BB restricts hurried changes in banks’ top management:Daily Sun

 Bangladesh Bank (BB) has made it mandatory for all scheduled banks to follow a one-month procedure for finalising the appointment, removal or resignation of chief executive officer and/or managing director at their respective institutions. The central bank has issued a directive to the banks in this regard on Tuesday, seeking immediate compliance. By this latest measure, the central bank restrict
ed hurried appointment by the board of directors or quitting job by CEO and/or MD at the schedule banks. From now onward, a CEO and/or MD of a bank must submit resignation letter to the bank’s board by giving at least a one-month notice. At the same time, copy of such letter shall be sent to the BB authority for approval. Similarly, the head of board of directors of a bank shall inform the central bank’s designated department in written about appointment or removal of CEO and/or MD. Concerned CEO and/or MD will also get a one-month notice period by the bank board before removal, the BB directive reads. In case of vacancy of CEO and/or MD post, the BB directives noted that the board of directors could pick-up the immediate next senior official to lead the bank to continue financial operation as ‘acting charge’ for a maximum period of three months. According to Banking Company Act 1991 (Amended 2013), the BB will give the final approval to appointment of a CEO and/or MD of a bank following proposal from the bank concerned. The BB also has been empowered by the banking company act to issue a set of criterions for such appointment and eligibility status of the prospective candidates. The key eligibilities of a prospective candidate are that the person should be free from any sort of loan defaulting, fund embezzlement and criminal offense. The BB is empowered by the act to impose new set of criterion and their amendment anytime on justifiable grounds.