BB issues guidelines on formation of finance cos’ boards
FE REPORT | Friday, 1 March 2024
The central bank has issued guidelines on formation of board of directors and eligibility of the board members of the finance companies with minimum age limit set at 30 years.
Among others, Bangladesh Bank (BB) in a circular issued on Thursday also said the maximum number of board members would be 15 having the highest two independent directors on the board.
It said members of a family having more than 5.0 per cent shares altogether would have maximum two members on the board of a particular finance company.
However, if the family members conbinedly hold shares ranging between 2.0 per cent and 5.0 per cent, one member of the family will be allowed to represent the board.
In a separate circular issued on the day, the central bank also said banks would not be equired to maintain any Cash Reserve Ratio (CRR) with Bangladesh Bank for offshore banking operations.
It has also been decided that Offshore Banking Operations (OBOs) are allowed to place funds to their Domestic Banking Units (DBUs) without limiting to settle the import payment of capital machinery, industrial raw materials, imports by the government and other permissible payment obligations as per prevailing foreign exchange rules and regulations.