BB circular on appointing CEOs sparks debates

Bangladesh Bank (BB) has sparked debates on a circular issued on 26 November 2025 regarding the appointment of Managing Directors and Chief Executive Officers (CEOs) in scheduled banks. The circular states that officials from the central bank or any other regulatory authorities can become MD or CEO in banks if they have at least 20 years of working experience with second grade salaries. Bangladesh Bank's Banking Regulations and Policy Department (BRPD) issued the circular signed by BRPD Director Md. Alauddin.

However, financial scholars have stated that this circular is most likely to cause a clash of interests between regulators and subordinate institutions. Professor Shahidul Islam Jahid, Department of Banking and Insurance in Dhaka University has made similar observations too. The above circular from the central bank empowers officials belonging to Bangladesh Securities and Exchange Commission (BSEC) and Bangladesh Insurance Development and Regulatory Authority (IDRA) to become top executives in commercial banks. There are even examples of retired BB officials being appointed to the highest posts in scheduled banks which challenge good governance and accountability in the country's banking system, according to economists and financial experts.

People who had no substantial experience in retail banking, managing bank branches, running loan recovery departments also were selected  for the posts of Managing Directors and CEOs during the immediate past regime. Controversies have glared up that the circular issued by Bangladesh Bank on 26 November 2025 looks very similar to the disorder and anarchy which spoiled the country's banking sector while banned outfit Awami League was in power from 2009 to 2024. 

The latest circular makes it mandatory to have 3 years of experience as Additional Managing Directors before getting promoted to MD positions.

 Prominent financial analysts find it totally unnecessary and irrelevant. Even worries have sprung up that by means of the BRPD directives circulated on 26 November 2025 agents of the overthrown fascists might get back in operating banks and thus banks are once again placed under threats of getting polluted like the Awami League ruling period.

Executive Director (ED) is the highest promoted post in the central bank which is facilitated with second grade salaries. In terms of the newest circular, from now on retired Executive Directors can become MD or CEOs in banks. Commercial banks generally pay BDT 10 lakh to 18 lakh to Managing Directors as monthly remunerations. Bangladesh Bank spokesman Arif Hossain Khan has commented that the latest BB circular will facilitate utilizing the experience and administrative expertise of central bank officials when they are picked for MD posts in commercial banks.

Professor Anu Muhammad said that restoring people's confidence on banks is the most vital job for regulators right at this moment. He called upon Bangladesh Bank to ensure integrity and professionalism in recruiting officials for top posts in scheduled banks. Professor Anu Muhammad stated that no move should be made to enable corrupt quarters to paralyze banks like it was done during the unseated regime's tenure for 16 years.

Dr. Khandaker Golam Moazzem, Research Director in Center for Policy Dialogue (CPD) said that most of the banks have been unable to recover defaulted loans from mega borrowers even after the staggering regime change in August 2024. He urged the central bank to attach importance to efficiency, honesty and professional qualities in picking up top functionaries for commercial banks.