State Bank Appointments Must Be Fair, Transparent

State-owned banks need capable leaders to overcome their longstanding weaknesses, but finding the right people begins with a fair selection process. A recent report in this newspaper about the possible appointment of executives from private commercial banks as managing directors (MDs) of six state-owned banks has raised concerns among senior officials who fear that their experience and years of service may be overlooked. Bangladesh Bank spokesperson and Executive Director Arif Hossain Khan has clarified that no decision has been made yet. However, the uncertainty itself highlights the need for a transparent policy that gives every qualified candidate a fair chance. We believe competence, not favouritism, must determine who leads these banks.

That does not mean the authorities should automatically favour internal candidates simply because they have served state-owned banks for years. Executives from private banks may bring fresh ideas and valuable experience, while existing officials have a better understanding of the institutions they already serve. Both groups, therefore, deserve equal consideration. What matters is not where a candidate comes from, but whether they have the integrity, leadership skills and professional record needed to run a bank effectively. A fair process must recognise merit wherever it is found.

Without such a process, the consequences could extend well beyond the appointment of six MDs. If experienced officials believe that years of hard work offer little prospect of advancement, their morale may decline, weakening their commitment and performance. Younger employees may also lose confidence in the prospect of building a career within the state banking sector. At the same time, bringing in executives from private banks will not, by itself, resolve the deeper problems these institutions face. Political interference, weak oversight and questionable decisions by boards have also contributed to corruption and defaulted loans. Unless these problems receive equal attention, changing the people at the top may achieve little lasting improvement.

The authorities must therefore address both the selection process and the institutional weaknesses that undermine these banks. They should establish clear criteria covering professional competence, integrity, leadership experience and past performance, and then apply them equally to internal and external candidates. If no internal applicant meets the required standards, the authorities should explain their decision rather than leave space for suspicion. Equally, they must strengthen oversight of bank boards and shield appointments and major decisions from political pressure. These measures would make recruitment more credible while reinforcing accountability across the banking sector.

We expect Bangladesh Bank and the relevant authorities to clarify their policy before proceeding with the appointments. Bringing in talent from private banks should remain an option, but qualified internal candidates must not be overlooked without proper evaluation. Nor should seniority alone guarantee promotion. Ultimately, state-owned banks need leaders who can restore public confidence, improve governance and protect depositors’ interests. That goal is best served by a system that puts competence before connections and gives every qualified candidate a genuine opportunity to lead.