Shortage of manpower at the central bank is affecting routine works, including timely supervision of the 47 banks’ operation in the country at present, said sources in the Bangladesh Bank (BB).

They said that the recent approval of nine new banks - six new private commercial banks and three other NRB (non-resident Bangladeshis) Banks - has put another onus on the central bank;   it will have to supervise the works of these banks with its existing manpower.

As a regulator, the central bank is expected to maintain discipline in the financial sector. On receiving complaints regarding financial anomaly and client service, non-observance of central bank rules, circulars and guidelines, it has to take remedial measures.

Recently, the banking sector has become fiercely competitive. To attract customers, most banks are introducing new financial products for their clients. This has also added to the central bank’s responsibilities.

Besides, the BB has to monitor the banks’ responses in financing productive sectors to comply with the government’s target of economic growth. “In many cases, finishing a task is taking more time, as one official is having to do the work of two or more persons.

Officials working in some departments, including those of off-site supervision and banking inspection, are under tremendous pressure,” said a BB official.

Another official said a slow and inefficient recruitment process is only adding to the pressure.

At present, about 5,000 employees are working in the head office and eight other branches of the central bank. The branches are in Chittagong, Khulna, Bogra, Rangpur, Sylhet, Rajshahi, Barisal and Motijheel , according to BB executive director M. Mahfuzur Rahman. Rahman, however, could not specify the number of posts lying vacant.

He said that months ago, the BB had decided to recruit 100 entry-level officers, but the procedure has not yet been completed. “Yes, there is a vacuum at the bottom. However, the authorities are in the process of recruiting more employees. It will take about nine months to complete the procedure,” he added.

He said the appointment process has become slow owing to some technical limitations. “One of the limitations is the ‘FF (Freedom Fighter) quota’. In most cases, applicants under the FF quota can’t be found.

We keep 30 per cent of the total recruitment target vacant as candidates under this quota are not available,” he pointed out.

Talking to The Independent on Monday, Dr Mustafa Kamal Mujeri, member of the BB board of directors and executive director of the Bangladesh Institute of Development Studies (BIDS), said capacity development is a continuous process, and that the Bangladesh Bank’s human resource department would reorganise the employment plan.

“I don’t think it is a big challenge to cope with the emerging duties. Capacity development for effective supervision is a continuous process, and hopefully the BB will be gradually able to do it,” he added.

He said the new banks will take some more time to begin work. “So, the BB has ample time to prepare itself,” he pointed out.

The Independent/Bangladesh/ 11th April 2012