Highlights:
- Govt changes appointment process for state-owned bank MDs
- Bank boards will make final MD appointments
- Seven-member committee will nominate suitable candidates
- Bangladesh Bank clearance remains mandatory before appointments
- New policy sets age, qualification and experience criteria
The government has changed the appointment process for managing directors (MDs) or chief executive officers (CEOs) of six state-owned commercial banks, ending its direct appointment authority over the posts.
The Financial Institutions Division of the Ministry of Finance recently issued a policy outlining the changes.
Under the new system, the government will only nominate candidates for the MD posts of Sonali Bank, Janata Bank, Agrani Bank, Rupali Bank, BASIC Bank and Bangladesh Development Bank Ltd (BDBL).
The respective bank boards will make the final appointments after obtaining a no-objection certificate from Bangladesh Bank.
The initiative aims to bring greater transparency to senior appointments in the banking sector, enhance professionalism and restore administrative dynamism, according to the policy.
Under the new policy, a seven-member high-level nomination committee led by the finance minister will be formed to select MD candidates.
The committee will review candidates’ educational qualifications, banking experience and professional records, conduct interviews and prepare a merit-based list.
After the committee makes its recommendation, obtaining Bangladesh Bank’s no-objection clearance will be mandatory. Once the clearance is obtained, the respective bank board will make the final appointment.
However, the government will continue to appoint the MDs of six specialised banks, including Bangladesh Krishi Bank and Rajshahi Krishi Development Bank (RAKUB), as well as the Bangladesh House Building Finance Corporation (BHBFC) and Investment Corporation of Bangladesh (ICB).
Candidates for the MD post must have at least a postgraduate degree. Those with higher degrees in economics, accounting, finance, banking or business administration (MBA) will receive preference.
Candidates cannot have obtained a third division at any stage of their academic career.
Applicants must be aged between 45 and 65. The appointment will be for a three-year contractual term.
Candidates will be considered ineligible if they have been involved in serious disciplinary misconduct, loan default, corruption allegations or money laundering.
Experience in information technology and risk management will receive special preference.
Although bank boards will appoint MDs, the government will continue to oversee the promotion and posting of deputy managing directors (DMDs) and general managers (GMs) at state-owned and specialised banks and financial institutions.
As part of the regulatory changes, the finance minister will now give final approval to these files instead of the Prime Minister’s Office.
The Financial Institutions Division expects the new policy to strengthen good governance in state-owned banks and ensure proper assessment of merit and competence.
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