Regulatory Alerts2009-05-12
Added · Updated
BRPD Circular No. 08: Restrictions on Responsibilities and Accountabilities of Board of Directors and CEOs of Private Banks
Private banks in Bangladesh are directed to adhere to the segregation of responsibilities outlined in BRPD Circular No. 16 dated July 24, 2003, specifically prohibiting Board members from interfering in routine affairs, loan sanctioning, or administrative activities. The circular mandates that CEOs ensure compliance with the Banking Companies Act, 1991 and other relevant laws, and require that memorandums presented to the Board or its committees include specific information regarding any such violations signed by the CEO. Additionally, banks must formulate policies for lending, risk management, human resources, and financial management, while restricting Board members from utilizing full-time office facilities or staff. This circular must be presented at the next meeting of the Board of Directors.
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