Now non-banks’ MDs need BB nod for foreign trips

In an effort to curb frequent foreign trips, Bangladesh Bank yesterday asked managing directors of non-bank financial institutions (NBFIs) to take its prior approval.

The permission must be taken 15 working days in advance of the travel date, according to a central bank notice issued yesterday.

The application will have to be endorsed by the respective board of directors.

The momentum of the operational works at NBFIs may be hampered if managing directors (MDs) stay abroad for long, be it official purposes or personal reasons.

"This will create financial losses for the NBFIs, which is not expected at all," said the notice.

The central bank advised the MDs to shun the foreign trips, which is avoidable.

The MDs will have to inform the central bank about designated officials who will take on the role of acting MDs during their absence.

A central bank official said the MDs of the NBFIs frequently went abroad which were not on official tasks, which did not bring about anything positive for the institutions.

The majority of the NBFIs now faced different crisis, including incurring net losses in recent years.

Against this backdrop, the new decision will help the NBFIs reduce their operational expenses.

The circular will come into effect immediately, said the central bank.

The central bank had earlier taken the same measure for the MDs of banks.