All dissents, observations must be recorded in board-meeting minutes

Regulations for bank shareholders and operations are tightened with latest regulatory instructions that the commercial banks ought to clearly mention all opinions expressed by the board members in the minutes of board and supporting-committee meetings.

Also, in a couple of fresh government policies, lobbying for promotion of bankers and employees of financial institutions has been declared "profession misconduct".

The Bangladesh Bank issued the banking directives Monday, stating that the measures are directed towards improving discipline, transparency in banking and financial operations.

In a circular issued on the day, the central bank said the directive, which takes effect "immediately", aims to ensure transparency and accountability in the operations of bank boards and their supporting committees.

The banking regulator said that many banks fail to properly document 'Notes of Dissent' in meeting minutes, and in some cases, discussions on agendas and the opinions of board members are not accurately reflected.

To ensure the compliance, the BB circular states that any differing opinion, observation, or dissent expressed by the directors on agenda items during board or committee meetings must be clearly included in the meeting minutes.

"If any director submits a 'note of dissent,' it must be fully recorded in the minutes," says the notice, adding that if any observer from Bangladesh Bank is present during the meeting, their observations must also be documented.

It also notes that other instructions from the previous circular will remain unchanged.

Requesting anonymity, a BB official said the directive is expected to promote discipline and transparency in the activities of the board members.

"We often hear complaints that loan proposals were approved by the board despite note of dissent by some. With the latest instructions, we'll be able to track everyone's opinions during board or committee meetings," the official adds.

In policy updates circulated Monday, the government said it will consider any kind of lobbying by the bankers for their promotion as professional misconduct.

The warning was given as the government unveiled two separate policies for the promotion of employees of state-owned commercial banks and specialised banks and financial institutions.

This is the first time the government has included such a clause in the promotion policy for the employees in banks and financial institutions.

One policy was issued for the employees at six state-owned commercial banks. The other one was issued for six specialised banks and two financial institutions.

The promotion policy 2025 will be applicable to Deputy General Manager (DGM), Assistant General Manager (AGM), Senior Principal Officer (SPO), Principal Officer (PO), and senior officers of banks and financial institutions.

The policy says the educational qualifications, satisfactory service record, merit, efficiency, training, integrity and seniority of the candidates will be taken into consideration for promotion. "Those who don't pose bachelor's degree would not be eligible for promotion."

Also, it mentions that "candidates having adverse comments in the Annual Confidential Report (ACR) and those who are convicted in departmental case or convicted in a criminal case, or a criminal case is pending against someone, would not be considered for promotion".

syful-islam@outlook.com