The central bank will soon issue a rule allowing the commercial banks to appoint two directors from among the depositors in line with the existing Bank Companies Act.
"We'll issue a rule in a day or two to appoint two directors from among the depositors of banks," a senior official of the Bangladesh Bank (BB) told the FE Tuesday.
He also said the central bank has finalised the regulation on the basis of stakeholders' opinions.
On May 29 last, the BB made a public announcement seeking fresh opinion from the people to finalise the rule.
Under the rule, the board of directors of a bank will submit proposal to the central bank seeing approval on appointment of the directors.
"The appointment will be effective after receiving approval from the central bank," the rule said, adding that the central bank might seek more names for appointment of the directors from the board of directors of the bank concerned.
The directors to be appointed under the new rule will discharge their duty for a three-year term.
A three-member high-powered committee, headed by BB governor, will select the two directors for each commercial bank from among the depositors and appoint them for a three-year term, according to the first announcement made in March 12 last.
However, on April 6 last, the Bangladesh Association of Banks (BAB) sent a letter to the central bank raising objection to its move on appointment of two directors from among individual depositors in every bank.
On April 17 last, the central bank turned down the private commercial banks plea and asked them to submit fresh recommendations in this regard within two weeks.
On May 22 last, the central bank sought fresh proposals from the BAB to frame the modalities of selection of two directors from among depositors in each commercial bank.
Rule on appointing 2 directors from among depositors soon
Siddique Islam | Published: July 23, 2008 00:00:00 | Updated: February 01, 2018 00:00:00
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