Bangladesh Bank (BB) has issued a directive to scheduled banks, instructing them to establish and activate Nomination and Remuneration Committees (NRC) in accordance with the Corporate Governance Code-2018. The purpose of these committees is to oversee and ensure corporate governance within the banking sector. The NRCs will be responsible for formulating policies related to the nomination and remuneration of board members and top executives, as well as evaluating their performance.
Each bank is required to establish an NRC comprising members with the necessary qualifications and experience outlined in the Corporate Governance Code-2018. The goal of this initiative is to improve accountability and governance within banks, thereby enhancing financial system stability. Banks must ratify their NRC guidelines at their respective boards and ensure compliance with corporate governance norms. They are also mandated to submit NRC formation details and operational plans to Bangladesh Bank by June 30, 2024.
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