BB issues code of conduct for banks, NBFIs

Staff Correspondent | Published: 00:05, Nov 07,2017

 
 

A file photo shows Bangladesh Bank headquarters in Dhaka. BB on Monday issued a code of conduct for banks and non-bank financial institutions to ensure integrity and responsibility of banks and NBFIs. — New Age photo

Bangladesh Bank on Monday issued a code of conduct for banks and non-bank financial institutions to ensure integrity and responsibility of banks and NBFIs.
All scheduled banks and NBFIs must have to prepare their own code of conduct in line with the central bank-issued code of conduct and follow it from January next year.
According to the ‘Code of Conduct for Banks and Non-Bank Financial Institutions’, the ultimate objective of the set of rules is to ensure integrity, high ethical standards, due skill, care and diligence in all of business and allied activities of the institutions.
Protection of the interests of customers, owners, employees and stakeholders of the institutions is also another objective.
It said that employees, owners and other related people must act with integrity like in an honest, fair and legitimate manner along with the highest professional attitude.
Banks and NBFIs will have to maintain a pleasant working environment in their organisations in terms of presence of well-set and well-defined compensation package and performance-led job description for employees.
The institutions should identify their existing and potential users for ensuring standardized services and ethical business development.
Banks and NBFIs should preserve the lawful benefits and interests of their shareholders, should make best efforts to maximise company profit and manage ethically and properly.
The institutions will have to understand and honour the customer needs and serve them indifferently, promptly and honestly.
They should ensure complete secrecy of customers’ affairs at all times unless asked by any competent court or other lawful authorities, according to the set of rules.
All banking and other financial activities of banks and NBFIs must comply with the established legal, regulatory as well as social and community norms, customs and values, it said.
Environmental and climate protection are to be taken into accounts in all areas of lending, it added.
The set of rules said that banks and NBFIs should take reasonable care to keep secure their information from unauthorised disclosure and exchange.
The employees must avoid the conflict of interest and availing any kind of illegal benefit will be treated as deviation from the required standard of services.
Employees will also not engage themselves in any commercial activity. 

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