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The Financial Express

Central bank wants chairmen, MDs of banks ensure good governance

| Updated: January 25, 2021 12:42:07


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Central bank wants chairmen, MDs of banks ensure good governance

The central bank has extended the date of submitting statement on relations with family and other types of businesses by the directors and top executives to their boards of directors by February 28.

The Bangladesh Bank (BB), at the same time, issued a notice on Thursday, asking chairmen and MDs of all banks to comply with relevant sections on the Banking Companies Act, 1991.

"We've issued the notice aiming to ensure good governance in the country's banking sector," Abu Farah Md. Naser, executive director of the BB, told the FE while explaining the main objective of the directive.

He further said it will also help ensure discipline in the banking system.

The directors, MDs and the officials' immediate two tiers below of the MD have been asked to submit details of their relations with family business along with commercial, financial, agricultural, industrial and other businesses to the board concerned, according to the notice released by the central bank on Friday.

The deadline for submission of such statements has been fixed on January 20 each calendar year.

But, for the year ended on December 31, 2020, the submission date of statements was set on February 28, it added.

"The submitted statements will have to be placed at the next board of directors' meeting and preservation of the statements will have to be ensured," the BB said in the notification.

Talking to the FE, Syed Mahbubur Rahman, former chairman of the Association of Bankers, Bangladesh (ABB), said it is not a fresh move of the central bank.

"Actually, it is a reinforcement of what has been there before. But it will help ensure good governance in the banking sector," Mr. Rahman, also MD and chief executive officer of Mutual Trust Bank Limited, noted.

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