BAB decision on doubling bank capital, directors soon
FE Report | Thursday, 21 August 2008
The Bangladesh Association of Banks (BAB) Wednesday discussed issues relating to doubling of bank capital, appointment of two directors from among depositors and tenure of the existing directors.
"We'll take a final decision about the issues shortly," a senior member of the BAB told the FE after attending the BAB meeting, held at its office with its Chairman Nazrul Islam Mazumder in the chair.
He also said the BAB members reviewed the matters at the meeting.
The Bangladesh Bank (BB) in a circular recently instructed the commercial banks for doubling their paid-up capital and reserve to Tk 4.0 billion from the existing Tk 2.0 billion by August 11, 2011.
Of the amount, the paid-up capital must worth a minimum of Tk 2.0 billion, according to the circular.
On Tuesday, the central bank asked the commercial banks to complete the appointment process of two directors from among the depositors by September 30 next.
On May 22 last, the BAB urged the central bank for taking steps to extend the tenure of directors of the commercial banks, particularly the private sector ones.
The apex body of the country's private commercial banks (PCBs) has made the appeal as the tenure of more than 100 directors of the banks will expire by October as per the existing amended Banking Companies Act.
"We'll take a final decision about the issues shortly," a senior member of the BAB told the FE after attending the BAB meeting, held at its office with its Chairman Nazrul Islam Mazumder in the chair.
He also said the BAB members reviewed the matters at the meeting.
The Bangladesh Bank (BB) in a circular recently instructed the commercial banks for doubling their paid-up capital and reserve to Tk 4.0 billion from the existing Tk 2.0 billion by August 11, 2011.
Of the amount, the paid-up capital must worth a minimum of Tk 2.0 billion, according to the circular.
On Tuesday, the central bank asked the commercial banks to complete the appointment process of two directors from among the depositors by September 30 next.
On May 22 last, the BAB urged the central bank for taking steps to extend the tenure of directors of the commercial banks, particularly the private sector ones.
The apex body of the country's private commercial banks (PCBs) has made the appeal as the tenure of more than 100 directors of the banks will expire by October as per the existing amended Banking Companies Act.