BB reshuffles three SoCBs' observers

The central bank has reshuffled its observers in three state-owned commercial banks (SoCBs) to further strengthen its monitoring on the banks for improving their financial health, officials said.

Under the latest measure, Kazi Sayedur Rahman, an executive director (ED) of the Bangladesh Bank (BB), has been shifted to the Agrani Bank Limited from the Janata Bank Limited as observer.

Besides, ED of the central bank Mohd. Humayun Kabir has been made observer in the Janata Bank Limited from the Rupali Bank Limited.

Another ED of the BB Md. Serajul Islam has been appointed as observer in the Rupali Bank Limited from the Agrani Bank Limited.

The replacing of observers in the banks has been made through separate letters, issued by the BB's Department of Offsite Supervision (DOS).

"It's a routine work," a senior official of the BB told the FE on Wednesday while replying to a query.

The central bank has re-arranged its observes in the three SoCBs, he added.

The observers are empowered to attend policy-making meetings of the SoCBs, including those of board of directors, executive committee and audit committee, to oversee their functions.

The BB started appointing observers in November 18, 2015 to help four SoCBs through proper implementation of the relevant memorandum of understanding (MoU).

The public sector banks are now being operated under the MoU with the central bank for improving their financial condition, internal control and compliance (ICC), and corporate governance.

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