The Presidents / Chief Executives,
All Banks/DFIs
Dear
Sirs/Madam,
ESTABLISHMENT
OF SUBSIDIARIES BY BANKS/DFIs
Please
refer to BPD circular No. 7 of 2004 on the captioned subject.
2.
Clause (iii) of the above mentioned circular will be replaced
with the following;
“The Board of Directors of the subsidiary should be
completely independent and different from the Board of Directors
of the Bank/DFI. The Bank/DFI may nominate its employees
on the Board of Directors of the subsidiary up to 50% of
the total directors, and the remaining directors nominated
by the Bank/DFI should be independent individuals.”
3. Other instructions on the subject will, however,
remain unchanged.