BB forms body to appoint qualified MD, CEO of banks

Bangladesh Bank (BB) has formed a committee on appointment and reappointment to the post of managing director (MD) or chief executive officer (CEO) of banks, in consideration of good governance in the banking operation.

The Banking Regulations and Policy Department (BRPD) of the central bank on Sunday issued a circular in this regard on Sunday and sent it to the chairman and the board of directors of all scheduled banks other than specialised banks, for immediate execution.

The circular stated that the BB has the power to approve an appointment or re-appointment to the post of MD and CEO of banks.

The initiatives have been taken to ensure better governance in bank management, protect the interests of depositors, and bring back credit discipline by removing existing barriers, according to the purpose of the circular.

Immediately, the person nominated by the central bank should be nominated as MD or CEO in pursuance of the circular.

To verify his/her qualifications, suitability, commitment to responsibility, experience, age, and leadership qualities, the central bank formed a committee consisting of four members for interviewing.

The committee members are chairman-deputy governor (in charge of BRPD), member-executive director (In charge of BRPD), executive director (Department in Charge of Offsite Supervision), director (BRPD, Division-II) member, and member secretary.