Corporate Governance on

Banking Sector in
Bangladesh
Submitted By:
S.M. Munim
Management
Dhaka University
 Intro

• Corporate Governance deals with the interest of all stakeholders as well as

economic and societal growth of a nation
 Corporate Governance in Banking Sector

• Global Concern because of enhancing service

• Banking Sector serves Nerve Centre or brain in modern economy
• Banking as a financial sector has been unique and more important
• Banks maintain a contractual relationship with investors and shareholders
• Banks
 Overview of Corporate Governance in
Bangladesh

• Ownership control
• One-tier board/ Management board
• No or weak supervisory board
• Does not have any committee other than audit committee
 Banking Sector in Bangladesh

• After Independence started with 6 nationalized commercial bank

• In 1980 significant entrance of private banks
• Now, Banks are primarily two types- Scheduled Banks and Non-Scheduled
Banks
• The Bangladesh Bank Order 1972 authorized Bangladesh Bank as a Central
Bank
• Banking Companies Act 1991 guide the commercial banks
 World Bank complements on Governance in
Bangladesh 2013
• Bangladesh is one of the more successful developing countries in terms of
accelerating growth, making growth pro-poor and improving the indicators of social
progress
• Over the past 10 years, the country has also managed to make progress in
governance indicators; however global indicators suggest that improving governance
should remain a key priority for the full realization of development aspirations
• The World Bank’s Country Assistance Strategy (CAS) has identified governance as
the fourth pillar of priority and offers a range of support to improve the quality of
governance
 Recent Scandals in Banking Sector
• Oriental Bank 2015
• Hallmark 2016
• Hallmark-Sonali Bank 2017
• Credit Card Scam 2018
• Basic Bank 2019