Ensuring good governance in banks
Atiur Rahman suggests appointing independent directors as bank chairman
Former Bangladesh Bank (BB) governor Atiur Rahman has suggested appointing the independent directors of the board of directors of the banks as the chairman to ensure good governance in the private banks.
The economist said a major challenge at the moment is ensuring good governance in the financial sector. So, professionals should be appointed to the posts of independent directors.
Besides, he suggested encouraging the weak banks to unify and implement the new bank company law to prevent people from getting willful defaulters.
Atiur Rahman said this while attending an event organised by the Foreign Investors Chamber of Commerce and Industry (FICCI) in a hotel in the capital’s Gulshan on Wednesday.
Businesspersons from different sectors and representatives of developing partner countries and agencies were present at the event presided over by FICCI president and Unilever Bangladesh managing director Javed Akhter.
At the event, Atiur Rahman presented an article titled ‘Bangladesh on the path of trillion dollar economy: Opportunities and Challenges.’
The economist said a major challenge at the moment is ensuring good governance in the financial sector. So, professionals should be appointed to the posts of independent directors
He said it is the depositors who are the actual owners of banks, not the people recognised as the bank owners. Therefore, if the independent directors are made the bank chairman, then they will represent the actual owners of the banks.
He said Bangladesh saw incredible development in the last 50 years. If the GDP growth rate remains at 5 per cent, Bangladesh's economy will be a trillion-dollar economy.
However, there are several challenges to meet that goal, including inflation, lack of financial accounts and decline in the investment.
A number of initiatives are required to solve the problems, the former BB governor added.
Atiur Rahman further said the first task will be stabilising the transaction rate. It will reduce inflation and increase foreign investments.
TIM Nurul Kabir, CEO of the FICCI, moderated the programme. Several local and international investors were present at the event.