The government has introduced landmark structural changes to the executive recruitment process for state-owned financial institutions.
Under the newly issued ‘Policy on Nomination/Appointment/Promotion and Posting 2026’, the government will no longer directly appoint managing directors (MDs) or chief executive officers (CEOs) across the country's six state-owned commercial banks.
Instead, the government will nominate qualified candidates, while the final appointment will be executed by the respective bank’s board of directors following a No Objection Certificate (NOC) from Bangladesh Bank.
However, the government retains direct appointment authority for six specialized institutions—including Krishi Bank, Rajshahi Krishi Unnayan Bank (Rakub), Bangladesh House Building Finance Corporation (BHBFC), and the Investment Corporation of Bangladesh (ICB).
It also retains control over promotions, postings, and transfers for Deputy Managing Directors (DMDs) and General Managers (GMs) across all state-owned financial institutions.
Addressing the core changes, Financial Institutions Division Secretary Nazma Mobarek noted that the update reflects legal realities, as executive hiring contracts are legally finalized by bank boards rather than the ministry.
Furthermore, as part of administrative deregulation, only MD-related approval files will now be sent to the Prime Minister's Office.
Promotions for DMDs and GMs will now be approved directly by the finance minister.
Qualification criteria
To curb arbitrary appointments and elevate corporate governance, the 2026 policy sets strict mandatory eligibility standards:
- MD Qualifications: Candidates must hold a master's degree (preferably in Economics, Accounting, Finance, Banking, Management, or Business Administration), have no third-division academic results, and be aged between 45 and 65. Appointments are strictly contractual for a three-year term.
- 100-Point Evaluation System: For DMD and GM promotions, a standardized scoring metric has been introduced:
- 40 marks for Annual Confidential Reports (ACR)
- 15 marks for educational qualifications
- 15 marks for relevant work experience
- 10 marks for service records
- 10 marks for the board interview
- 5 marks for professional banking exams
- Performance Over Seniority: Length of service alone will no longer guarantee advancement. Evaluation metrics heavily weigh leadership skills, non-performing loan (NPL) recovery, profit growth, risk management, and experience in key operational divisions like audit, credit administration, and IT.
- Disqualifying Factors: Allegations of corruption, fraud, financial irregularities, regulatory penalties from Bangladesh Bank inspections, or failures regarding Anti-Money Laundering (AML) and Counter-Financing of Terrorism (CFT) protocols will serve as major grounds for withholding promotions.
