BB makes diploma mandatory for promotion in NBFIs as well

After banks the Bangladesh Bank has now made the two-part diploma of the Institute of Bankers, Bangladesh, (IBB) mandatory for the promotion of senior officers or above officials non-banking financial institutions (NBFIs).

In a circular published on Wednesday, the Department of Financial Institutions and Markets (DFIM) of the central bank said the new decision has been made with an aim to increase the efficiency, skills and capacity of the NBFIs officials.

The decision will be effective from 1 January 2024.

Earlier on 8 February, the Bangladesh Bank made the two-part diploma of the Institute of Bankers Bangladesh mandatory for the promotion of bankers holding positions of senior officer or above, except for managing director and the immediate juniors, in all scheduled banks.

The circular said officials will receive marks against the two parts of the IBB diploma – Junior Associate and Diploma Associate – to get promoted. However, the rule will not be applicable for officers such as doctors, engineers and IT professionals who work in banks but are not directly involved in banking activities.

Meanwhile, bankers expressed mixed reactions to the circular.

On 20 February, central bank Governor Abdur Rauf Talukder held a meeting with the managing directors of a few banks, where he upheld the decision to make a banking diploma mandatory for bankers to get promoted to senior officer or equivalent posts.

Following the meeting, Bangladesh Bank spokesperson Mezbaul Haque said even if there are some changes in the process, the previous decision will remain in force.

He said, "There is no alternative to a banking diploma to enhance the scope of knowledge for bank officials. However, several changes are being made in the field of diploma."

The changes that will come in the syllabus and examination procedure will be published very soon, he added.