DHAKA: Recently Bangladesh bank (BB) issued letters to boards of directors of new banks directing them to boost good governance in respective organizations.

Sources said Banking Regulation & Policy Department of BB sent the letters.

Earlier in May, central bank asked Chairmen and Chief executives of new banks to raise good governance. In consequence to failure to make any change in the banks, BB sent the letters.

SM Amzad Hossain, chairman of South Bangla Agriculture and Commerce Bank Limited (SBACB), said that BB ordered to boost internal audit and they have taken necessary steps.

They are following central bank order from the beginning, added Amzad.

Bank sources said the tension between board of directors and managerial authority of the banks became the main topic that concerned the BB.

BB in the latter said good governance could be established accelerating internal Audit of the bank. Efficient employees should be added to improve this.

Two independent directors should be included among the five directors.

The news banks made irregularity in every sector like management, appointment, collecting deposits, loan sanction.

Quoting a statement of BB report, sources said managing directors are leaving the banks as the board of directors doing unwanted activities. 

Managing directors of Midland Bank, Meghna Bank deposited their resign letters.

BDST: 1026 HRS, JUNE 8, 2014