Regulatory Alerts2025-11-26
Added
BRPD Circular Letter No. 27: Appointment and Responsibilities of Managing Director/Chief Executive Officer of a bank-company
The document amends paragraph 2(g)(10) of BRPD Circular No. 05/2024 to update the experience requirements for appointing a Managing Director or Chief Executive Officer of a bank. The revised criteria require at least 20 years of active banking experience, plus either three years in the roles of Executive Director or Additional Managing Director, or 25 years of experience in Grade 2 or higher positions within the banking and financial sector regulatory authority. All other instructions in the original circular remain unchanged.
Bangladesh Bank Head Office Motijheel, Dhaka-1000 Bangladesh Ref No: BRPD-Reg. & Policy Banking Regulation and Policy Department 11 Agrahayan 1432 BRPD Circular Letter No. 27 Date: ------------------- 26 November 2025 Chairman, Board of Directors and Managing Director/Chief Executive Officer All Scheduled Banks operating in Bangladesh.
Dear Sir,
Regarding the policy on the appointment/engagement of the Managing Director or Chief Executive Officer of a bank-company and their responsibilities.
Reference is drawn to BRPD Circular No. 05, dated 27 February 2024, on the subject above.
- Through the aforementioned circular, guidelines were provided regarding the appointment/engagement of the Managing Director or Chief Executive Officer of a bank-company and their responsibilities. In paragraph 2(g)(10) of the said circular, it was instructed that for the appointment of the Chief Executive Officer, the concerned person must have at least 20 (twenty) years of active experience in the banking profession and at least 02 (two) years of experience in the post immediately preceding the Chief Executive Officer of the bank. Now, in order to provide for similarity/similarity in previous experience in the qualification, suitability, and experience criteria for the appointment of Managing Directors of bank-companies, paragraph 2(g)(10) of BRPD Circular No. 05/2024 is hereby replaced as follows:
"For the appointment of Managing Director or Chief Executive Officer, the concerned person must have at least 20 (twenty) years of active experience in the banking profession, along with at least 03 (three) years of experience in the post of Executive Director or Additional Managing Director of the bank, either singly or both; or must have experience of serving as an officer in Grade 2 or higher of the National Pay Scale with at least 25 years of experience in Grade 1 or equivalent and higher posts in the regulatory authority of the banking and financial sector."
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Apart from this, other instructions contained in BRPD Circular No. 05, dated 27 February 2024, shall remain unchanged.
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These instructions are issued under the powers conferred by Section 45 of the Bank Companies Act, 1991.
Yours faithfully,
(Md. Alauddin) Director (BRPD) Phone: 9530095