An expert suggestion from an international meet in Dhaka calls for devising a minimum qualification criterion for bank directors to ensure better governance within the financial sector.
At a time when banks in Bangladesh are facing some major management problems, the banking experts from home and abroad also suggested creating a fit list for the directors of the banks and arranging training for them to enhance the capacity of banks' governing bodies.
Their views came during the two-day Regional Banking Conference organized by Bangladesh Institute of Bank Management. Four countries from South Asia, including host Bangladesh, India, Nepal and Bhutan, took part in the event that concluded Monday.
"Training should not be regarded as an expense. Rather, it should be regarded as an investment," Adviser and former Deputy Governor of Bangladesh Bank S K Sur Chowdhury said on the occasion.
Citing examples from Nepal, which has a nonperforming loan ratio of less than 2.0 per cent, speakers pointed out that in the Himalayan nation, it is mandatory for the bank directors to undergo training.
"In addition, banks in Nepal are supposed to channel 3.0 per cent of their net profits in to training programs," said Sanjib Subba, Chief Executive Officer of the National Banking Institute of Nepal.
Experts at the seminar observed that to deal with diverse challenges of banking in the upcoming decades, directors of the banks ought to be well-educated and better qualified.
They also need to be familiar with modern technological trends given the growing advent of fintech or financial technology.
"In this context, there is no alternative to increased capacity building of the bank directors," said Dr. Toufic Ahmad Choudhury, Director-General of BIBM.
Addressing these concerns, S K Sur Chowdhury said, "The issue of the training of bank directors is under consideration of the Bangladesh Bank."
Bangladesh Institute of Bank Management can help the central bank in this regard, he added.
Dr. K.L. Dhingra of the National Institute of Bank Management of India, Sanjib Subba, CEO of the NBI of Nepal, PenjorGyeltshen of the Financial Institutions Training Institute of Bhutan and Country Manager of Commercial Bank of Ceylon in Bangladesh Varuna PriyashanthaKolamunna also spoke on the occasion.
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