Appoint chairman from banks' independent directors

The banks of Bangladesh are plagued by a plethora of irregularities and weak governance practices, leading to the growth of Non-Performing Loans (NPLs) and severe liquidity crises. Consequently, there is a growing call for the appointment of a chairman from the independent directors of banks. Recently, the Bangladesh Bank's former governor, Dr Atiur Rahman, has also suggested this remedy.

Ensuring good governance in the financial sector is one of the main challenges at present. To address this, professional individuals should be appointed as independent directors. Additionally, the implementation of the new Bank Company Act and the merger of weak banks should be encouraged to prevent voluntary defaulters.

It is essential to recognise that those who claim to be the main owners of private banks are not the true owners; rather, bank depositors are the principal stakeholders. Therefore, if independent directors become chairmen, they will represent the real owners of the banks.

Priyanka Islam

A banker

Dhaka