Regulatory Alerts2014-12-23
Added · Updated
Appointment and Responsibilities of Chief Executive of a Bank-Company
The proviso regarding the appointment of a Chief Executive Officer in BRPD Circular Letter No. 18 is replaced to state that Bangladesh Bank's decision on CEO appointment is final and removal requires prior approval. Bank companies must provide at least one month's notice with reasons to the Board and Bangladesh Bank for voluntary resignation or board-initiated termination. If the CEO position becomes vacant, the bank must immediately appoint a CEO In-charge from the next level of officials for a maximum of three months and notify Bangladesh Bank.
Website: www.bangladeshbank.org.bd Banking Regulation and Policy Department Bangladesh Bank Head Office Dhaka. BRPD Circular Letter No. 20 Date: 23 December, 2014 09 Poush, 1421 All bank companies working in Bangladesh except specialized banks. Dear Sir, Appointment and Responsibilities of Chief Executive of a Bank-Company. Please refer to BRPD Circular Letter No.18 dated 27 October 2013 on the captioned subject. Proviso of section A(11) of the aforesaid circular letter regarding appointment of CEO will be henceforth replaced as under: 11. Decision of Bangladesh Bank regarding appointment of CEO will be treated as final and such appointed CEO cannot be dismissed, released or removed from his office without prior approval from Bangladesh Bank. Howevera) In case the CEO desires to terminate the contract before expiry or resign from his office voluntarily, he shall serve at least one-month notice upon the Chairman of the Board stating the actual reason for such resignation, and, at the same time forward a copy of such notice to Bangladesh Bank. b) In case the Board of the Bank desires to terminate the contract before expiry or asks the CEO to tender resignation from his post, the Board shall serve at least one-month notice stating the reasons for such action; at the same time forward a copy of such notice to Bangladesh Bank and obtain approval of Bangladesh Bank for such removal. c) When the position of the CEO falls vacant due to resignation, expiry of contract, or any other reason, the bank shall immediately appoint a ‘CEO In-charge’ (for maximum 3 months) among the officials next to the CEO and notify Bangladesh Bank with details of such Officer In-charge. Other instructions contained in BRPD Circular Letter No. 18, dated 27 October 2013 will remain unchanged. This circular letter is issued with immediate effect. Yours faithfully, (Saiful Islam) Deputy General Manager Phone: 9530155
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