Bangladesh Bank (BB) has submitted comprehensive draft amendments to the government, demanding a legal overhaul to grant the central bank full autonomy and bring it in line with global best practices.
Governor Ahsan H Mansur argues the proposals, detailed in a Demi-Official letter to the Finance Adviser, are "long overdue" and essential to prevent future financial sector irregularities, which previous attempts failed to address due to a "lack of political and administrative will."
Key reforms focus on insulating the leadership and policy-making process from political interference. This includes establishing a three-member search committee for merit-based appointments of the Governor and Deputy Governors, and a Court of Inquiry (headed by a Supreme Court Appellate Justice) for examining the removal of top officials.
Additionally, the plan seeks to elevate the Governor’s status to that of a full cabinet minister and restructure the board by reducing government-appointed directors from three to one, while increasing independent experts from four to six.
The move is also critical for meeting conditions set under the IMF’s $5.5 billion loan programme.
Comment
