BRPD Circular Letter No. 37: Appointment of director, contractual advisor and consultant for Bank-Company

Bangladesh Bank Chief Executive Office Motijheel, Dhaka-1000 Bangladesh Ref No.: BRPD-Circular-03 Banking Regulation and Policy Department 19 Bhadro 1430 BRPD Circular Letter No.-37 Date: ------------------- 03 September 2023

To, Chief Executive/Managing Director All Scheduled Banks Operating in Bangladesh

Dear Sir,

Regarding the rules and regulations for the appointment of directors, contractual advisors, and consultants of the bank.

Reference is invited to BRPD Circular Letter No.-27, dated 12 May 2021, on the subject cited above.

2. Through the aforementioned circular letter, guidelines were provided regarding the appointment of directors of the bank, including contractual advisors and consultants. Now, with the aim of harmonizing/similarizing the eligibility and suitability criteria for the appointment of directors of banks and financial institutions under the same monetary umbrella, paragraph 3.2 mentioned in the aforementioned circular letter concerning the appointment of directors of the bank is hereby replaced as follows:

"3.2. An individual shall not be eligible for appointment as a director of the same bank if five years have not elapsed since the cessation of regular or contractual service, or the expiration of the contract term."

3. In addition, other instructions mentioned in BRPD Circular Letter No.-27, dated 12 May 2021, shall remain unchanged.

4. These guidelines are issued under the powers conferred by Section 45 of the Bank Companies Act, 1991.

Yours faithfully,

(Md. Harun-Or-Rashid) Director (BRPD) Phone: 9530095