Don’t involve directors in purchase, procurement

The Bangladesh Bank has asked banks not to involve its directors of the board in purchase and procurement related activities.

In a notice issued on Wednesday, the regulator mentioned that some bank directors are involved in the purchase and procurement of essential products and services of their respective banks, which is a violation of Bank Company Act 1991.

The notice issued by BB said such actions violate the sub-sections 7 and 8 of the section 18 under this act, and pose a big obstacle against bringing good governance into the banking sector. The banks have been asked to take necessary initiatives in the next meeting of the governing body to ensure implementation of the directives.