President to appoint BB Governor, tenure to be increased Draft Ordinance
Business Report :
A draft of the Bangladesh Bank Ordinance (Amendment) has been prepared, bringing major changes to the Bangladesh Bank Order 1972, including a proposal for the governor’s appointment by the President and an extension of the tenure which considered being a landmark move to strengthen central bank independence.
A senior official of the central bank, seeking anonymity, said the draft aims to enhance the autonomy of Bangladesh Bank by altering the process of appointing the governor and revising the tenure, media reports.
As per the Bangladesh Bank Order 1972, the government currently holds the authority to appoint the governor and one or more deputy governors.
The proposed amendment seeks to vest this power in the President.
According to the proposed ordinance, the president will constitute a six-member search committee to recommend candidates qualified under this ordinance for appointment as governor or deputy governors.
The committee will include: a former finance minister nominated by the president (chairperson); a former governor of the Bangladesh Bank nominated by the president; if unavailable, a former deputy governor; the comptroller and auditor general of Bangladesh; the chairperson of the Bangladesh Public Service Commission; two eminent citizens, nominated by the president, with expertise in economics, banking, or finance – at least one of whom must be a woman.
The governor, deputy governors, or non-executive directors may not be removed from office except by the Supreme Judicial Council, in accordance with the Council’s procedures, and only on the grounds that they have become disqualified from continuing to hold office or have been found guilty of gross misconduct.
The official said until now, the prime minister could appoint the governor without the president’s consent or advice.
Under the draft, the President would appoint the governor in consultation with the prime minister. Parliamentary consent for the appointment has also been proposed.
Other proposed changes include revising the oath-taking process and upgrading the rank of the governor and deputy governors. Under the 1972 law, the governor’s current tenure is four years. The draft proposes extending it to six years.
Speaking at a recent programme on amending the banking law, Bangladesh Bank Governor Ahsan H Mansur told the media that major reforms are being brought to strengthen the central bank’s authority and ensure its autonomy by freeing it from political influence.
Bangladesh Bank spokesperson Areif Hossain Khan also informed the media that the draft ordinance has been prepared.
“Which proposals will be incorporated in the final version will be known only after the ordinance is issued,” he expressed.
