BSS, Dhaka :
Bangladesh Bank (BB) on Tuesday put some restrictions on the country’s all but specialised banks to appoint and terminate the chief executive officer (CEO).
In a directive to all banks sans the specialised ones, the central bank said that the decision of BB in appointing CEO would be deemed final, and the commercial banks would not be allowed to release or terminate the CEO without getting prior approval of the central bank.
The circular said if any bank wants to terminate its CEO prior to the expiry of his/her tenure, a notice with clarifying the reason of termination should be submitted to the board of directors and a copy of it to the central bank at least one month before the removal.
Any CEO would also get self-retirement, but should submit a notice with clarifying the reasons to the board of directors of the respective bank and a copy of it to the central bank one month ahead of the intended retirement.
“No bank will be allowed to force its CEO to resign without BB’s consent,” the circular said.
It further said that in case of a vacancy, respective bank should appoint the immediate qualified officer as the acting CEO, but such appointment should not last more than three months. The bank should also inform BB the details of the acting CEO immediately.
Bangladesh Bank (BB) on Tuesday put some restrictions on the country’s all but specialised banks to appoint and terminate the chief executive officer (CEO).
In a directive to all banks sans the specialised ones, the central bank said that the decision of BB in appointing CEO would be deemed final, and the commercial banks would not be allowed to release or terminate the CEO without getting prior approval of the central bank.
The circular said if any bank wants to terminate its CEO prior to the expiry of his/her tenure, a notice with clarifying the reason of termination should be submitted to the board of directors and a copy of it to the central bank at least one month before the removal.
Any CEO would also get self-retirement, but should submit a notice with clarifying the reasons to the board of directors of the respective bank and a copy of it to the central bank one month ahead of the intended retirement.
“No bank will be allowed to force its CEO to resign without BB’s consent,” the circular said.
It further said that in case of a vacancy, respective bank should appoint the immediate qualified officer as the acting CEO, but such appointment should not last more than three months. The bank should also inform BB the details of the acting CEO immediately.
