As the banking industry continues to evolve and embrace technology, cloud computing has emerged as a powerful tool for businesses to store, manage and process data and applications. However, cloud computing also presents a range of challenges, particularly around security, data privacy, and regulatory compliance. To help the banking sector in Bangladesh navigate these challenges, the Bangladesh Bank has released comprehensive guidelines for cloud computing.
The Bangladesh Bank Guideline for Cloud Computing provides detailed guidance for banks in Bangladesh looking to adopt cloud computing. The guideline starts by providing an overview of cloud computing, including its various deployment models such as public, private, and hybrid clouds.
One of the key recommendations of the guideline is that banks should conduct a thorough risk assessment before deploying a cloud solution. This assessment should include an evaluation of the cloud service provider’s infrastructure and security measures, including physical security, network security, host security, and application security.
The guideline recommends that banks use reputable cloud service providers that have a proven track record of providing secure and compliant cloud services. Banks should ensure that the cloud service provider is compliant with regulatory guidelines issued by Bangladesh Bank and other regulatory bodies.
To ensure the security of data and applications in a cloud environment, the guideline recommends that banks implement access controls to ensure that only authorized personnel and designated owners can access sensitive data. Banks should also ensure that their data is encrypted, both when in transit and at rest, and that backup data is stored in a secure location. Banks need to ensure that CSP has no rights or licenses to use data.
The guideline also recommends that banks implement disaster recovery and business continuity plans to ensure that their operations can continue in the event of a disaster or other disruption. Banks should conduct regular tests of their disaster recovery and business continuity plans to ensure that they are effective and up-to-date.
The guideline also emphasizes the importance of governance when it comes to cloud computing. Banks should develop a governance framework for cloud computing that includes policies and procedures for managing cloud services. This framework should also include training for staff on how to use cloud services securely and compliantly.
In addition to the above, the guideline provides specific recommendations for different types of cloud deployments. For example, for private cloud deployments, banks should ensure that their private cloud infrastructure is located within Bangladesh, owned, managed and operated by the Organization itself. Banks should also ensure that their private cloud infrastructure is compliant with regulatory guidelines issued by Bangladesh Bank and other regulatory bodies.
For hybrid cloud deployments, the guideline recommends that banks ensure data classification and sensitivity, customers’ financial and other sensitive data cannot be hosted in cross-border hybrid cloud, and any exception will be subject to prior approval of Bangladesh Bank. Banks should consider using cloud management tools to manage both private and public cloud resources.
For public cloud deployments, the guideline recommends that banks ensure data classification before hosting in public cloud. Similar to hybrid cloud, hosting customers’ sensitive will require exception approval from Bangladesh Bank. The cloud service provider is compliant with regulatory guidelines issued by Bangladesh Bank and other regulatory bodies. Banks should also ensure complete visibility and monitoring over resources and systems. Data needs to be encrypted, backed up regularly, and access is granted only to authorized personnel.
The Bangladesh Bank Guideline for Cloud Computing provides valuable guidance for banks in Bangladesh looking to adopt cloud computing in a secure and compliant manner. By following the recommendations in the guideline, banks can take advantage of the benefits of cloud computing while ensuring the security and privacy of their data and complying with regulatory requirements.
| Business Objective | Bangladesh Bank Guideline for Cloud Computing |
|---|---|
| Reduce IT Infrastructure Costs | Migrate on-premise systems to the cloud to reduce capital expenditures, as per Section 3.1 of the Bangladesh Bank guideline. Use cloud-native services such as serverless computing and autoscaling to optimize operational costs, as per Section 3.2 of the guideline. Implement cloud security services such as encryption, network security, and access controls to secure data and comply with Section 4.4 of the guideline. |
| Improve Operational Efficiency | Utilize cloud computing services for automating and streamlining workflows, and integrating with cloud-based third-party services, as per Section 3.3 of the Bangladesh Bank guideline. Implement containerization and microservices architecture to achieve faster deployment of new products and services, while following the guideline for data security and privacy outlined in Section 4.4. |
| Enhance Business Agility | Adopt cloud computing services for scalable and flexible resources, as per Section 3.2 of the guideline, and implement cloud monitoring services for better insights and control, as per Section 3.4. Utilize cloud data analytics and machine learning services to improve responsiveness to changing market demands, while ensuring compliance with the Bangladesh Bank guideline for cloud computing. |
| Ensure Data Security and Privacy | Implement cloud data encryption, access controls, network security, and monitoring to protect sensitive data, as per Section 4.4 of the Bangladesh Bank guideline. Ensure that all data is stored in servers located within Bangladesh, as per Section 4.1, to comply with local laws and regulations. Also, implement data backup and recovery, disaster recovery, and incident response plans as per Section 4.5 of the guideline. |
| Maintain Regulatory Compliance | Ensure all cloud computing services and providers comply with relevant laws and regulations, as per Section 4.6 of the Bangladesh Bank guideline. Implement cloud compliance and audit services to ensure that data stored in the cloud is subject to the same regulatory framework as other financial data, as per Section 4.7 of the guideline. |
