Bangladesh Bank's decision
Bangladesh Bank announced recently that it wants to appoint two depositors as directors in each private bank to 'protect the depositors' interest'. But why are the foreign banks exempted from this?
One can argue that foreign banks are incorporated in different countries and hence are not governed by Bangladesh Bank rules. But don't foreign banks take deposits from Bangladeshi clients?
Who is protecting the depositors' interest in this case?
If foreign banks don't want depositors as directors, they should cease to take deposits from the public and instead rely on the cash flow from local banks. I don't see why different sets of rules have to apply to banks, when it is the depositors' interest which is at stake.
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