Bank’s MD to face BB’s eligibility criteria

Kamruzzaman Bablu :
From now on, managing directors’s (MDs) of commercial banks have to face the new eligibility criteria of the Bangladesh Bank (BB) to ensure the transparency of their appointments.
Regarding the issue, the central bank on Sunday has already formed a four-member committee to verify the eligibility of the bank’s nominee as the Managing Director (MD) through the ‘Evaluation Committee on Appointment/Re-appointment of Managing Director or Chief Executive Officer’, said an insider.
The ‘Banking Regulations and Policy Department of Bangladesh Bank’ said its notification that even if the managing directors and chief executive officers of the bank wish to leave the bank’s managing directors post by their own will or under the pressure of the bank’s board, the Bangladesh Bank’s approval will be required.
Not only that, before appointing a managing director, his or her educational qualifications and work experience should be sent to the central bank.
Besides, a committee of Bangladesh Bank will interview the nominated person, and Bangladesh
The bank will approve the appointment of managing directors based on that committee recommendation. A four-member committee headed by a deputy governor of the central bank has been formed to verify the qualifications, suitability, experience, age, and leadership qualities of the person nominated as the bank’s managing director, according to the circular.
The ‘MD Appointment Evaluation Committee’ will be chaired by the Deputy Governor (in charge of Banking Regulations and Policy Department), and the rest of the three members, including the Executive Director (in charge of Banking Regulations and Policy Division), Executive Director (in charge of Offsite Supervision Department), and Director (Banking Regulations and Policy Division, Division-II), will also have.
The Managing Director and Chief Executive Officer’s appointment term will generally be three years. But he will be eligible for re-appointment. In the case of re-appointment, if the age of the candidate is less than 3 years after passing 65 years, he can be appointed for that period as well. But the Bangladesh Bank will appoint the candidate after interviewing him or her for the period for which he or she is recommended. Earlier, on February 27, the Bangladesh Bank said that the permission of the central bank would require the removal of the managing director.
No managing director can be removed from his post, and a contract cannot be terminated before its expiration unless there was gross misconduct or deviance. If any banks want to cancel or remove the contract, they should send it to the central bank with a specific reason. If the Bangladesh Bank approves such a proposal, it will be effective after one month. Similarly, the managing director will remain in his post for the remainder of the term if the Bangladesh Bank does not accept the claim, and if someone wants to resign before the end of his term, it should be sent to the Bangladesh Bank with the board of directors’ recommendation that the decision given by the Bangladesh Bank after hearing will be effective.