The central bank has taken a move to ensure good governance in the country's banking sector through updating responsibilities and formation of banks' boards of directors, officials said.

The Bangladesh Bank (BB) issued three circulars in this connection Sunday and asked chairmen and chief executive officers (CEOs) of all the banks to comply with the existing rules and regulations in line with the Bank Company Act (Amended) 2013. 

Under the latest moves, the banks have been asked to form risk management committees along with the existing executive and audit ones to minimise fraud and forgeries in the banking sector.

The BB has specified the terms of reference and responsibilities of the committees to ensure accountability and transparency of the banks' management.

"We've taken the measures to protect the interest of depositors through establishing good governance in the banking sector," SK Sur Chowdhury, deputy governor of the BB, told the FE. 

He also said the central bank has issued the circulars in line with the Bank Company Act (Amended) 2013 to ensure corporate governance in the bank management. 

The central bank said prior approval will be sought from the BB for appointment of new directors of the banks excepting the specialised ones.

Currently, there are more than 600 directors in the commercial banks.

A meeting of the Board of Directors can be held once in a month, but it can be more if necessary. However, at least one board meeting has to be held in three months, according to the circulars. 

Regarding responsibilities of the chairmen of the boards of directors, the BB said the chairman of the board or chairman of any committee formed by the board or any director does not personally possess the jurisdiction to apply policymaking or executive authority. Therefore, he will not participate in or interfere into the administrative or operational and routine affairs of a bank.

The CEO will ensure compliance of the Bank Company Act, 1991 and/or other relevant laws and regulations in discharge of routine functions of the bank.

"The CEO shall report to the Bangladesh Bank of issues violative of the Bank Company Act, 1991 or of other laws/regulations and, if required, may apprise the board post facto," the BB said.

Besides, the BB issued a unified policy for the banks in appointing their advisors and consultants contractually.

Under the new rules, former director, chief executive officer or any other officer of the banks cannot be appointed as the advisor or consultant of the same banks contractually immediately after their retirement or termination.

However, they can be appointed as advisor or consultant of the same bank after passing one year from the date of their retirement or termination.

Bangladesh Bank (BB) on Saturday launched the web portal, Digital Map of Financial Services in Bangladesh at a function at the BB Training Academy. 

The map includes geographic information of bank branches, ATMs, agents, and other financial access points across the country. Bangladesh Bank Governor Atiur Rahman launched the web portal.

This project was sponsored by the Bill & Melinda Gates Foundation, facilitated by BB and Microcredit Regulatory Authority,

and implemented by a specialist firm Brand Fusion who hired local data collectors to go around Bangladesh over a six-month period earlier this year.

Speaking on the launch of the programme Atiur said the map would help us to generate information and analyse the financial access points and would eventually be a great value to the commercial sector.

“This new tools can complement our new Integrated Supervision System which is our new electronic portal which allows us to monitor many aspects of the financial sector both at the aggregate macro level as well as zoom into branch level data,” the governor said.

Besides, he said this new financial mapping tool to be used by both BB and the Microfinance Regulatory Authority (MRA) in making balanced and sound policy and regulatory decisions. 

For example BB staff can use this when giving bank branch permissions and also when determining the appropriate balance of branch, ATM, agent and other point of service.

AMM Farhad, Managing Director (CC) of SIBL, seen at a training course at the bank's training institute in Dhaka recently.

Social Islami Bank Limited (SIBL) organised a training course on "Foundation Course in Banking for Probationary Officer" at the bank's training institute in Dhaka recently.

AMM Farhad, Mana- ging Director (Current Charge) of SIBL, inaugurated the course as chief guest, said a press release.

Md Yunus Ali, Deputy Managing Director of the bank, and Divisional Heads of the Head Office attended the function.

Sheikh Abdul Hye Bacchu, Chairman of the Board of Directors of BASIC Bank Limited, inaugurates the 64th branch of the bank at Elenga in Tangail on Saturday.

The 64th branch of BASIC Bank Limited was inaugurated at Elenga in Tangail on Saturday.

Sheikh Abdul Hye Bacchu, Chairman of the Board of Directors of the bank inaugurated the branch as chief guest, said a press release.

Md Anwarul Islam, FCMA, Director, Fazlus Sobhan, Kanak Kumar Purakayastha, Deputy Managing Directors, high officials of the bank and local elites were present on the occasion.

The Grameen Bank board of directors will be automatically dissolved if the GB Law 2013 bill is passed in the House this week, official sources said.

An official of Bank and Financial Institutions Division said the number of Grameen Bank (GB) board members – which would be appointed by the government – would be the same 12 as it was earlier, but a change would be introduced to the formation of quorum.

The quorum would be comprised of three members instead of the existing four. The official added that the government was likely on the two major moves.

The Law and Parliament Affairs Ministry has already vetted the GB Law 2013 bill that has been sent to the parliament.

Finance Minister AMA Muhith is likely to place the bill in the House on Sunday for passing, and the banking division will issue a Security Regulatory Order on the election rule of GB’s board the same day.

Sources in banking division said existing GB board was currently non-functional because of ProfYunus’ strong influence over the bank through nine pro-Yunus women directors despite government intervention.

“We have a plan to hold a vigorous protest against the government’s intervention into Grameen Bank and its existing board,” Tahsina Khatun, a member of Grameen Bank’s board, told the Dhaka Tribune over phone on Saturday.

The finance minister deliberately provoked a crisis in Grameen Bank through amending GB law and election rule of the bank, she also pointed out.

“As per our plan to put a bar on implementing the upcoming government action against Grameen Bank, we are contemplating filing a case against the new law that would come into being,” Tahsina said.

The GB board member added if outsiders were brought in to conduct elections for the bank, it would lead to chaos, she warned.

The female board member claimed that they were elected board members of Grameen Bank and that their tenure would be up in 2015.

Earlier, Muhith said the GB Law 2013 bill would be placed in the parliament on Sunday.

He added that the nine “pro-Yunus” women directors of Grameen Bank would lose their positions once the parliament approved the bill.

“Prof Yunus used to select the women directors as per his choice and there have been no elections in Grameen Bank over the last 30 years since its inception.”

The finance minister noted that under a new set of rules, a new election for the GB board would be held shortly after the GB bill was passed in the House.