost with international corresponding banks as well as documentation lapses of the bank.
Findings of the study were disclosed at a research workshop on Internal Audit and Performance of Banks in Bangladesh on Thursday.
The workshop was held at the BIBM in the capital with its Director General (DG) Dr. Toufic Ahmed Chowdhury in the chair.
The study also found that Internal Control and Compliance Department (ICCD) is the most desired workplace for only 19 per cent bank executives.
On the other hand, about 40 per cent of them are not willing at all to be posted in the ICCD, it added.
Three units - audit, monitoring and compliance - of the ICCD have been considered to be integral parts of effective internal audit operations.
"An independent IA may be considered the third-eye and most dependable counsellor of board of directors and regulators," Abu Hena Mohd. Razee Hassan, deputy governor of the Bangladesh Bank (BB) said.
He was the chief guest at the workshop.
He also said, "It's the joint and harmonious effort of BB, and commercial banks that would best serve the purpose of developing a system based on disciplined inclusive banking sector in our country."
Among others, Supernumerary Professors of BIBM Helal Ahmed Chowdhury and Muhammad Yasin Ali spoke at the workshop.
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