Bangladesh Bank will ask managing directors of scheduled banks to inform it about voluntary their resignation as the central bank has recently received allegations that board of directors of some banks forced their chief executive officers to resign. A BB official told New Age on Wednesday that the central bank would issue a circular in a day or two to all banks asking them to inform the central bank instantly if the managing directors resign willingly from their job.
Besides, the managing directors who will resign will have to explain to the central bank why he or she was leaving the job, according to the upcoming BB circular.
The managing director will have to place a notice to the respective board chairman explaining the cause of his or her resignation.
The BB official said that the banks could not suspend or terminate the managing directors from their jobs without taking approval from the central bank in line with bank company act.
For this reason, the boards of the banks usually force the managing directors to voluntary resign their jobs they did not like the respective MDs, he said.
The central bank will take punitive measures against the respective boards if its investigation found that the boards forced the MDs to resign their jobs.
The official said that some banks including National Bank Ltd had recently forced their MDs to resign their jobs violating the rules and regulations which put an adverse impact on the country’s banking industry.
BB officials said the new measures would bring discipline
in the corporate management of the banks.
-With New Age input
