Bangladesh Bank revises criteria for bank MD, CEO appointments

Bangladesh Bank has revised the requirements for appointing managing directors (MDs) and chief executive officers (CEOs) of bank companies.

The central bank’s Banking Regulation and Policy Department (BRPD) announced the revision in a circular on Wednesday. 

The circular amends Section 2(গ)(10) of BRPD Circular No. 05, which was issued on February 27, 2024 and set out the basic eligibility conditions for CEO appointments.

A candidate from the banking profession must now have at least 20 years of experience as an active officer in the banking sector, the BB said. 

The candidate must also have a minimum of three years’ experience, singly or jointly, as deputy managing director (DMD) and/or additional managing director (AMD) of a bank, it said.

Previously, the requirement was 20 years of banking experience plus at least two years in the position immediately below that of CEO, the cenbank noted. 

Bangladesh Bank argued that it changed the criteria to ensure greater uniformity and similarity in prior experience requirements for managing director appointments across bank companies.

At the same time, the central bank circular clearly spells out an alternative route for senior officials from regulatory bodies in the banking and financial sector to head bank companies.

A candidate may also qualify with at least 25 years in first-class or equivalent senior posts at a regulator, along with serving as a Grade 2 officer under the national pay scale, it said.

All other instructions contained in BRPD Circular No. 05, dated February 27, 2024, will remain unchanged, the central bank clarified.