Lack of corporate governance code in banks, NBFIs irks BB Governor
Thursday, 28 August 2008
Bangladesh Bank Governor Salehuddin Ahmed Wednesday expressed frustration that the commercial banks and non-bank financial institutions (NBFIs) had no written code for corporate governance, reports UNB.
He was also worried in this connection as the banks and NBFIs would have to achieve a new global standard of corporate governance under Basel II within a stipulated timeframe.
"Unless you (banks and NBFIs) have a guideline, it's difficult to practise corporate governance," the BB Governor told a seminar on corporate governance at Hotel Purbani.
Bangladesh Bank in cooperation with Bangladesh Enterprise Institute (BEI) organised the day-long SAARCFINANCE seminar on 'Corporate Governance in Banks and Financial Institutions'.
SAARCFINANCE is a network of SAARC central bank governors and finance secretaries to share experiences on macro-economic policy issues among member countries of the region.
BEI Director Lopa Rahman presented the findings of a study on corporate governance issues in the banks and NBFIs of Bangladesh.
Senior executives of the central banks, commercial banks and financial institutions from the member countries took part at the seminar.
The Bangladesh Bank Governor said that the banks had no written code of conduct and no designated official to look after the corporate governance issues and succession planning.
He called upon the commercial banks and financial institutions to have "some kind of corporate governance guidelines to protect the interest of the stakeholders."
He was also worried in this connection as the banks and NBFIs would have to achieve a new global standard of corporate governance under Basel II within a stipulated timeframe.
"Unless you (banks and NBFIs) have a guideline, it's difficult to practise corporate governance," the BB Governor told a seminar on corporate governance at Hotel Purbani.
Bangladesh Bank in cooperation with Bangladesh Enterprise Institute (BEI) organised the day-long SAARCFINANCE seminar on 'Corporate Governance in Banks and Financial Institutions'.
SAARCFINANCE is a network of SAARC central bank governors and finance secretaries to share experiences on macro-economic policy issues among member countries of the region.
BEI Director Lopa Rahman presented the findings of a study on corporate governance issues in the banks and NBFIs of Bangladesh.
Senior executives of the central banks, commercial banks and financial institutions from the member countries took part at the seminar.
The Bangladesh Bank Governor said that the banks had no written code of conduct and no designated official to look after the corporate governance issues and succession planning.
He called upon the commercial banks and financial institutions to have "some kind of corporate governance guidelines to protect the interest of the stakeholders."