Bangladesh Bank on Monday gave 10 more days to the three banks which failed to reduce the number of directors from a single family to two in their respective boards in accordance with the bank company act. The three banks are National Bank, Premier Bank and The City Bank.
\nThe BB on Monday issued separate letters to the three banks asking them to reduce the number of directors from a single family by October 30 following their appeal for an extension of the deadline.
\nEarlier on October 12, the BB issued letters to four banks (including the three) asking them to reduce the number of directors from a single family by October 20 as they had more than two members of a family as directors in violation of the Bank Company Act (Amendment) 2013.
\nFirst Security Islami Bank, however, decreased the number of directors from a single family in line with the BB directive, a BB official told New Age on Monday.
\nNational Bank appealed to the central bank on Wednesday to extend the deadline by one month as their directors concerned are now staying aboard, he said.
\nPremier Bank appealed to the BB to extend the deadline by three months while The City Bank applied for a one-and-a-half-month extension.
\nThe central bank, however, rejected their proposals and asked them to reduce the directors from a single family by this month, the official said.
\nThe central bank will cancel the excess directorship from a single family by its own if the banks fail to do so by the new deadline, he said.
\nThe City Bank has five members of one family and four members of another family as board members.
\nNBL is maintaining five members of a family while Premier Bank four members of a family in their boards of directors.
\nThe revised bank company act set a deadline of one year to reduce the board members from a family that ended on July 22 this year, but the four banks failed to comply with the direction, the central banker said.<\/p>\n

-With New Age<\/strong> input<\/p>\n","protected":false},"excerpt":{"rendered":"

Bangladesh Bank on Monday gave 10 more days to the three banks which failed to reduce the number of directors from a single family to two in their respective boards in accordance with the bank company act. The three banks are National Bank, Premier Bank and The City Bank. The BB on Monday issued separate … Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_editorskit_title_hidden":false,"_editorskit_reading_time":0,"_editorskit_is_block_options_detached":false,"_editorskit_block_options_position":"{}","footnotes":""},"categories":[4],"tags":[],"yoast_head":"\n