April 24, 2019 (MLN): A recent circular issued by the State Bank of Pakistan has specified certain changes to Section – C of Prudential Regulations G-1 regarding Management, as per which the Chairman/Board shall not appoint an `Advisor’ in any capacity.
Accordingly, the Central Bank in its notice advised all Banks/DFIs to ensure appropriate skill mix of the Board keeping in view the overall risk profile of the institution.
“All banks/DFIs are advised to ensure compliance within six months of the date of issuance of the circular letter. After which, the non-compliance shall attract punitive action under relevant provisions of the Banking Companies Ordinance, 1962” it added.
Copyright Mettis Link News