Summary 

The new regulations mandate banking managing directors or CEOs to have 20 years of experience, aged 45-65, with a three-year tenure, requiring Bangladesh Bank approval for appointments. To ensure governance and depositor protection, candidates are interviewed by central banks and then assessed by a committee. MDs who quit must justify, and new hires are expected to meet performance goals for loans, with assessments taking into account financial gains. Having a spotless record during Bangladesh Bank inspections and abstaining from illicit or other business ventures are essential components of moral integrity. It requires two years of prior MD/CEO experience.

Content

The updated regulations for managing directors or CEOs in banking institutions impose stricter criteria to ensure competence and integrity in leadership roles.Instead of the prior requirement of 15 years, candidates now need to have at least 20 years of banking experience and be between the ages of 45 and 65. Three years is the maximum tenure, and appointments, reappointments, and terminations must be approved by the Bangladesh Bank after central bank interviews. Bangladesh Bank-constituted evaluation committees interview applicants to promote sound governance and protect depositor interests. MDs who are quitting must defend their choice in interviews with Bangladesh Bank. When selecting or promoting a managing director, the bank must set clear goals for loan performance, with assessments taking into account managerial and financial advancements. Moral integrity is emphasized, with restrictions on involvement in other businesses and prohibitions on fraudulent or illegal activities. Clean records in Bangladesh Bank inspections, no history of illegal activities during tenure, and prior MD/CEO experience of at least two years are prerequisites. Additionally, MDs cannot have family members on the bank’s board or be affiliated with its directors’ companies, nor be bank defaulters or tax evaders.

Picture and Article Source: The New Age Bangladesh