Skip to main content Prompt Corrective Action Framework: a bold move MD TOUHIDUL ALAM KHAN In a groundbreaking move, the Bangladesh Bank introduced the prompt corrective action (PCA) framework on December 5. This new set of rules aims to ensure stability in our commercial banks, bolstering confidence in the financial system. The PCA framework categorises banks into four groups, from Category-1 to Category-4, each with specific actions stipulated. For instance, banks in Category-1 might need to activate recovery plans, conserve capital, and limit growth in certain areas. Higher categories bring additional measures. It's like having a strategy paper for different scenarios, helping banks stay in good financial shape. The PCA framework's provisions will come into effect on March 31, 2025, based on the annual audited financial statements for the period ending on December 31, 2024. The bright side One shining merit is the focus on early detection and intervention....
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