The interim government on Sunday decided to set up a search committee to appoint a new governor and several deputies for the Bangladesh Bank as changes are imminent at the state-owned financial institution, officials said.
It was decided to set up the search committee at the Financial Institutions Department of the Ministry of Finance after Bangladesh Bank Governor Abdur Rauf Talukder was relieved of his post on the same day.
The search committee is likely to include former Comptroller and Auditor General Muslim Chowdhury and Policy Research Institute Executive Director Ahsan H. Mansur, according to officials at the Department of Financial Institutions.
Deputy Central Bank Governor Nurun Nahar has been asked to take over the duties of acting governor, according to a circular issued by the Financial Institutions Department on the same day.
In addition, the Bank’s other Deputy Governors were also asked to continue their routine work until the new Governor is appointed.
All deputy governors have resigned after a group of disgruntled officials staged a demonstration against the central bank’s top leadership on Wednesday, a day after Prime Minister Sheikh Hasina resigned and fled to India amid a mass uprising that left more than 300 people dead, and the interim government was formed.
The protesting central bank employees demanded the resignation of Governor Abdur Rauf and all deputy governors, especially those who were close allies of the Awami League-led government.
On August 9, Abdur Rouf Talukder submitted his resignation as bank governor.
The following day, Shibli Rubayat Ul Islam, chairman of the Bangladesh Securities and Exchange Commission, also resigned.
Officials of the Financial Institutions Department said changes in state-run banks and financial institutions were imminent after Finance and Planning Advisor Salehuddin Ahmed issued instructions to the department’s secretary on the same day.
The Financial Institutions Division appoints directors and officers for over three dozen state-owned financial enterprises, including banks, non-bank financial institutions, insurance companies, microcredit providers and stockbrokers.
The blame for numerous loan thefts and embezzlement of public funds is largely attributed to the political decision to appoint the directors of state financial institutions based on political considerations over the past decade and a half.
In addition, the alleged hostile takeover of private banks by vested interests under indirect patronage of the recent political regime has left the banking sector vulnerable to incidents.
On Sunday, gunfire broke out at the headquarters of Islami Bank Bangladesh Limited in Dilkhusa district between two groups fighting for control of the bank.
The financial and planning consultant warned on Sunday that strict action would be taken against those involved in the dismissal at Islami Bank.
Speaking to reporters in his secretarial office on Sunday morning, the financial adviser said he had already learned about the shooting incident.
He also told reporters that the biggest challenge for the interim government is to restore the Bangladesh Bank to full functionality.
He said all functions, including the payment system, would now run according to business rules.
