Appointing CEOs for FIs comes under regulation

Central bank issues guidelines to 'protect' depositors

| Updated: June 21, 2022 17:06:34

Bangladesh Bank - File Photo Bangladesh Bank - File Photo

Appointment of chief executive officer (CEO) for financial institutions comes under strict regulation to ensure good governance alongside protecting depositors' interests, says an announcement, against the backdrop of big scams.

Bangladesh Bank issued a set of policy guidelines to this effect, which states that minimum 20 years of working experience in banks or financial institutions (FIs), including two years as CEO or immediate previous post in any commercial bank or financial institution, will be prerequisites for a person's appointment or posting as CEO.

Officials holding the post of general manager and above in state-owned commercial banks or holding positions of senior executive vice-president (SEVP) or above in private commercial banks or officials having minimum 5 years of experience as branch manager will also qualify for the post of CEO.

The central bank, in its circular issued Monday, also stated that authorities of the financial institutions will have to publish job requirement in minimum two English and two Bangla dailies alongside their own websites for ensuring competition among the eligible candidates.

"Board of directors of the respective institution must have an evaluation process on appointment of the most qualified candidate through transparent evaluation of the applications," it says.

An individual who was suspended while serving as chairman, director or officer in any financial institution will not be eligible for the position of CEO.

The circular also mentions that director of a bank or financial institution and person who has business interests in that particular financial institution or bank will not be eligible for the position.

"The CEO must have minimum post-graduation degree and higher degree in economics, banking, finance and business administration will be treated as additional qualification," according to the circular.

The latest measure comes from the regulator evidently against the backdrop of numerous acts of fraudulence in this sector, like embezzlements and siphoning off money.

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