The Bangladesh Bank (BB) has limited control over state-owned banks as the government holds the authority to appoint chairmen, directors and chief executive officers of the banks.

As per the Bank Company Act, the Banking and Financial Institutions Division of the Finance Ministry is authorised to make those appointments.

The central bank holds the power to appoint the above mentioned posts of the private banks.

But in the cases of state-owned banks, it has limited power to exercise, reports banglanews24.com.

In consequence of recent monetary scam of Hallmark Group, experts opined that time had come to change the 46 (6) section of Bank Company Act.

Experts said the central bank can not take stern actions against the state-owned banks as the finance ministry holds power over them. Amending the Banking Company Act, the central bank should be empowered over all the state-owned and private banks.

Former Governor of BB Dr Salehuddin Thursday said, “The central bank holds the power to suspend the director, chairman or CEO of any commercial banks other than the state-owned ones.”

“I think BB should be empowered to control all the banks and financial institutions, amending the current Act,” he added.

“The finance ministry does not need the Banking and Financial Institutions Division anymore,” former BB governor said. “Once it was necessary, at present it is no longer needed.”

Krishi Bank Chairman Khandaker Ibrahim Khaled also expressed the same Wednesday last.

News: The Daily Sun/Bangladesh/04-Sep-12