BPD Circular No.13 of 2004

All Banks/DFIs

Dear Sirs,

FIT AND PROPER TEST FOR APPOINTMENT OF PRESIDENTS/CHIEF EXECUTIVES AND BOARD OF DIRECTORS

Please refer to BPD Circular No. 35 dated 30th November, 2002 along with other instructions issued from time to time on the captioned subject.

1. The implementation of the contents of this circular during the last 18 months has revealed the need for some modifications and its consolidation with the various circular letters and instructions issued from time to time on this subject in the past. In order to provide an updated set of instructions, the existing circular and circular letters have been substituted and consolidated and the revised criteria of “Fit and Proper Test” are enclosed at Annexure-I.
2. While applying to SBP for obtaining prior clearance in terms of BPRD Circular No. 12 dated 2nd June, 2000, the Banks/DFIs shall ensure that guidelines now given under the revised “Fit & Proper Test” have been complied with. In addition to submission of requisite information about appointment of proposed President/Chief Executive and Directors of Board, information in a simple proforma (enclosed at Annexure-II) shall also be provided by the banks/DFIs.
3. Accordingly, BPD Circular Letter No. 15 dated 29th June, 2002, BPD Circular No. 35 dated 30th November, 2002 & BPD Circular Letter No. 10 dated 18th March, 2003 shall now stand superceded
4. Please acknowledge receipt.