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BB to discuss new pay structure with stakeholders today

Mehedi Hasan
26 Jan 2022 00:00:00 | Update: 26 Jan 2022 12:26:41
BB to discuss new pay structure with stakeholders today

Bangladesh Bank (BB) will hold discussions today with representatives of trade bodies of bank owners and bankers on the new pay structure for the entry-level bank executives set by the central bank—a move that was strongly opposed by the stakeholders.

The meeting comes five days after the BB fixed the salaries of the executives for the first time on January 20, which will go into effect from March 1 this year.

“BB governor will hold discussions on the issue with the leaders of Bangladesh Association of Banks [BAB] and Association of Bankers, Bangladesh [ABB] at 12.30 pm tomorrow,” BB spokesperson Md Serajul Islam told The Business Post on Tuesday.

The minimum entry-level salary for the bankers would be at Tk 28,000 in the probation period and the salary will be at Tk 39,000 after the probation period, according to the BB directive.

ABB Chairman and BRAC Bank Managing Director Selim RF Hussain was reluctant to talk about the issue before the meeting.

However, he had earlier said ABB was assessing the impacts of the central bank’s directive on the new wage structure for the private banks.

Taking a firm stand against the BB’s instruction, the owners and bank owners termed the new pay structure irrational in some cases.

The central bank’s instruction on the new wage structure for private bankers will hold back the job creation and banking services, they contended.

Policy Research Institute of Bangladesh Executive Director Ahsan H Mansur said that in principle, the central bank cannot issue such circulars.

“Bangladesh Bank should not interfere in private institutions in case of setting the bankers’ salaries,” Mansur, also the BRAC Bank chairman.

However, the BB showed logic behind its move saying that the difference of salaries between the CEOs and lower-level officials should be a reasonable level and the salaries and allowances of any officials and employees would not less than the present salaries and allowances.

“Any bank executives should not be forced to resign without any specific and proven allegations and deposit mobilization achieving target cannot be imposed for job security or salary rises,” said the BB directive. 

The central bank also had set Tk 24,000 as the minimum salary and allowance for the helping staff of private banks.

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