Dhaka, Bangladesh (BBN)- The central bank of Bangladesh has asked four private commercial banks (PCBs) to bring down the number of directors from a family within two from the existing level by October 20.
The PCBs having more than two directors from a family are National Bank Limited (NBL), City Bank Limited, First Security Islami Bank Limited and Premier Bank Limited.
“The central bank issued a directive separately to the PCBs on Sunday in this connection,” a senior official of the Bangladesh Bank (BB) told BBN in Dhaka, adding that the BB will decided the next course of action after receiving responses from the banks concerned by the stipulated timeframe.
He also said the central bank has set the deadline for implementation of the provision relating to the number of directors from a family in line with the existing Banking Companies Act (Amended)-2013 after issuing warring thrice.
Spouses, parents, children, brothers and sisters and their dependants would be considered members of a family, the central banker explained.
The amended Banking Companies Act came into effect on July 22 last year, the provision for which was supposed to be implemented within one year of the act coming into effect.
The amended act stated that more than two directors from a family cannot be on the board of any bank, while the number of directors would be maximum 20 and in every bank there will be two to three independent directors.
BBN/SSR/AD-12Oct14-11:55 pm (BST)