International Consulting Services for Asset Quality Review (AQR) in the banks

Bangladesh Bank (Central Bank of Bangladesh) Head Office, Motijheel, Dhaka-1000 Financial Sector Support and Strategic Planning Department (FSSSPD)

Request for Expressions of Interest (REoI) for International Consulting Firms (Service Provider) for Asset Quality Review (AQR) in Banks

Reference No.: S-1_PPA_FSSP-II Date: 03 August, 2026

Background

Bangladesh Bank (BB), the central bank of Bangladesh, plays a pivotal role in maintaining financial stability, safeguarding depositors’ interests, and strengthening the soundness of the banking sector. As the financial system grows in size and complexity, concerns have emerged regarding credit quality, loan classification, provisioning adequacy, capital adequacy, and overall risk management practices in banks.

To address these systemic vulnerabilities and reinforce prudential oversight, BB intends to undertake a comprehensive Asset Quality Review (AQR) of selected banks under the Project Preparation Advance (PPA) of the proposed Financial Sector Support Project-II (FSSP-II) , supported by the World Bank.

BB seeks to engage an international consulting/audit firm with proven expertise in AQRs, diagnostics of banks, and credit risk assessments to carry out this assignment.

Functions and Responsibilities

The assessment will comprise two stages:

First Stage: Assessment of asset quality, adequacy of Regulatory and Tier 1 capital against international and local standards and a comprehensive evaluation of banks’ credit risk management procedures, processes, and practices.

Second Stage: Assessment of Regulatory and Tier 1 capital adequacy in a 3-year horizon and according to baseline and adverse macroeconomic scenarios.

The assessment will be based on fair, prudent, and realistic assumptions consistently applied to all banks.

(i) Compliance and Diagnostic Assessment Review compliance with BB’s prudential regulations on asset classification, provisioning, large exposures, related-party identification, foreign currency exposures, and credit underwriting. Assess accounting policies, credit risk management practices, internal controls, and underwriting quality. Review liquidity management, investment policies, and FX exposure frameworks.

(ii) Asset Quality Review (AQR) Conduct an asset quality review covering at least 80% of the total assets of the respective bank. Perform data integrity verification (DIV) of bank-provided datasets. Apply segmentation, sampling, and extrapolation for loan portfolios, securities, fixed assets, and off-balance sheet exposures. Conduct collateral valuation reviews, including independent reappraisals where required. Identify willful defaulters, related-party transactions, and connected lending as per regulations.

(iii) FX Exposure Review Assess the adequacy and accuracy of net open positions, valuation of FX exposures, and regulatory reporting.

(iv) Capital Adequacy Assessment Assess Regulatory Capital and Tier 1 capital adequacy based on adjusted asset classifications and provisioning levels. Evaluate capital adequacy under baseline and adverse macroeconomic scenarios.

(v) Liquidity Review Assess different liquidity ratios like liquidity coverage ratio, net stable