BRPD Circular Letter No. 12: Regarding evaluation committee of Bangladesh Bank on appointment/reappointment to the post of Managing Director/Chief Executive Officer of a bank-company

BRPD Circular Letter No. 12 Bangladesh Bank Head Office Motijheel, Dhaka-1000 Banking Regulation and Policy Department Bangladesh

BRPD Circular Letter No. - 12 Date: ----------------------- 03 March 2024

To, Chairman, Board of Directors All Scheduled Banks operating in Bangladesh, except Specialized Bank-Corporations.

Dear Sir,

Context of the Committee of Bangladesh Bank regarding the evaluation of eligibility and suitability for the appointment/reappointment of the post of Managing Director or Chief Executive Officer of a Bank-Corporation.

2. Reference is invited to BRPD Circular No.-05 dated 27 February 2024 on the above-mentioned subject.

3. Section 15(4) of the Bank Company Act, 1991 empowers Bangladesh Bank to grant approval for the appointment or reappointment of the Managing Director or Chief Executive Officer of any Bank-Corporation other than Specialized Banks. To ensure better governance in bank management and to protect the interests of depositors, it is necessary to be informed about the candidate's strategy regarding the removal of the current bank's weak position and existing obstacles, and to enhance credit discipline, development, excellence, technology, innovation, depositor confidence, and customer service. Accordingly, necessary instructions have been provided in BRPD Circular No.-05/2024, including conducting interviews to evaluate the eligibility and suitability of the nominated person(s) in Clause 10 and other clauses.

4. Now, in accordance with the said circular, a four-member committee as follows has been formed to conduct interviews to verify the qualifications, suitability, commitment to duty, experience, age, and leadership qualities of the person(s) nominated by the bank as Managing Director or Chief Executive Officer:

"Evaluation Committee on Appointment/Reappointment to the Post of Managing Director or Chief Executive Officer"

1. Deputy Governor (in charge of Banking Regulation and Policy Department) - Chairman

2. Executive Director (in charge of Banking Regulation and Policy Department) - Member

3. Executive Director (in charge of Department of Offsite Supervision) - Member

4. Director (Banking Regulation and Policy Department, Division-2) - Member and Member Secretary

5. The scope of the said committee is as follows: (1) To send letters to the Chairman of the bank requesting the candidate(s) to appear personally on the date, time, and place fixed by the committee, along with necessary documents as specified in Clause 10 of BRPD Circular No.-05/2024; (2) To determine the eligibility and suitability of the applicant(s) in accordance with the Bank Company Act, 1991, BRPD Circular No.-05/2024, and other circulars/letters issued by Bangladesh Bank; (3) To verify the applicant's commitment to duty, experience, competence, age, and leadership qualities; (4) To evaluate the competence of the nominated person(s) during their previous tenure if they have served as Managing Director/Chief Executive Officer before; (5) To evaluate the candidate's signed strategy document regarding how the nominated person will contribute to removing the current bank's weak position and existing obstacles, and enhancing credit discipline, development, excellence, technology, innovation, depositor confidence, and customer service; (6) To hear and decide in accordance with the provision of Clause 13(3) of BRPD Circular No.-05 dated 27 February 2024; (7) To submit a report containing recommendations regarding the appointment of the Managing Director/Chief Executive Officer by the committee.

6. Based on the negative recommendation of the said committee regarding the appointment of the Managing Director or Chief Executive Officer, Bangladesh Bank will grant approval for the appointment or reappointment;

7. If the committee does not consider the candidate's qualifications, suitability, commitment to duty, experience, and leadership qualities as negative and acceptable, Bangladesh Bank will inform the Chairman of the concerned bank by letter, recording the reasons for not granting approval for the appointment;

8. To inform the Board of Directors of the bank and to take necessary action, a self-contained paper on the subject of the circular must be presented in the next meeting of the Board of Directors immediately after the issuance of this circular. In addition, arrangements must be made to bring this circular to the notice of all employees of the bank.

9. These instructions are issued under the powers conferred by Sections 15, 15A, and 45 of the Bank Company Act, 1991. The instructions contained in this circular will come into force immediately.

Yours faithfully, (Md. Harun-Ar-Rashid) Director (BRPD) Phone-9530095