Foreign banks asked to follow applicable rules in appointing CEO
25 February 2015, Nirapad News: Foreign banks operating in Bangladesh have been asked to follow the existing rules and regulations in appointing their Chief Executive Officers (CEOs).
Bangladesh Bank (BB) in a circular on Wednesday directed all foreign banks having branches in the country to follow the rules and regulations as described in the Bank Company Act, 1991 regarding appointment of the chief executives.
In the circular, BB referred to the clause 15 Ka (2) of the Bank Company Act, saying that the stipulated rules and regulations, which prohibit bank leaving the position of CEO vacant for more than three months, are also applicable for the foreign banks operating here.
“This is not new, but the circular was issued to make it clear that the specific rules and regulations are also applicable for the foreign banks doing business in Bangladesh,”told an official of the Banking Regulation and Policy Department (BRPD) of BB.
The circular also advised the foreign banks to obtain all necessary documents including the work permit from the Board of Investment (BoI) for getting permission from the BRPD for appointing their CEOs.
Currently, nine foreign banks are operating in Bangladesh. Among these banks, National Bank of Pakistan (NBP) left its CEO position for Bangladesh operation vacant for more than three months, said a BB official, pointing out that the bank had not got necessary permission yet from the BoI for appointing its CEO.