Setting October 20 as the deadline for compliance, the central bank has asked four private commercial banks (PCBs) to cut down the number of directors from a single family to maximum two or face action for breach of the law.
The PCBs having more than two directors from a family are National Bank Limited (NBL), City Bank Limited, First Security Islami Bank Limited and Premier Bank Limited.
"We issued a directive separately to the PCBs Sunday in this connection," a senior official of the Bangladesh Bank (BB) told the FE.
He also said the central bank would decide the next course of action after receiving responses from the banks concerned within the stipulated timeframe.
"We've set the deadline for implementation of the provision relating to the number of directors from a family in line with the existing Banking Companies (Amendment) Act 2013 after issuing warning thrice," another BB official said.
The amended banking law came into effect on July 22 last year and its provision was supposed to be implemented within one year.
The amended act states that more than two directors from a family cannot be on the board of any bank while the total number of directors will be maximum 20. And in every bank, there will be two to three independent directors.
Spouses, parents, children, brothers and sisters and their dependants are considered members of a family, the central banker explained.
"We're scrutinising the list of directors of other banks to find out more than two directors from a family," the BB official noted.
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