The government has relaxed the experience requirements for appointing managing directors (MDs) or chief executive officers (CEOs) to six state-owned commercial banks in Bangladesh. Under the revised rules, candidates may be considered for the top positions without having served as a deputy managing director (DMD) for at least two years, provided they demonstrate exceptional professional expertise, leadership ability, relevant qualifications and a strong reputation.
However, the requirement for at least 20 years of work experience in banks or financial institutions remains unchanged.
The Financial Institutions Division of the Ministry of Finance issued a notification on Monday amending the existing appointment policy. The policy was last revised on 26 July, making this the third amendment introduced this year. The first revision was made on 18 January, while the original policy was issued in January 2023.
Relaxation for Candidates with Specialised Expertise
The policy issued on 26 July stipulated that candidates for the positions of MD or CEO at state-owned commercial banks, specialised banks and financial institutions must have at least two years of experience as a DMD.
The latest amendment introduces an exception to this requirement. Candidates with exceptional skills, professional qualifications, leadership capabilities and an established reputation may be considered for appointment even if they do not have the required two years of experience in the immediately preceding position of DMD.
The change could widen the pool of potential candidates by allowing experienced banking professionals to be considered for senior leadership positions without having completed the specified period in the DMD role.
Nevertheless, the relaxation does not remove the overall experience requirement. Candidates must still have at least 20 years of work experience in banks or financial institutions. The amendment specifically concerns the two-year experience requirement for the DMD position, rather than the broader professional experience criterion.
Academic Qualifications and Professional Competence
The revised policy also sets out the educational and professional qualifications required for appointment as an MD.
Candidates must hold at least a postgraduate degree from a recognised university. A third division or class at any stage of their academic career will not be accepted.
Applicants must also have a record of integrity, a good professional reputation and satisfactory performance throughout their careers. These requirements are intended to ensure that candidates possess the professional standing necessary to lead major financial institutions.
In addition, candidates must have adequate knowledge of information technology security, cyber risk management, anti-money laundering measures and the prevention of terrorist financing.
These areas have become increasingly important as banks expand digital services and face growing risks associated with cyber threats and financial crime. The revised policy therefore places emphasis not only on years of experience but also on the specialised knowledge required to manage modern banking operations.
Appointment Process to Include Background Checks
The appointment process will continue to involve scrutiny beyond professional qualifications and the recommendations of the selection committee.
Under the revised policy, candidates’ intelligence reports and reports from the Anti-Corruption Commission (ACC) must also be reviewed.
Based on the selection committee’s recommendations, a candidate will be nominated with the approval of the Prime Minister. The board of directors of the relevant bank will then make the contractual appointment after obtaining consent from Bangladesh Bank.
The tenure for an MD appointment will be three years. Reappointment may be considered where necessary, based on recommendations from the government and the board of directors of the respective bank.
The procedure retains several layers of review, including the assessment of professional suitability, integrity and reputation, as well as the required approvals from the relevant authorities.
Six Banks Covered by the Amendment
The revised experience requirements apply to the following six state-owned commercial banks:
- Sonali Bank
- Janata Bank
- Agrani Bank
- Rupali Bank
- BASIC Bank
- Bangladesh Development Bank PLC (BDBL)
The government has not changed the experience requirements for managing director appointments at state-owned specialised banks and financial institutions.
Candidates seeking MD positions at those institutions must still have at least two years of experience as a DMD, in addition to a minimum of 20 years of service experience from the ninth grade or above.
The amendment could expand the range of professionals eligible for consideration for top positions at the six commercial banks. However, the scope for relaxing the DMD experience requirement remains subject to the candidate’s qualifications, professional expertise, leadership capabilities and reputation.
The effectiveness of the revised policy will depend on how consistently these criteria are applied during the selection process, particularly in ensuring that senior appointments are based on professional competence, integrity and the ability to manage the banks’ operations.
