BB asks banks to follow approval policy in director appointment

Bangladesh Bank has warned the banks to follow the approval policy before appointing new directors or in case of reappointment.

In a circular on Sunday the central bank said it is always mandatory to take approval before appointing a director of any bank.

And in this case the term used in the regulation is “new director”, which means every director’s appointment is renewed after an annual general meeting.

So, after each AGM every director will be counted as a new director and the banks have to take approval for their appointments.

“But, it has been observed, some banks are creating their own explanation of the rule which deviates the core focus of the rule,” said the BB.

So, from now all directors of any bank, either new or reappointment, have to take approval from the central bank, said the circular.