Bangladesh Bank (BB) has issued a set of guidelines for scheduled banks to formulate or update comprehensive human resource management policies, aiming to ensure good governance, stability and protection of depositors' interests in the banking sector.
The central bank issued the circular on Monday, asking the managing directors or chief executive officers of all scheduled banks operating in Bangladesh to take necessary measures in line with the guidelines, reports BSS.
Under the new instructions, banks will have to incorporate specific policies covering recruitment and employment of permanent and temporary staff, probation and confirmation, training and capacity development, salaries and allowances, employee loans and advances, performance evaluation, seniority, promotion and demotion, posting and transfer, and succession planning for top executives and C-suite officials.
The policies will also cover termination of employment, resignation, retirement and reappointment, leave and workplace absence, code of conduct, disciplinary matters, conflict-of-interest management, confidentiality provisions, whistleblower policy and restrictions on employees engaging in private business or other professions.
The guidelines further require banks to establish procedures for handling employee complaints and grievances, disciplinary actions, appeals and reviews
in cases of misconduct or offences, as well as policies to ensure diversity, an inclusive workplace and prevention of workplace harassment.
According to the circular, newly formulated or updated HR management policies incorporating these issues must be approved by the respective bank's board of directors by March 31, 2027.
The central bank also issued immediate instructions regarding recruitment and confirmation of employees to promote greater discipline, transparency and public confidence in the banking sector.
For entry-level positions where prior experience is not required, banks must publish recruitment notices on their websites/job sites and in at least two national daily newspapers to ensure transparency and equal opportunity for applicants.
Such entry-level positions include management trainee officer, senior officer, probationary officer or equivalent posts, as well as trainee assistant officer, junior officer, trainee cash officer, junior cash officer, cash officer or equivalent positions.
Recruitment for entry-level positions must involve an objective and competitive selection process, including written examinations and oral tests, whether the assessment is conducted physically or online, the circular said.
For recruitment to higher-level positions from other institutions, banks will also have to follow a competitive recruitment process, including at least an oral examination.
The Bangladesh Bank has also instructed banks to verify the highest educational qualification certificates of newly recruited employees within one year of their joining. For employees recruited before issuance of the circular, such verification must be completed by March 31, 2027.
For recruitment to higher-level posts from other institutions, banks will not be required to conduct separate verification of educational certificates if the previous employer certifies that the certificates had already been verified, subject to the conditions specified in the circular.
The circular also requires banks to preserve verified educational and professional qualification certificates in employees' personal records, particularly where such qualifications are used for promotion or other financial and non-financial benefits.
For contractual employees, except consultants and advisers, educational qualification certificates must also be verified following the prescribed procedures.
If any employee's educational certificate is subsequently found to be fake, the bank must take appropriate administrative action against the employee and record the relevant information in its Corporate Memory Management System (CMMS), in accordance with an earlier Bangladesh Bank directive.
The circular was issued under the authority vested in Bangladesh Bank by Section 45 of the Bank-Company Act, 1991.
