The New Nation - Internet Edition

BUSINESS REPORT

Bangladesh Bank has issued a regulation requiring the country's private commercial banks to appoint two directors from among depositors. The regulation meets Bank Companies Act requirements.

The Bangladesh Bank (BB), the country's central bank, on Wednesday issued a circular explaining the regulation and asked banks to implement the rule immediately, officials said.

Under the new rule, the bank's board of directors must submit proposed directors'names to the Bangladesh Bank for approval.

"The appointment will be effective after receiving approval from the central bank," the regulation said, adding that the BB, if necessary, can seek more names for appointment of the directors from the board of directors of the bank concerned.

"We have formulated the rule on the basis of stakeholders', including bankers', opinions," a BB senior official told The New Nation yesterday.

On May 29 2008, the Bangladesh Bank issued a public announcement seeking opinions from the public to finalize the rule.

The official said the new rule would help banks ensure better management and transparency.