If a bank wants to appoint an independent director, they will have to be selected from a panel formed by the central bank, said Bangladesh Bank (BB) Governor Ahsan H Mansur on Monday.
However, if the bank wants to appoint a person outside of this panel, then an option might open but with a “fit and proper” test conducted by the central bank.
Even board members from a single family will be reduced, while at least 50% of the directors will be independently appointed.
The governor was making the announcement before the upcoming Bank Company Act amendment, at a press conference titled "Risk-Based Supervision" at Bangladesh Bank headquarters in the capital.
He further said: “We will form a panel from which the independent directors will be selected. If someone outside the panel is to be appointed, it must be a highly distinguished and qualified individual, and a proposal can be made with the Bangladesh Bank's approval. But if just anyone is proposed, the Bangladesh Bank will not grant approval.”
“However, if the bank wants to appoint a person of its choice as an independent director outside this panel, it can apply to Bangladesh Bank. Bangladesh Bank will conduct a 'fit and proper' test and add it to the panel. Then the bank can appoint him as a director,” he explained.
Banking supervision
Bangladesh Bank decided to make a major restructuring of its regulatory framework for bank supervision to enhance efficiency, strengthen oversight, and align with international best practices.
As part of this initiative, Bangladesh Bank will implement Risk-Based Supervision (RBS) across all scheduled banks starting from January 1, 2026, the central bank said in a statement.
Regarding the Enhanced Supervisory Process Cycle, it also stated that a standardized supervisory cycle has been introduced, covering risk assessment, planning, supervisory engagement, intervention, and follow-up communication.
This structured process will improve the consistency and effectiveness of regulatory actions.
Regarding RBS, the governor said: “Piloting activities are currently underway with 20 banks under the scope of 'Risk Based Supervision.' From June to 31 December 2025, the remaining 41 banks will also be brought under it. Then from January 1,2026 it will be implemented for all.”
No risk-based supervision will be effective unless the fundamentals of the political system change. However, self-reliance will be created in banks through legal amendments through RBS, said Mansur.
A total of 61 banks will be brought under supervision in the new system under 12 groups in the central bank. As a result, real-time information on financial risk is possible to monitor from a single umbrella in the central bank, he added.
The governor also informed that to facilitate a smooth transition to RBS, these restructuring initiatives were also communicated to the CEOs of all scheduled banks.
A meeting was conducted before the press meet with senior central bank management, concerned executive directors, and directors to discuss the restructuring process and the corresponding implementation timeline.
