BRPD Circular Letter No. 56: Formation of Board and Responsibilities of Directors of a Bank-Company

Bangladesh Bank Chief Executive Office Motijheel, Dhaka-1000 Bangladesh Ref No.: BRPD/Regulatory Policy & Guidelines/02/01/56/2024/138 Banking Regulation and Policy Department 15 Poush 1431 BRPD Circular Letter No.-56 Date: ------------------- 30 December 2024 Managing Director/Chief Executive Officer All Scheduled Banks operating in Bangladesh Dear Sir, Regarding the policy on the formation of the Board of Directors of a Bank-Company and the responsibilities and duties of Directors. Reference is drawn to BRPD Circular No.-02 dated 11 February 2024 on the subject cited above. 02. Through Paragraph 12 of the aforementioned Circular, guidelines were provided regarding the convening of meetings of the Board of Directors and auxiliary committees, and the honorarium and other financial benefits due to Directors. Now, Paragraph 12.2(b) of the aforementioned Circular is hereby replaced as follows:

"(b) It is desirable to keep the meetings of the Board of Directors and other committees of the Bank-Company to the minimum number possible. However, regardless of how many meetings of the Board of Directors and other committees of the Bank-Company are held in any month, Directors shall be entitled to such honorarium for attending a combined total of 06 (six) meetings of the highest governing body and executive committee, 01 (one) meeting of the Audit Committee, and 01 (one) meeting of the Risk Management Committee per month;"

3. In addition, other guidelines contained in BRPD Circular No.-02 dated 11 February 2024 shall remain unchanged.
4. This directive is issued under the powers conferred by Section 45 of the Bank Company Act, 1991.

Yours faithfully,

(Md. Alauddin) Director (BRPD) Phone: 9530095