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Managements, depositors both get into panic

Sudden changes to banks' boards

FE Report | January 04, 2018 00:00:00

Managements and depositors both panicked following sudden changes to different banks' boards of directors, according to bankers.

Newly elected Chairman of the Association of Bankers, Bangladesh (ABB) Syed Mahbubur Rahman sought policy support from the central bank for stemming such tide of changes.

If changes are need, he pleaded, that should be done in smooth way so that it does not create any panic among any stakeholders, particularly bank depositors.

The ABB chief made the appeal at a bankers' meeting held at the central bank headquarters in Dhaka Wednesday with Bangladesh Bank (BB) Governor Fazle Kabir in the chair.

The governor assured the country's top bankers of looking into the matter if any high-ups of a bank concerned get victimized for such a sudden change, according to the bankers and the BB officials.

The central bank chief observed that change in the board of directors of a bank is a normal phenomenon, they added.

"We always welcome the smooth changes for good result but do not want sudden changes," the ABB chief told reporters after the meeting was over.

"The BB governor assured us of looking into the matter."

ABB's worries came after serial changes brought in some banks' boards of directors in the last calendar year, 2017.

At the meeting, the BB advised that the bankers provide loans in the real sectors for ensuring the quality of credits, according to Mr. Rahman.

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