The government is reconsidering several banking reform initiatives initially suggested by Bangladesh Bank during the interim administration. The latest draft legislation preserves the current rule permitting up to three family members to hold positions as directors within a single private bank, rejecting a proposal to lower this limit to two. Furthermore, the draft adopts a more lenient stance regarding directors who have defaulted on loans. The proposed changes also deviate from earlier recommendations to shorten the consecutive tenure of directors. Currently, the Bank Company Act allows individuals to serve for 12 years before requiring a three-year hiatus. The interim government had previously advocated for capping consecutive terms at six years to curb concentrated influence. These developments indicate a shift away from earlier efforts to diminish family dominance and improve governance standards within the nation's private banking sector.
Source : Prothom Alo
Photo : Prothom Alo
