The Financial Institutions Division (FID) has decided to provide an improved method of training to the directors of state-owned banks, non-bank financial institutions and insurance companies for better administration and avoid financial mishap in the sector.
Officials of FID said the division is going to formulate a reformed training method which will include feedback and suggestions from experts in the sector, the officials said.
A five-member committee headed by Additional Secretary of FID A B Ruhul Azad to be formed in this purpose. Deputy Secretary Md Jahiduddiun will be the member secretary of the committee.
The committee will prepare training modules and implement the training. Moreover, the required budget for the training will also be prepared by the committee.
“The Financial Institutions Division earlier provided training for bank directors but loan default has not reduced in last two and half years,” former deputy governor of Bangladesh Bank Khandaker Ibrahim Khaled said.
He also said, previous training failed to bring result because the government took the wrong step of appointing party men as the directors of the banks.
The entire banking sector has to bear the brunt for this wrong decision – professionals and skilled people should be appointed directors, he added.
BASIC Bank still is burdened by the wrong appointment of Abdul Hye Bachchu in 2009. After Abul Maal Abdul Muhith had become the finance minister in 2009 bank directors were recruited on political consideration who had no training and no idea of running a bank, and allegations of financial scams in the banking sector soon began to surface.
When Abul Maal Abdul Muhith became the finance minister in 2014 again, he recruited former bureaucrats and bankers as the directors instead of party men.
However, there were no training for the directors and no instance of punishment if they are found of any wrongdoing.
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