, Jan. 4 -- Bangladesh Bank has launched a new Risk-Based Supervision (RBS) framework, marking a major shift in how the country's banking and financial institutions are monitored as authorities seek to restore confidence among depositors after years of sectoral stress.

The central bank on Sunday formally moved away from a traditional, compliance-driven oversight model to a system that prioritises supervision based on the specific risk profiles of individual institutions.

Officials say the new approach will allow regulators to identify financial vulnerabilities earlier and respond more decisively.

Under the RBS regime, Bangladesh Bank will abandon a "one-size-fits-all" model of supervision. Instead, banks and financial institutions will...