To ensure good governance in financial institutions (NBFIs), Bangladesh Bank is looking at who will be the Managing Director (MD) this time. Said, no one can be MD without 20 years of experience. Must also have two years of experience in the previous position of MD. However, the size of the financial balance is less than one thousand crore, the company has been given some concessions in the appointment of MD. Bangladesh Bank issued this instruction in a circular today.
Prashant Kumar Haldar became the MD of Aviva Finance (formerly Reliance Finance) after only 10 years of service. He then seized and looted four other financial institutions. As a result, customers are not getting their money back due to major frauds in five financial institutions including Aviva. For this reason, the central bank has imposed these restrictions on the appointment of MDs of financial institutions.
In order to ensure good governance of financial institutions and to safeguard the interests of depositors, it is necessary to appoint a competent, experienced and suitable chief executive with transparency considering the overall situation, the central bank said in a statement. For this purpose, only those who have at least two years of experience in the previous position of CEO or CEO of a commercial bank or financial institution, who have at least 20 years of experience as an active officer in a bank or financial institution, can become MD.
For those financial institutions whose balance sheet size is not more than Rs. However, it takes 20 years of experience to be MD in these organizations. General managers of state-owned commercial banks or senior executive vice presidents (SEVPs) of private commercial banks can be MDs. However, the condition is that they should have at least five years of experience as a branch manager.