Banks asked to appoint 2 directors from among depositors by Sept 30
FE Report | Wednesday, 20 August 2008
The Bangladesh Bank (BB) has asked the commercial banks to complete the appointment process of two directors from among the depositors by September 30 next, officials said.
The central bank issued a circular in this connection Tuesday and asked the chief executives of all local commercial banks to appoint the directors within the stipulated timeframe.
"We've asked the banks to appoint such directors to comply with the existing rule," a BB senior official told the FE on the day, adding that the banks will have to take necessary initiatives for appointment new directors within 15 days in the event of retirement of such directors.
On July 23 last, the BB issued a rule allowing the commercial banks to appoint two directors from among the depositors in line with the existing Bank Companies Act.
Under the new rule, the board of directors of a bank will submit proposal to the central bank seeking 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, if necessary, might seek more names for appointment of the directors from the board of directors of the bank concerned.
The bankers, however, said that they would be able to complete the appointment process for such directors within the time farm, set by the central bank.
"We will take necessary measures soon to appoint such directors in line with the BB's advise," Managing Director of the National Credit and Commerce Bank Limited Nurul Amin told the FE.
He also said that banks would not face any problem to comply with the BB's deadline.
The central bank issued a circular in this connection Tuesday and asked the chief executives of all local commercial banks to appoint the directors within the stipulated timeframe.
"We've asked the banks to appoint such directors to comply with the existing rule," a BB senior official told the FE on the day, adding that the banks will have to take necessary initiatives for appointment new directors within 15 days in the event of retirement of such directors.
On July 23 last, the BB issued a rule allowing the commercial banks to appoint two directors from among the depositors in line with the existing Bank Companies Act.
Under the new rule, the board of directors of a bank will submit proposal to the central bank seeking 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, if necessary, might seek more names for appointment of the directors from the board of directors of the bank concerned.
The bankers, however, said that they would be able to complete the appointment process for such directors within the time farm, set by the central bank.
"We will take necessary measures soon to appoint such directors in line with the BB's advise," Managing Director of the National Credit and Commerce Bank Limited Nurul Amin told the FE.
He also said that banks would not face any problem to comply with the BB's deadline.