Dhaka, Bangladesh (BBN) – Directors burdened with loan default are likely to be removed from the boards of directors of insurance companies to ensure discipline in the country’s insurance sector, officials said.
The issue will be discussed at a coordination meeting of the watchdogs — the Bangladesh Bank (BB), the Securities and Exchange Commission (SEC), the Office of the Registrar of Joint Stock Companies and Firms and the Insurance Development and Regulatory Authority (IDRA), Micro-credit Regulatory Authority (MRA) and Department of Cooperatives (DoC) — scheduled to be held today (Wednesday) at the central bank headquarters in Dhaka with BB Governor Atiur Rahman in the chair.
“The meeting will also discuss the issue of CIB (Credit Information Bureau) report to be made mandatory for insurance company directors,” a BB official told BBN in Dhaka.
He also said the meeting would take decision in this connection after holding talks among them.
Under the existing provisions, any outstanding loan worth Tk 50,000 or above is included in the CIB reporting system.
The CIB was set up on August 18, 1992 at the central bank aiming to improve credit risks and reduce the extent of default loans.
“We’ll discuss different issues relating to the financial sector including capital markets at the meeting,” another official said, adding that the watchdogs were now working closely to promote stability in the country’s overall financial sector by strengthening their cooperation.
BBN/SSR/AD-13Mar13-8:40 am (BST)