4:34 pm - Wednesday October 18, 0484

Not more than 2 directors from same family, BB tells four banks    

The central bank yesterday asked four private banks to bring down the number of their directors coming from the same family to a maximum of two.

The banks — National, City, Premier and First Security Islami — will have to comply with the directive within seven days, according to a Bangladesh Bank letter sent to the banks, reports the Daily Star.

bbThe banks faced a similar notice in July but did not act on it. Law does not allow a bank to pick more than two directors from a family.

“We will take action against the banks if they fail to comply with the requirement,” a BB official said.

National Bank has five directors from a family, including its Chairman Zainul Haque Sikder.

City Bank has nine directors from two families — five from its Chairman Rubel Aziz’s family and four from Director Deen Mohammad’s family.

Four directors of Premier Bank come from the family of its Chairman HBM Iqbal, while First Security has three directors from the family of its Chairman Mohammad Saiful Alam.