Regulatory Alerts2013-10-27
Added · Updated
BRPD Circular No. 11: Formation and Responsibilities of Board of Directors of a Bank-Company
This circular mandates that banking companies in Bangladesh obtain prior approval from Bangladesh Bank for the appointment, dismissal, or removal of directors, requiring the submission of specific personal and credit information. It establishes strict eligibility criteria, including a limit of two family members on the board, and outlines procedures for vacation of office, including a one-year ban for directors who default on loans. The document assigns the board comprehensive responsibilities for strategic planning, credit risk management, internal controls, and human resources, while prohibiting interference in administrative affairs. It further restricts banks to forming only three specific committees—an executive, an audit, and a risk management committee—with defined membership limits, term lengths, and meeting frequencies.
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