BB changes observers in AB Bank, Padma

FT ONLINE

The central bank has reshuffled its observers in two private commercial banks (PCBs) to further strengthen its supervision of the banks for improving their financial condition, officials said.

Under the latest measure, Lila Rashid, a general manager (GM) of the Bangladesh Bank (BB), has been shifted to the AB Bank Limited from the Padma Bank Limited.

She has replaced another GM - Abul Bashar - as an observer in the first generation PCB.

Besides, Shahin ul Islam, another GM of the central bank, has been made observer in the Padma Bank Limited.

The replacing of observers in the PCB boards has been done through separate letters, issued by the BB's Department of Offsite Supervision (DOS).

"We've re-arranged observers in the PCBs to strengthen the central bank's monitoring of the banks for improving their financial health," a BB senior official said on Friday.

He also said another observer in a public bank will be replaced within the next week.

"It's just a routine job," the central banker added.

Earlier, the central bank reshuffled its observers in three state-owned commercial banks (SoCBs) on the same ground.

The BB has so far appointed 13 senior officials in both public and private commercial banks as observers for improving the banks' financial health through strengthening the supervision of the central bank.

The observers are empowered to attend policy-making meetings of the banks concerned, including those of board of directors, executive committee and audit committee, to oversee their functions.