Bangladesh Bank has refused to approve the reappointment of Md Habibur Rahman as managing director of Standard Bank PLC, drawing a decisive line under weeks of turmoil, regulatory scrutiny and boardroom conflict at the private lender.
In an official letter dated 26 January, the central bank’s Banking Regulation and Policy Department (BRPD) informed the chairman of Standard Bank’s board that, following an overall review, approval for Rahman’s reappointment could not be granted.
According to Bangladesh Bank sources, Standard Bank had formally applied on 8 January seeking approval to reappoint Rahman as managing director. In response, the central bank stated in writing: “After overall review, approval could not be granted for the reappointment of Md Habibur Rahman as the managing director of your bank.”
The decision follows months of internal strife within Standard Bank, where the MD post became the centre of a prolonged power struggle inside the board. Rahman’s name had been linked to multiple allegations of irregularities and misconduct that surfaced during Bangladesh Bank inspections and in preliminary inquiries by the Anti-Corruption Commission (ACC).
Bangladesh bank had warned that Rahman could not be reappointed without a super majority of the board. That warning came amid deep divisions within the board, the controversial removal of an independent director without prior central bank approval and the postponement of a key board meeting after violence and intimidation targeting a director opposed to the reappointment
The central bank’s latest move effectively closes the door on Rahman’s return to the top post and shifts pressure onto Standard Bank’s board to stabilise governance at a time when its internal disputes have already drawn national attention.
In the same letter, Bangladesh Bank advised the bank to submit a proposal at the earliest opportunity for the appointment of a “suitable” new managing director. The decision, the letter noted, was taken with the approval of the competent authority.
