BB asks IBBL to seek prior approval for hiring DMDs

The central bank has asked the Islami Bank Bangladesh Limited (IBBL) to seek prior approval from now on for appointing, reappointing or contracting all deputy managing directors (DMDs) of the largest Sharia-based bank, officials said.
The Bangladesh Bank's (BB) latest instruction came after detecting irregularities in re-issuing contractual appointment to an IBBL DMD recently.
"We've also instructed the bank to follow 'fit and proper test criteria' for appointing DMDs as in the case of MD," a BB senior official told the FE on Tuesday.
He also said BB has already directed the chairman of IBBL board of directors to cancel the contractual appoint of the DMD - Mohammad Nurul Islam - immediately and take action against him in line with the existing rules and regulations.
A three-member BB probe team found that the DMD had concealed information on his criminal cases, and illegally worked with two banks simultaneously - IBBL and Jaiz Bank Plc of Nigeria.
The IBBL DMD was accused in three criminal cases, filed with Mirpur police station in Dhaka, and was arrested thrice, according to the BB officials.
"The contract of Mr. Islam has already been cancelled by the authority concerned," an IBBL official told the FE.   
The FE tried to contact Mr. Islam for his comment regarding the issue, but his mobile phone was switched off.  
The central bank also sought explanations from the IBBL board about failure in carrying out its responsibilities in reappointing the said DMD.
Besides, BB sought explanation on an IBBL independent director's crossing limits of jurisdiction and regularly interfering into the bank's day-to-day affairs.
IBBL has been asked to submit explanation within December 22.
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