Bank chairmen can be subsidiary directors till June 2023

Bank chairmen along with the heads of executive, audit and risk management committees who hold directorships of associated subsidiaries or foundations will be able to continue to serve in the latter role till June next year, said Bangladesh Bank yesterday. 

Last month, the central bank had instructed persons who are now in such directorship roles to resign or get exempted by June 30 this year.

But banks will face financial losses if the resignations or exemptions come about within a short period of time, which would subsequently pose a risk, says a central bank circular.

Banks informed the central bank that it would be difficult to run the subsidiaries and foundations due to a lack of skilled manpower.

Against this backdrop, banks have been granted a deadline extension until June next year so that they can prepare efficient successors to run the subsidiaries and foundations.