IslamicFinance.de

National Bank, City Bank and Premier Bank have failed to comply with the central bank's directive to bring down the number of directors from the same family to a maximum of two. The central bank last week asked four private banks to cut the number down in seven days. Only First Security Islami Bank complied with the directive within the deadline, according to Bangladesh Bank. The three other banks sought one to three more months to comply with the directive, but the regulator extended the deadline till October 30, a BB official said. National Bank has five directors from a family. City Bank has nine directors from two families. Four directors of Premier Bank come from one family.

The four private banks’ authorities have long been violating the bank company act, putting their family members on the board of directors. According to the bank company act, 2013, the banks’ board cannot comprise more than two members of a single family. But the four banks still continue their dominion over the board of directors with their family members at the helm. These are the National Bank, the Premier Bank, The City Bank and the First Security Islami Bank.