As
you are aware, the State Bank of Pakistan, for promoting good
corporate governance in the financial sector, has already
issued “Fit & Proper Test”(FPT) for the directors and
chief executive officers of banks/DFIs. To further enlarge
the scope of good governance it has now been decided that
banks/DFIs shall follow the guidelines contained in the “Fit
and Proper Test’ at Annexure I for appointment of key executives
particularly those having the following functional responsibilities:
a)
Chief Financial Officer/Head of Finance/Head of Accounts
b)
Head of Internal Audit
c)
Country Treasurer
d)
Head of Credit/ Risk Management
e)
Head of Operations
f)
Head of Compliance
g)
Head of Human Resource
2.
It may please be noted that no prior approval is required
from State Bank for aforementioned appointments and each bank/DFI
shall itself be responsible to ensure that FPT guidelines
have been followed in letter and spirit. The banks/DFIs shall
report only brief information of such appointments, as and
when made, as per format given at Annexure II to the Director
Banking Policy Department for information and record within
7 days from the date of joining of these executives.
3.
In case it is found at subsequent stage/during the
course of inspection that guidelines of FPT have not been
followed or the incumbent is not a fit and proper person,
strict punitive action will be taken under the relevant provisions
of Banking Companies Ordinance, in addition to directing the
banks/DFIs to dispense with the services of concerned officer
if recruited afresh; and in case of existing employee, the
same to be transferred from the post immediately.
4.
The banks/DFIs not meeting the Fit and Proper Test
in respect of their existing key executives may regularize
the position within 180 days from the date of issuance of
this circular. A compliance report may please be furnished
in this regard by October 15, 2003 positively. In the meantime,
the particulars of incumbents in the above mentioned positions
may please be furnished on the enclosed Annexure II within
30 days from the date of issue of this circular.
5.
Please acknowledge receipt.
Encl:
As above
Attachment Anex-1
Attachment Anex-2
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