Bangladesh Bank Governor Ahsan H Mansur said on Thursday that a proposed amendment to the Bank Company Act could secure approval from the Advisory Council within this month, describing the move as vital to restoring discipline and governance in the banking sector.
Addressing reporters at an emergency press briefing, the Bangladesh Bank governor said the draft ordinance had already been forwarded to the concerned ministry and was now under government review. “We expect the government will take a decision within this month,” he said.
Once approved, the amendment would significantly alter the structure of bank boards. The proposal seeks to reduce the number of directors, cut family representation to two members from the existing five and limit family directors to two consecutive three-year terms.
Under the current law amended in 2023, a family director can remain on a bank board for up to 12 consecutive years.
The draft further proposes that at least half of board members be independent directors, to be chosen from a panel maintained by Bangladesh Bank. Acknowledging potential objections, Governor Mansur said some quarters might oppose the changes, but added that the measures were essential to ensure sound governance in the financial sector.
The emergency briefing was called to clarify Bangladesh Bank’s recent directive to five merged Islamic banks on profit distribution. Governor Mansur said depositors would not receive any profit for the calendar years 2024 and 2025, as the banks had incurred substantial losses, noting that the decision was consistent with Shariah principles.
Depositors, however, will receive profit up to the end of 2023, he said.
The banks involved—First Security Islami Bank, Social Islami Bank, Union Bank, Global Islami Bank and Export Import Bank of Bangladesh—are being consolidated into a new state-run entity, Sammilito Islami Bank.
In letters issued to the banks, Bangladesh Bank said deposit balances would be recalculated based on positions as of 28 December 2025, with no profit considered for the period from 1 January 2024 to that date.
