July 2, 2022
  • July 2, 2022

Ex-officials prevented from becoming bank manager

By on May 16, 2021 0

No former contractual or permanent manager of a programmed bank would be allowed to serve as a director in the bank, according to a directive from the Bangladesh Bank.

The central bank issued the directive as several former bank employees hold directorships at banks they previously served, a senior BB official said.

The official said the BB issued a circular in this regard on May 12 to prevent employees from unfairly supporting bank managers in the hope of being rewarded with the manager position after their terms expire. in banks.

The central bank will now check whether such a director is present on the boards of banks or not,” he said, adding that the BB would take action if it finds such a director on the boards of banks. administration of banks.

“Contractual or permanent employees of banks would never be eligible to occupy a position of administrator in a bank after their retirement, their termination or the end of their contract with the same bank”, indicates circular BB.

The central bank also extended the length of the service interval that would ensure that a director, CEO or CEO or employees rank immediately next to the CEO position eligible for appointment as an adviser or consultant of the same bank after the expiration of their service.

To be appointed advisor or consultant of a bank where the director, general manager or chief executive officer or the two-row employees immediately next to the post of CEO were employed, the term of office was set at five years in under the new Central Bank directive.

Under the previous BB circular issued on October 27 of 2013, the length of the service gap to be eligible as an advisor or consultant was only one year.

The central bank in its circular of May 12 also repealed the circular published on October 27, 2013.

Compliance with the spirit of Article 15 (9) of the Banking Companies Act 1991 by ensuring neutrality, professional quality and corporate governance in the operations and management of banks was mentioned as the because of the imposition of the embargo.

The section of the Bank Company Act, 1991 prohibits natural persons with an interest in the past, present or future in a bank would not be considered eligible to be appointed independent director of the same bank.

In accordance with this article, banks cannot appoint any of its former directors, managing directors or any other permanent or contractual employees as independent directors on their board.