The central bank has decided to protect job security of the chief executive officers (CEOs) of the non-banking financial institutions (NBFIs) for ensuring good governance in the sector.
"We'll issue a directive with protecting job security of the NBFIs' CEOs like commercial banks soon," SK Sur Chowdhury, deputy governor of the Bangladesh Bank (BB) told the FE Wednesday.
The central bank has taken the latest move against the backdrop of seeking job protection by the CEOs of NBFI's so that their board of directors cannot remove or suspend them without prior approval from the BB.
Asad Khan, chairman of the Bangladesh Leasing and Finance Companies Association (BLFCA), welcomed the BB's latest move, saying that it would help to reduce irregularities in the sector to a great extend.
"We're thankful to the BB for taking such move to protect our job securities like the banks," Mr Khan noted.
Earlier on December 23, the central bank amended its rules on appointment and removal of CEOs of commercial banks, prohibiting their sacking sans its prior permission.
Under the existing rules, the commercial bank authorities cannot force the CEOs to submit their resignation letters or cancel their appointment contract without prior approval of the central bank.
On Tuesday, the central bank warned the top executives of NBFIs against sanctioning loans in favour of their directors, defying the existing rules and regulations.
Currently, 31 NBFIs are running their business across the country.
   siddique.islam@gmail.com
BB to secure NBFI CEOs\\\' jobs
Siddique Islam | Published: March 05, 2015 00:00:00 | Updated: November 30, 2024 06:01:00
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