Financial reporting by listed banks in Bangladesh continues to carry systemic risk as regulatory waivers let lenders avoid full compliance with globally accepted accounting standards. A review of recent financial statements found that many banks received "Emphasis of Matter" (EOM) notes instead of qualified audit opinions despite serious financial mismatches.
An anonymous auditor said EOMs are being used to bypass the accountability that comes with qualified opinions even though such opinions are meant to be issued when there are material misstatements or departures from accounting rules. Unlike a qualified opinion an EOM only flags an issue without assessing its financial impact leaving investors unable to judge the real risk.
Since IFRS9 was introduced by the central bank in late 2024 banks have been required to receive qualified opinions for any deviation. Yet waivers such as provision deferrals also have allowed banks to stay technically compliant on paper.
Central bank spokesperson Arief Hossain Khan acknowledged that adhering to IFRS9 is necessary for global competitiveness but said some waivers were needed to help struggling banks survive. In April, Bangladesh Bank allowed Al-Arafah Islami Bank to defer Tk.53.93 billion in provisions, sparing it from a qualified opinion despite asset-quality concerns. Other banks including Standard Bank and Premier Bank have also seen deteriorating asset quality and capital shortfalls.
By contrast the BRAC Bank disclosed the reasons for its own deviations in its 2025 statements. A senior bank official said this was done to reassure foreign clients despite following central bank circulars that diverge from IFRS9.
Experts warn of a broader departure from forward-looking impairment models. Sk. Ashik Iqbal of Deloitte Bangladesh said audits are a key defense in financial reporting and stressed that Bangladesh must fully adopt IFRS9 to move forward.
