Bangladesh Bank sets qualifications of independent directors for NBFIs

Bangladesh Bank has specified the qualification of independent directors for non-banking financial institutions (NBFI) in order to ensure good governance in the financial institutes.

The central bank in a directive said that a maximum of 15 directors, including two independent directors, can be appointed for an NBFI in the country, UNB reports.

The independent directors should have a bachelor's degree with a minimum of 10 years of professional experience, a minimum age of 45 years, and a maximum age of 75 years.

“Monthly salary will be a maximum of Tk 50,000, depending on ability. No person who has an interest or apparent interest in any financial institution can be eligible for an independent director,” said the directives.

The Financial Institutions and Markets Department of the central bank issued guidelines on the experience and suitability of independent directors. The new directives will come into effect immediately.

The central bank said the independent directors must be from the faculty of business education of public/ autonomous/ private universities, or experienced teachers in business administration, management, law, and information technology, persons engaged in the legal profession.

Besides, individuals with professional degrees in accounting, engaged in the accounting profession, experienced bankers, Ministry of Commerce, experienced officers of the Financial Institutions Division, Finance Division, Ministry of Industry, and Ministry of Law can be considered on a priority basis.