Dhaka, Bangladesh (BBN)- Three private commercial banks (PCBs) have sought more time from the Bangladesh Bank (BB) to cut the number of directors from a single family to maximum two.
The PCBs having more than two directors from a family are: National Bank Limited (NBL), City Bank Limited and Premier Bank Limited.
Earlier on October 12 last, the Bangladesh Bank (BB) asked four PCBs to bring down the number of directors from a family to maximum two from the existing level by October 20.
The Premier Bank has sought three months more while the NBL and the City Bank wanted one month separately for complying with the BB’s directive.
The BB extended the deadline for the NBL to October 30 from October 20 earlier for complying with the provision relating to the number of directors from a family in line with the existing Banking Companies Act (Amended)-2013.
“The central bank will take decision on extension of the deadline for other two PCBs soon,” a BB official told BBN in Dhaka.
He also said only First Security Islami Bank Limited has informed us after complying with our directive within the stipulated timeframe.
Other three PCBs have sought more time mentioning different causes including non-availability of their chairmen and directors due to their sickness and business purposes, the central banker noted.
The amended banking law came into effect on July 22 last year and its provision was supposed to be implemented within one year.
Under the amended act, more than two directors from a family cannot be on the board of any bank while the total number of directors will be maximum 20. And in every bank, there will be two to three independent directors.
Spouses, parents, children, brothers, sisters and their dependants are considered as members of a family, according to the banking companies act.
BBN/SSR/AD-21Oct14-11:44 am (BST)