Dhaka, Bangladesh (BBN)– The central bank of Bangladesh has asked six directors of two private commercial banks (PCBs) to retain any one of the directorships of financial institutions by relinquishing the rest within 15 days.
“We’ve issued letters separately to the directors of the banks concerned Monday in line with the existing Banking Companies Act and Financial Institutions Act,” a senior official of the Bangladesh Bank (BB) told BBN in Dhaka.
The directors have been asked to inform the BB within stipulate timeframe after canceling other directorships of the financial institutions excepting only one, the central banker explained.
“The directors have violated both the acts through holding one more directorship of both the commercial bank and the financial institution at the same time,” the BB official noted.
The central bank sent the notices to five directors of City Bank Limited and one of Mercantile Bank Limited.
The five directors now holding more than one post of director of the City Bank are Aziz Al Kaiser, Hossain Khaled, Rubel Aziz, Meherun Haque and Hossain Mehmood.
The BB also sent the letter to Md. Shahidul Ahsan of Mercantile Bank on the same ground.
Under the amended Banking Companies Act, 1991, any person who is holding the directorship in a board of a bank company will not eligible to hold directorship of any other bank company or financial institution at the same time.
Notwithstanding anything contained in any other law for the time being in force, no person who is director of any other financial institution, of a banking company or of an insurance company shall be qualified to be director of a financial institution, according to the Financial Institutions Act, 1993.