Bank CEO appointment: Cenbank sets up panel for interviews

The Bangladesh Bank has formed a four-member committee to assess qualifications and suitability for appointment and reappointment to the positions of managing directors or chief executive officers at banks.

In a circular issued on Sunday (3 March), the central bank announced that the deputy governor responsible for the Banking Regulations and Policy Department will serve as the chairman of the committee.

Additionally, the executive directors overseeing the Banking Regulations and Policy Department and the Department of Off-Site Supervision will serve as members of the committee.

Furthermore, the director of the Banking Regulations and Policy Department, Division II, will act as the member secretary of the committee.

The circular also emphasised that the Bangladesh Bank must be informed about action plans undertaken by banks in a bid to enhance depositor trust and customer service, particularly by addressing existing obstacles and focusing on credit discipline, improvement, excellence, technology, and innovation.

"Therefore, a four-member committee has been formed to verify the qualifications, suitability, commitment to responsibility, experience, age, and leadership qualities of the individuals nominated as managing directors at banks," it stated.

Working area of this committee

The committee will write a letter to the chairman of a bank regarding the interview of a candidate nominated for the post of managing director.

Upon receiving a positive recommendation from the committee regarding the appointment as managing director or chief executive officer, the Bangladesh Bank will approve their appointment or re-appointment.

If the nominee's qualifications, suitability, commitment to responsibility, experience, and leadership qualities are not considered positive and acceptable by the committee, the banking regulator will inform the respective bank's chairman through a letter, recording the reasons for not approving the appointment.

Former Bangladesh Bank governor Salehuddin Ahmed told The Business Standard that there is already a test system for the appointment of managing directors. "They have to be implemented properly," he added.

"I don't understand the logic of conducting their viva by issuing a new circular. To improve the governance of banks, directors must be controlled first. Otherwise, tightening the recruitment process of managing directors will yield no results," he pointed out.