Resignation deadline extended by a year

The Bangladesh Bank (BB) has backtracked from a recent instruction, in which it had said that the chairperson of any of the executive, audit or risk management committees of any bank will have to immediately resign from the posts they currently hold at that bank’s subsidiary companies.

In a May 11 circular, the BB had said that the persons in question will have to resign by June 30 this year.

However, in another circular to all scheduled banks on Wednesday, the central bank extended the deadline for resignation from those posts in the subsidiary companies till June 30, 2023.

The move came after chairmen and directors of many banks expressed dissatisfaction and urged the central bank to relax the rule.

Explaining the change in decision, the BB said that if the posts of chairman, director or member in the subsidiaries are immediately vacated, there will be a risk that the companies will suffer from a lack of experience and expertise in the management and the bank in question will be at risk of incurring a financial loss.

Apart from the deadline extension, other instructions in the previous circular will remain unchanged, it added.

The previous circular had said that the management of the banks concerned will have to inform the central bank within seven working days after the posts were vacated.