Dhaka, Bangladesh (BBN) – The central bank of Bangladesh has issued letters of intent (LoIs) to nine newly-approved commercial banks, allowing maximum 20 directors in their boards instead of 13, as declared earlier, officials said.
“The central bank has issued the LoIs to the proposed chairmen of the banks, asking them to comply with the requirements and existing rules and regulations within six months,” a senior official of the Bangladesh Bank (BB) said, adding that the BB will issue licences to the approved banks only after they comply with all requirements of the guideline.
“We’ve raised the number of directors for the new commercial banks in line with the board decision,” another BB official said.
The BB board made the amendment to the guideline, relating to the number of directors of the new banks, in the same meeting on April 8, which approved six more private commercial banks (PCBs), BB official added.
On September 27, the central bank published the guideline to establish new banks, with a restriction to keep the number of directors in their boards within 13.
The BB board earlier approved some amendments to the guideline, like – enhancement of the required paid-up capital to BDT 4.0 billion from BDT 2.0 billion for the NRB banks.
On April 4, the BB also approved three new commercial banks, sponsored by non-resident Bangladeshis (NRBs), to help boost the country’s foreign exchange inflow.
“The authorities concerned of the approved banks will have to apply for licence to the central bank after properly complying with the LoI’s requirements,” another BB official said.
The central bank official also said the BB may issue licence before six months, if any approved bank can comply with the BB’s requirements.
The paid-up capital of a new bank will not be less than BDT 4.0 billion, which will be provided by its sponsors, the central bank said earlier in its guideline for setting up new commercial banks.
If an individual or any member of his/her family is or had been a loan defaulter with a bank or a financial institution at anytime during the past five years, he or she will not be eligible to apply as a sponsor of any proposed bank.
An individual awaiting verdict of any undisposed lawsuit in any court/tribunal against his/her loan default status will not be eligible to apply as a sponsor of the proposed bank, the guideline said.
BBN/SSR/AD-18Apr12-8:04 am (BST)
