Bangladesh Central Bank Directs Banks to Refrain from Anti-Discipline Activities
In response to ongoing protests by officers and employees, the Bangladesh Bank, the country’s central bank, has issued an instruction urging banks to abstain from any anti-discipline activities. This directive comes as a measure to maintain stability and public confidence in the banking sector.
Background:
Recent reports suggest that some banks have witnessed unrest among shareholders, current and former officers, and employees. These individuals have engaged in activities that disrupt normal operations and transactions, raising concerns about the stability of the banking system.
Central Bank Intervention:
In light of this situation, the Bangladesh Bank has invoked Section 57(1) of the Bank-Company Act, 1991, which compels individuals to refrain from actions that undermine public confidence in banks. Engaging in such behavior is penalized under Section 57(2) of the same act.
The central bank has instructed banks to:
Make all stakeholders aware of the directive to abstain from anti-discipline activities.
Ensure that their employees and officials adhere to this directive.
Consequences of Disruption:
The central bank emphasizes that these disruptive activities are unacceptable as they undermine public confidence in the banking sector, which plays a crucial role in the country’s economy.