Integrated Supervision System

1. Presentation
on
ISS Reporting Management
For
Branch Managers

2. What is Integrated Supervision
System (ISS)?
Integrated Supervision System (ISS) is a
web based monitoring tool which will
integrate the existing multifold
supervision mechanism of Bangladesh
Bank.

3. Why ISS is important for
commercial banks?
 To comply obligatory self examination.
 To ensure effectiveness of MIS.
 To improve remote communication.
 To minimize the oversight gap.
 To enhance the effectiveness of
internal control.

4. Continued…….
Not only Central Bank but also
scheduled banks can use it themselves
for monitoring and supervision of their
branch offices. A number of banks have
already started to use their ISS data for
decision making and branch
supervision.

5. ISS : Synchronization with Inclusive
Supervision Model
To ensure effective and risk based
supervision Integrated Supervision
System(ISS) has emphasized on
inclusive supervision model which is
consists of 5-layers :

6. 5-Layer Inclusive Supervision
Model
Intl. Bodies
National
Level
Bangladesh
Bank
Head Office of Banks
Branch Managers

7. Manager’s Dual Role
 Traditionally, Branch managers are
supposed to play the role of operational
head of branches. But, ISS would like to
consider them managers as well as
supervisors. Because, every branch is a
profit generating warehouse on one hand
and risk generating womb on the other
hand.
 A manager-cum-first layer supervisor
may play a vital role for sound operation of
his/her branch in a way that his/her dual
role will ensure risk-managed and profit-
oriented banking sector in our country.

8. ISS Inauguration and update:
 Formal Inauguration on 08/10/2013 with
a theme of central bank supervision from
a different look to help ensuring stable
banking sector in a changed and
augmented economic scenario.
 ISS Circular had been issued on 24
February, 2014 covering reporting of
Head office and authorized dealer (AD)
branches.
 From May, 2015 onwards all branches
(AD and Non-AD) have been instructed

9. ISS Reporting Responsibility
Immediately after issuing circular, reporting
responsibilities of branch managers and
MD/CEOs had been clearly defined through
the letter of password distribution as follows:
"It is to be mentioned that custodian of User
ID and password at head office level will be
CEO/CFO/ICC/MIS Head and for Branch
Office, custodian of User ID and password will
be the Branch Manager/In-charge.
Furthermore, the CEO and Branch
Manager/In-charge shall be solely responsible
in case of late or incorrect data submission."

10. Data accuracy
 To make banks' ISS data more accurate
Bangladesh Bank has established monthly
data certification system for all banks.
 ISS does not want to create any panic for
bankers rather it would like to make their
job more safe and secure with the ultimate
goal of knowledge and risk-based banking
in place of profit sucking banking.
 Unfortunately, ISS seems to be a panic for
some banks as well as bankers for the lack
of sincerity and seriousness on their part to
manage the said reporting.

11. ISS Reporting management at Branch
 Awareness about ISS Related Circular from
BB and own Bank
 Preparation of ISS Job List and Organogram
 Issue Office Order to distribute ISS Job
 In-house Training(if required)
 Data(Reported RIT) Preservation
 Documentation of supporting documents
with proper authorization
 Verification of data before uploading to BB
portal
 Fall back plan and person

12. Some silly Mistakes
In most of the cases, reasons for
inaccurate data are very silly, viz, typing
error, reporting figure of an item against
other item, misplacing of decimal, input
figure in lac or crore, etc.
All of these errors are the symptom of lack
of sincerity and seriousness of reporting
officers (on operational part) and
concerned branch managers (for their
supervision deficiency) about the accurate
reporting.

13. Accurate Data Submission
Matrix
Manager’s Supervision Coverage
Desk
Officer’s
Awarenes
s
(Partial, Partial)
Outcome: Very low
quality data
(Full, Partial)
Outcome: Probability
of erroneous data is
high
(Partial, Full)
Outcome:
Probability of
erroneous data is
(Full, Full)
Outcome: 100% data
accuracy

14. ISS awareness for
Managers
 At present, at least fourteen month time series for
each reporting item has been generated at every
branch enriched with their reporting data.
 Managers should be well aware of those series
which will help them :
a)Asses the performance of their branches,
b)Evaluate the quality of assets,
c)Enhance the efficiency of the loan/investment
portfolio management and
d)Mitigate the branch's various risks.
 All of these would effectively convert a manager to
a supervisor.

15. Last but not the least
 Bangladesh Bank does never think of penalize
the bankers for their mistakes in reports.
 The expectation of Bangladesh Bank from
bankers is very simple and that is, genuine and
authentic data.
 You, the managers-cum-first layer supervisors
are the firewall for the protection of erroneous
data.
 You hold the stake of ensuring accurate data
submission to the central bank and it is a part of

16. Last but not the least…….
Understand Reporting ;
Own your Data ; and
Enjoy your Job.
Thanks.