BB’s new initiative to appoint MDs of NBFIs
Kamruzzaman Bablu :
For a long time, almost a dozen of non-banking financial institutions (NBFI) has been running without any Managing Director (MD) or Chief Executive Officers (CEO).
To ensuring transparency and accountability of this sector, the Bangladesh Bank has taken a new initiative.
The central bank has formed a panel to appoint MDs in these financial institutions, said insiders.
According to Bangladesh Bank sources, these institutions who failed to appoint Managing Directors for a long time, from now can appoint MDs of their choice from this panel.
Besides, these institutions will also be to appoint independent directors from this panel.
The central bank has already written letter to some commercial banks to search for retired officers and experienced bankers.
Sources said that several institutions have been running without Managing Directors for the last one to two years.
Some organizations were running without this top post for several months.
These are running by Additional Managing Directors (AMDs), Deputy Managing Directors (DMDs) and other senior officers who are serving as Acting MD or CEO.
Seeking anonymity, a Bangladesh Bank official said that the central bank has started work to formatting a panel by retired bank officers and experienced bankers.
Regarding this the central bank already has sent a letter to 7-8 state owned and private banks to send the list of their retired officers for formatting panels including Sonali Bank, Rupali Bank, Agrani Bank, Janata Bank, Uttara Bank and Pubali Bank.
Those banks are asked to send the list of retired General Manager (GM) to Senior Officers, who are maximum 65 years old.
The banks also asked to send the list of qualified, clean image and transparent in career. Already two banks have sent the name of a 30 to 35 retired officers list.
It was alleged that some companies cancel their Managing Directors if they (MD) do not perform as per the board’s desire.
On the other hand, despite getting qualified Managing Directors, some institutions do not appoint them due to appoint their own people.
Almost a dozens of non-banking financial institutions (NBFI) have been running without any Managing Director (MD) or Chief Executive Officers (CEO).
They are; Union Capital, Fars Finance, Bangladesh Industrial Finance Company (BIFS), The United Arab Emirates-Bangladesh Investment Company Limited, GSP Finance Company (Bangladesh), Aviva Finance, Bay Leasing, First Finance, Phoenix Finance, SFIL, IPDC Finance and Agrani SME Finance.
“Some financial institutions have failed to appoint Managing Directors and they are running without MD for a long time.
So the central bank takes initiative to make panel which is already done.
If any organization does not get MD, they can hire MD from this panel.
We have already received some CVs from experienced bankers, who have expressed their interest in leading these institutions as MDs,” Md Mezbaul Haque, Executive Director and spokesperson of the Bangladesh Bank told The New Nation.
