Bangladesh Bank on Thursday eased the rules for chairmans of banks to hold directorship in subsidiaries abroad.
The central bank in May last year barred chairmans and board members of banks from holding the position of directors in boards or governing bodies of the subsidiaries or foundations established by the banks.
In its circular on Thursday, the central bank said chairmans of boards of banks would be able to become directors at the board of the subsidiaries such as exchange houses, money transfer operators or finance companies abroad.
The Bangladesh Bank said the decision was taken to avoid losses by banks and ensure proper utilization of the funds allocated for their subsidiaries.
The central bank directive said amid the ongoing Russia-Ukraine war, the collection of remittance and operation of subsidiaries abroad are facing more challenges than before.
Lack of proper experience and expertise in dealing with management risks can create the possibility of losses for banks and negatively affect their image, it added.