Dhaka: Bangladesh Bank (BB) on Wednesday issued a circular banning the removal or forced resignation of any chief executive officer (CEO) of a financial institution without prior permission.

If any board of a financial institution wants to terminate the contract, or remove, or asks to resign a CEO, it will have to serve a show-cause notice to the CEO giving him one month time explaining the reasons for such move and also send a copy of the notice to the BB, according to the circular, issued by the Financial Institutions and Bazar Department of the central bank.

Unless the BB approves, the board can not remove or ask to resign the CEO, said the circular.

The Bangladesh Bank had earlier issued a similar circular on 23 December last year for private banks as well.