The Presidents / Chief Executives
All Microfinance Banks

Dear Sirs/Madam,

 

Fit & Proper Criteria for Board Members and
President/Chief Executive of Microfinance Banks

The Boards of Directors of Microfinance Banks define and set vision and mission and overall goals and objectives to be achieved by the bank, ensure development of policies and risk management systems for different areas of operations and oversees implementation of/compliance with the policies. The President/Chief Executive leads the executive management to implement the Board’s plans. The Board Members and President/Chief Executive are also custodians of public savings deposited with the bank and as such should not only be persons of established integrity and track record, but should also have necessary capacity, qualification and experience to effectively undertake their respective responsibilities and functions in order to lead and steer the MFB as a socially conscious, pro poor and commercially viable financial institution.

State Bank of Pakistan has therefore, formulated “Fit & Proper Criteria” for the Board Members and President/Chief Executive of Microfinance banks, which prescribe the minimum qualification, experience and integrity standards etc. for the MFBs’ Board Members and President/Chief Executive. The criteria, annexed herewith, are being introduced as Prudential Regulations for Microfinance Banks-Regulation XXX-Fit & Proper Criteria for MFBs’ Board Members and President/Chief Executive Officer, and shall be effective with immediate effect. The Microfinance Banks already in operation shall regularize deviation, if any, in their Board mix within six months of the issuance of the criteria.