Written by The Banking Post
Bangladesh Bank Governor Dr. Ahsan H Mansur stated that the performance of the members in the restructured boards of 11 commercial banks under the banking sector reforms are being vigorously assessed.
Apart from their collective performance for salvaging the problem banks, the governor said, individual performance of each board member has also been evaluated by the regulator on a regular basis.
The regulator will also bring necessary changes if necessary based on their performance index, the central bank governor made the remark responding to a question at a press briefing on Monday (7 July).
The press conference was organized sharing the central bank’s ongoing plan over implementing Risk-Based Supervision (RBS) in banks that will be effective from January next year
The governor expressed his satisfaction on the performance of the restructured boards of Islami Bank and United Commercial Bank (UCB) as both banks are observed rebounding remarkably from severe liquidity crunch following guidance of the board members.
During the press conference, the Governor was asked whether the central bank would evaluate the performance of the boards of these 11 banks whose boards had been restructured. In response, the Governor said, “We have kept the 11 banks whose boards we restructured under constant review. Islami Bank, UCB – I have already said they are moving to a positive direction. And this has been proven. Today I saw that Islami Bank’s deposits have increased by about Tk 200 billion. This is a positive aspect.”
Ahsan H Mansur said, “Here we are emphasizing some other points as well. We have added new directors there, and we will continue to make changes. Just because we restructured the boards does not mean they will remain unchanged. We are assessing their performances. We will revive boards again if necessary, and restructure them anew if needed.”
