Govt changes appointment process for state-owned bank MDs

The government has changed the appointment process for managing directors (MDs) or chief executive officers (CEOs) of six state-owned commercial banks, ending its direct appointment authority over the posts.

The Financial Institutions Division of the Ministry of Finance recently issued a policy outlining the changes.

Under the new system, the government will only nominate candidates for the MD posts of Sonali Bank, Janata Bank, Agrani Bank, Rupali Bank, BASIC Bank and Bangladesh Development Bank Ltd (BDBL).
The respective bank boards will make the final appointments after obtaining a no-objection certificate from Bangladesh Bank.

The initiative aims to bring greater transparency to senior appointments in the banking sector, enhance professionalism and restore administrative dynamism, according to the policy.

Under the new policy, a seven-member high-level nomination committee led by the finance minister will be formed to select MD candidates.

The committee will review candidates’ educational qualifications, banking experience and professional records, conduct interviews and prepare a merit-based list.

After the committee makes its recommendation, obtaining Bangladesh Bank’s no-objection clearance will be mandatory. Once the clearance is obtained, the respective bank board will make the final appointment.