Bangladesh Bank has proposed a new rule limiting bank directors to a maximum of three consecutive months of leave per year, as part of the draft Bank Companies (Amendment) Ordinance 2025. The proposal aims to strengthen governance after reports that many directors remained absent for extended periods while retaining their positions. The draft has been published by the Financial Institutions Division of the Ministry of Finance for stakeholder feedback, and a meeting chaired by Secretary Nazma Mobarek was recently held to discuss it.

The draft also includes a proposal to restrict individuals, families, or institutions from holding significant shares in multiple banks simultaneously. Under the proposed rule, anyone holding 2% or more of a bank’s shares cannot hold 2% or more in another bank. The Association of Bankers, Bangladesh (ABB) has opposed this shareholding restriction, arguing that general shareholders do not directly influence bank policy decisions. However, Bangladesh Bank officials maintain that the measure is necessary to prevent excessive control by business groups that have previously harmed the sector.

If enacted, the new law would automatically cancel the position of any director absent from board meetings beyond the permitted period, ensuring stricter accountability in bank governance.