Dhaka, Bangladesh (BBN)– The central bank of Bangladesh on Tuesday amended its rules on appointment and removal of the chief executive officers (CEOs) of commercial banks, prohibiting their sacking sans its prior permission.

The authorities of commercial banks cannot force the CEOs to submit their resignation or cancel their appointment contract without prior approval from the Bangladesh Bank (BB), according to the amended rules.

“The central bank wants to ensure transparency of the CEO-resignation process through amending the rules,” a senior BB official told BBN in Dhaka.

The CEOs will have to inform the chairmen of the boards of directors of the respective banks about the valid grounds for resignations a month before if they want to scrap appointment contracts voluntarily before the expiry of the agreement, the central bank said in a circular.

A copy of the notice will have to be submitted to the BB at the same time, it added.

The BB official also said the central bank will verify the causes of resignation of the CEOs after receiving the notice before a month.

On the other hand, the same process will have to be followed by the boards of directors of the banks if they want to terminate appointment contracts of the CEOs.

In case of posts of CEO falling vacant, the banks have been empowered to appoint their immediate subordinate officers as acting CEOs for maximum three months and inform the central bank about the appointees.

The new order will not be applicable for specialised banks in Bangladesh.

BBN/SSR/AD-24Dec14-7:55 am (BST)