BB restricts age limit for top bankers to axe influences affecting banks’ financial health

Monirul Alam of DOT
Bangladesh Bank (BB) has restricted age limit to maximum 65 years for bankers serving at the top positions of Chief Executive Officers (CEOs), Managing Directors and Additional Managing Directors (AMDs) of private banking companies.
A circular has been served on private banks by the central bank on Monday last.
Seniors bankers said that the central bank’s move is aimed to curb influences affecting banks’ financial health by stopping repeated appointment of same person at the top positions. It also meant for widening scope for the career bankers, whose service at the top position may benefit a bank, before expiring job tenure.
From now onward, a banker expires 65 years of age could not be appointed to the permanent positions of CEOs, MD and AMDs of a private banking company. However, the board of a private banking company could appoint such bankers contractually as advisor.
“There were no such rules regarding age limit for the private banks before,” central bank spokesperson Serajul Islam said yesterday.
He said the central bank observed that same persons are being recruited by private banks repeatedly at the top positions that squeezed opportunities for next aspirants.
Talking to Our Time, Agrani Bank’s CEO and Managing Director Mohammad Shams-Ul Islam said that the central bank move will help private banks restoring good governance by restraining appointment of influentials.
He said frequent practice of re-appointment of same person as CEOs has long been causing abrupt impact on financial operation of banks.