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BB issues new rules on hiring CFO, CITO for banks

Directive on CRO, co secretary likely


FE Report | Published: March 26, 2018 10:00:07 | Updated: March 29, 2018 09:31:54


The central bank has introduced a new set of regulations on appointment of chief financial officer (CFO) and chief information technology officer (CITO) of the banks to ensure good governance in the banking system.

Under the new regulations, minimum 12 years of working experience in banks or financial institutions (FIs), including three years in banking accounting and taxation, will be required for a person's appointment of or posting to the post of CFO.

On the other hand, minimum 12 years of working experience in information technology, of which five years experience in banks and FIs, will be needed for appointment of or posting to the post of CITO.

The central bank issued a circular in this connection on Sunday and instructed the managing directors (MDs) and chief executive officers (CEOs) of the banks to follow the new set of regulations on appointment of CFO and CITO.

The banks have been asked to comply with the new regulations by December 31, 2018, if any deviation is found in educational qualification and experience of their existing CFOs and CITOs, according to the circular.

"We've introduced the regulations in line with the recommendations of Basel Committee on Bank Supervision in order to minimise risks in the country's banking system," a senior official of the Bangladesh Bank (BB) told the FE.

The hiring of chief risk officer (CRO) and company secretary of the banks may also come under such regulations in future on the same ground, the central banker hinted.

BB earlier introduced a set of regulations on appointment of the banks' directors, MDs and CEOs, advisors and consultants to ensure good governance in the banking system.

siddique.islam@gmail.com

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