The government has relaxed the experience requirement for appointing managing directors (MDs) and chief executive officers (CEOs) of state-owned commercial banks, allowing officials without at least two years of experience as deputy managing directors (DMDs) to be considered on the basis of their professional qualifications, leadership ability and reputation.
The Financial Institutions Division of the Ministry of Finance issued the Policy on Nomination, Appointment, Promotion and Posting of Managing Directors, Deputy Managing Directors and General Managers of State-owned Commercial Banks, Specialised Banks and Financial Institutions, 2026 today (19 October), replacing the previous policy issued on 26 July.
Under the new policy, candidates for MD or CEO positions at state-owned commercial banks must have at least 20 years of experience as active employees of banks or financial institutions. They must also have served as an MD or CEO of a bank, or have at least two years of experience in the position immediately below the MD post.
However, the latter requirement may be relaxed for candidates with exceptional skills, professional qualifications, leadership ability and a strong reputation. This means qualified officials may be considered for MD positions even if they have not served as DMDs for at least two years.
Educational qualifications and professional skills
Candidates for MD positions must hold at least a postgraduate degree from a recognised university. A third division or class at any stage of their academic career will not be accepted.
They must also have a record of integrity, a good reputation and satisfactory performance throughout their careers.
The policy further requires candidates to have adequate knowledge of information technology security, cyber risk management, and measures to prevent money laundering and combat the financing of terrorism.
Appointment process
The new policy requires the selection committee's recommendations, along with candidates' intelligence reports and reports from the Anti-Corruption Commission (ACC), to be reviewed during the appointment process.
Candidates will be nominated on the basis of the selection committee's recommendations, subject to the prime minister's approval. The respective bank's board of directors will then make the contractual appointment with the consent of Bangladesh Bank.
The experience requirement for MD appointments at state-owned specialised banks and financial institutions, however, remains unchanged. Candidates for these positions must have at least 20 years of service experience from Grade 9 onwards, including at least two years as a DMD.
The relaxation, therefore, does not apply uniformly to all state-owned banks and financial institutions.
The policy sets a three-year term for contractual MD appointments. Reappointment may be considered, if necessary, based on recommendations from the government and the respective bank's board.
Changes in bank leadership
On 2 September, the government cancelled the contractual appointments of the MDs of Agrani Bank, Bangladesh Development Bank Limited (BDBL) and BASIC Bank. No replacements have been appointed to those positions since then.
On 19 October, the Financial Institutions Division also directed the cancellation of the remaining contractual terms of the MDs of Sonali, Janata and Rupali banks.
Changes to the position of MD at Bangladesh Krishi Bank are also being discussed.