Please
refer to the Regulation G-1 (A) of the Prudential Regulations
for Corporate/Commercial Banking as amended from time
to time on the above subject.
2.
The effective and sound corporate governance is critical
for successful functioning of banks/DFIs. In order to
further strengthen the regulatory framework on corporate
governance, it has been decided to amend the existing
FPT criteria for appointment of the members of Board of
Directors, Chief Executive Officer (CEO) and Key Executives
of a bank / DFI. Furthermore, the scope of FPT has been
enhanced to include sponsors & strategic investors
in addition to Directors, CEOs & Key Executives of
all banks/DFIs.
3.
The banks/DFIs shall ensure that in future, all fresh
appointments and/or renewals of the members of Board of
Directors, CEO and Key Executives are made strictly in
accordance with the enclosed FPT requirements. The above
instructions supersede the BPRD Circular No. 12 dated
2nd June, 2000, BPD Circular No. 11 dated 5th April, 2003
and BPD Circular No. 13 dated 17th May, 2004.
4.
Please
acknowledge receipt.
Encl:
As above