Bank directors can stay on for 12 years

The Bank Company (Amendment) Bill 2023 was passed in the parliament today amid a huge outcry and a walkout by the main opposition party, Jatiya Party due to a last-minute contentious addition.

The last-minute addition to the bill was the increase in the bank directors' tenure from nine years to 12 years, a move that would tighten their grip on the financial institutions.

The version of the bill that was placed in the parliament by Finance Minister AHM Mustafa Kamal on June 8 did not seek to amend the tenure of the board members from nine to twelve years. Neither did the parliamentary standing committee on the finance ministry make any such suggestion.

The provision was included after the ruling party MP Ahsanul Huq Titu made the proposal. A pandemonium broke in the House as the opposition MPs started shouting against the provision without a microphone.

Political interference should be stopped in banks, said Jatiya Party MP Fakhrul Imam.

"Banks should be freed from the hands of vested quarters and looters," he said.

The directors are the masterminds behind bank looting, said another Jatiya Party MP Mujibul Haque.

"It seems that it has been brought on the recommendation of many bank managers who are working to convince the finance minister. We strongly oppose this proposal to make the director's term 12 years," he said.

Pointing to the donation of bank owners to the Prime Minister's Fund, another opposition MP Kazi Feroz Rashid said that they are only giving this money to the PM to publish large pictures on the first and last pages of newspapers.

"The law was brought to provide benefits to bank owners. They misuse people's money. When they catch a cold, they go to Singapore with bank money," he said, while sarcastically calling for bank directors' terms to be for life.

Private banks now dictate the Bangladesh Bank.

"They decide who will be the governor of Bangladesh Bank, who will be the deputy governor. The government has become hostage to the bankers," he added.

The government has brought this amendment to keep their favourite directors in the posts, said Pir Fazlur Rahman, another opposition MP.

Speaker Shirin Sharmin Chaudhury said Titu should be allowed to place the amendment proposal.

The amendment proposal was placed as per the rules of procedure of parliament, she said.

"No new clause has been added to the bill. Nor has any such new clause been added. It is not irrelevant," Chaudhury added.

Imam wanted to speak but she did not give him the microphone.

"This is my ruling. You have nothing more to say about this," she added, giving the floor to the finance minister.

The opposition MPs continued their objection, which prompted Chaudhury to interrupt Kamal to say: "We will not do anything beyond the rules."

But the protests continued.

At that time, the speaker gave the microphone to Rashid.

Addressing the finance minister, Rashid said: "Did you accept the life term extension that we talked about? One director will remain forever. Are you accepting that?

Haque also gave a similar statement. There was a deadlock in the parliament for some time.

Later, the Speaker gave the microphone to the finance minister again. But he did not speak. The Speaker then called for voting on the amendment proposal. The amended bill was passed by voice vote.

At this time, the JP MPs walked out of the House. There were 15 of them, according to Haque, secretary general of the Jatiya Party, who spoke with reporters after the walkout.

The bill mentioned that after completing 12 years in the position of director, he or she has to wait for three years to return to the post.

According to the proposed law, not more than three directors of a bank can be from the same family, down from four at present.

Besides, the draft law also proposed strict measures in terms of borrowing by board members from banks as submission of collateral was made mandatory for them.