Bangladesh Bank has tightened rules on companies holding shares in banks, aiming to make bank ownership more transparent and protect depositors’ interests.
According to a circular issued on Thursday, a company cannot hold bank-company shares worth more than its net worth. If its existing holdings cross the limit, it must bring them down within six months.
The central bank also said a representative director nominated by a shareholder company must be the company’s managing director or director.
Such a nominee must maintain at least 2 per cent ownership in a publicly listed company or 20 per cent in another company during the entire period of serving as the representative director.
Banks will also have to seek Bangladesh Bank’s prior approval for appointing, reappointing or replacing such representative directors and submit documents proving the nominee’s ownership.
-MT