Bangladesh Bank (BB) on Sunday issued new guidelines tightening the rules of appointing bank directors to ensure good governance in the banking sector.
The new regulations set a minimum age requirement of 30 years for individuals aspiring to take on the role, coupled with a prerequisite of at least 10 years of business experience following their 18th birthday.
Notably, these criteria were absent in the previous framework.
The guideline, sent to the managing directors and chief executive officers of all scheduled banks, will come into effect immediately, reads the circular.
The directive also specifies that individuals with a default history will be ineligible to serve as bank directors within five years of resolving their default status.
Moreover, the number of directors of a bank will be a maximum of 20, and independent directors will be three.
However, if there are less than 20 directors, there cannot be more than two independent directors. At the same time not more than three members from a single family can be directors, the guideline said.
