Promoting operational efficiency through internal control in Meghna Bank

Abstract

Meghna Bank PLC (MGBL) is one of the fastest growing 4th generation digitalized banks in the country. There is no denying that corporate operations are altering as a result of digital transformation. Organizations have the ability to reinvent how they conduct business and interact with their consumers as they go from using traditional paper and spreadsheets to smart applications to manage their operations. To ensure customer satisfaction, its professionalism, its efficiency and corporate governance, the “Internal Control & Compliance Division (ICCD)” of the bank plays the vital role. It is immense responsibility for the ICCD to guide and monitor a massive portfolio. Therefore, this report contains case study on 03 operational issues with problem identification, reasons and recommendations. In recent years MGBL is transforming digitally and converted to a centralized bank in terms of banking operations. Still there are some areas where centralization is yet to happen. Meanwhile the Business Operations team is implementing and designing Standard Operating Procedures aligned with Bangladesh Bank’s guideline. During this transformation, Business Operations and ICCD teamed up to identify challenges and bring solutions to overcome process loopholes and setting control points. The Internal Control Department has been reorganized to place more of an emphasis on Internal Control Mechanism and Regulatory Issues. The primary goal of this internal control function is to balance risk and return for the bank; no risk should be unidentified or illogical. The purpose of internal auditing is to offer value and enhance an organization's operations. It is an impartial, unbiased assurance and consulting activity. By applying a structured, methodical approach to assessing and enhancing the efficacy of risk management, control, and governance procedures, it aids a company in achieving its goals. Risk is the possibility of losing something valuable while also having a chance to earn something valuable. Finally, based on the study and working experience in MGBL some findings along with the analysis are given. The analysis is in brief and simple so that it can be easily understand. At last some clear recommendations are given based on the findings of the study related to Regulatory Requirements, Risk of Fraud due to process lapses, Increasing Operational Efficiency through establishing compliance culture, Developing SOPs, Identifying Process Lapses and the overall analysis on the ICCD of MGBL.

According to the study's findings, ICCD does a job of minimizing risks through complying with relevant rules and regulations of banking services by regulatory bodies.