Challenge is to retain depositor confidence

Bank board reshuffle process started

Zarif Mahmud: Since the fall of the government, the seized banks have been in chaos. Apart from this, there is instability in private banks which have politically influential party people on their boards. Apart from this, unrest has also arisen among the board members and executives appointed by political influence in government banks.
Due to these reasons, many banks have already started the process of changing the board. To complete this process, the normal speed of the overall activities of the bank is being disrupted due to the attempts of taking over and taking over.
In this situation, maintaining the confidence of the banks among the depositors has now become the main challenge.
Meanwhile, old employees of Islami Bank took a position in front of the head office in Dilkusha of the capital to free Islami Bank from the grip of S Alam Group.
Since morning, they have raised slogans in front of the bank. As a result, none of the officers appointed after 2017 could enter. At the same time, the old workers demanded justice for Sunday’s shooting incident.
Meanwhile, besides the newly appointed bankers, Bank’s Managing Director (MD) Munirul Mawla, (See Page-2)
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Additional Managing Director JQM Habibullah and Altaf Hussain, Deputy Managing Director Akiz Uddin, Miftah Uddin and other officials known as S Alamalso did not go to the bank.
Meanwhile, chaos has started in Bangladesh Commerce Bank, which was taken over by S Alam Group during the Awami League government, from Monday. Public sector banks own 51 percent of Commerce Bank; The rest of the shares were in the hands of Abdul Mannan, the former secretary general of the alternative movement. In 2017, S Alam Group took control of the bank by buying the shares of Abdul Mannan. MD is not going to the bank after the fall of the government. When the Deputy Managing Director (DMD) of the bank went to the office, he was surrounded by officers and employees. Some of them demanded that the job be made permanent, while others raised various slogans demanding promotion. At this time, some demanded to free Bangkok from the grip of S Alam Group. At one-point DMD was forced to resign. At that time, the army came and rescued him from the bank. The army is stationed in front of the bank.
Apart from this, instability is also going on in Social Bank, UCB Bank, IFIC Bank. Dismissed officers protested in front of IFIC Bank on Monday as well.
In such a situation, the leading economists and bankers of the country said that it is necessary for the Central Bank to intervene now to control the overall situation of the banks and retain the trust of the depositors. If not, the condition of the banks will deteriorate. The confidence of depositors can be torn.
Meanwhile, a source of the central bank said that overall, the banking sector is still stable. The chaos going on in some banks is a matter of law and order. They have spoken to the concerned authorities in this regard. Banks are now being given special security. The central bank will investigate any violation of the law in the board of directors or shareholding of the bank. If irregularities are found in the investigation, action will be taken. The appointment is looked after by the concerned bank. In this case, action will be taken even if there is any irregularity.
According to sources, there is a change in the board of banks during the tenure of all governments when there is a political change. But this time there is chaos. That never happened before. As the reason for this, the people concerned said that several banks were occupied during the outgoing Awami League government. The depositors of those banks have been looted in the name of loan. There is more volatility in those banks now.
Major shareholders in most private banks include people from all walks of life. Because of this, when the party is in power, the people of that party sit in the council. They run the bank in coordination with the government. Earlier governments changed every 5 years. That is why there has been a change in party people in the board. Because the outgoing Awami League government was in power for 16 consecutive years, people from that party are on the board of the bank. Some of these good banks were captured and looted. Due to this, the whole situation has turned into a protest. MD, DMD are not working in many banks now. Meanwhile, some banks have taken initiative to appoint new managers. The process of appointing pro-BNP directors has started by removing pro-Awami League directors.
In this context, M Nurul Amin, the former president of Association of Bankers Bangladesh (ABB), an organization of prominent bankers and chief executives of banks, said that the bank cannot exist even for a moment without the MD. He has to be present physically or on mobile phone or online. If not, someone has to be responsible.
He also said that such instability has never happened before in the banking sector. If these continue for a long time, the trust of the depositors in the bank will be lost. This situation should end soon.
According to the sources, according to the Bank Company Act, if there is no MD in a bank, someone should be given the responsibility. He can run for a maximum of three months. If the MD is not appointed, the central bank may appoint an administrator or extend the appointment of the MD. In the case of the Board, if a director is abroad for three consecutive months or is unable to attend for any reason, he may appoint an alternate director. If he is not present for more than this time, his post will become vacant. According to the provisions of the central bank, a director can stay on the board of the bank for 9 consecutive years. After that, you can stay for nine consecutive years with a break of three years. Many managers are not getting this opportunity in the existing situation. Related sources said that if the law and order situation normalizes, initiatives will be taken to change the board through the board meeting of the banks.