Bangladesh bank reform draft would reduce family board seats

Bangladesh Bank has submitted a draft legal amendment that would limit family representation on private bank boards to two members, down from three, The Daily Star reported Oct. 26.

The proposal would also cut directors’ maximum consecutive tenure from 12 years to six and require a three-year break before reappointment. It was sent to the Financial Institutions Division last week and has not become law.

Boards could retain up to 20 directors, including five independent directors. That would increase independent representation from two seats but soften an earlier proposal for smaller boards with independent majorities.

Cabinet members, lawmakers, and local government representatives would be barred from serving as bank directors. A senior finance ministry official said an interministerial meeting would review the draft before cabinet consideration. Bank owners have opposed tighter family and tenure limits.