20yrs of experience must to become NBFI CEO  

From now on, one aspiring to be chief executive officer at a non-bank financial institution (NBFI) has to have at least 20 years of working experience – instead of the earlier 15 years – at financial institutions including banks.  

In this case, the requirement of having at least two years of experience as a chief executive or its immediate subordinate position at a commercial bank or financial institution has been kept unchanged.

In addition, general managers of commercial banks, senior executive vice presidents or their senior officials can also be appointed as CEOs at those NBFIs whose balance sheet size is less than Tk1,000 crore.

However, they must have at least five years of experience as a branch manager and at least 20 years of experience as an active officer of a bank. There was no such opportunity in the previous policy.

The Department of Financial Institutions and Markets of the Bangladesh Bank in a circular on Monday announced the changes in the CEO appointing policy.

A senior official at the central bank told The Business Standard that under the previous policy, only CEOs or deputy managing directors (DMDs) of banks and NBFIs could apply for the post of CEO of NBFIs. 

"In our country, such persons are not in large numbers. As a result, we often had to struggle to find the right person for the job," he added.

The officer said that now that the policy has been amended, commercial bank managers or senior executive vice presidents can apply for the post. 

"Those who have worked in these positions have experience in handling many large systems, such as large loans. Financial institutions are smaller in size and transactions than banks. Therefore, the policy has been amended to include these officers as capable of managing these institutions efficiently," he added.