The Bangladesh Bank (BB) has instructed banks to properly maintain the rules and regulations in making transactions with people associated with boards and management of the banks concerned to ensure effective use of their funds, and to gain and maintain confidence of depositors, reports BSS.
The central bank in a circular Sunday said prior permission will have to be taken from board of directors for all financial transactions with people, associated with board and management of banks.
For giving loans, advance, guarantee and other loan facilities in favour of directors, the respective rules and regulations, including loan limit, approval of loans, and prior approval of BB etc. must be maintained strictly, BB said.
Banks will have to follow the respective rules and regulations for giving loans to independent directors, nominated directors and alternative directors, it said, adding that the special rules-regulations for giving loans to the government nominated directors must be maintained.
The central bank has also instructed banks to follow the respective rules-regulations for giving loans, advance, guarantee and other facilities to managing directors/chief executives of the banks concerned. Banks must also maintain the rules-regulations for giving loans to large shareholders of the banks concerned.
Banks asked to follow rules
FE Team | Published: February 24, 2014 00:00:00 | Updated: November 30, 2026 06:01:00
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