Inside Financial Markets

NBP ordered to seek Permission from State Bank for key Appointments

The government has directed the National Bank of Pakistan (NBP) to seek prior approval from the State Bank of Pakistan for hiring, appointing, and reappointing of key Executives, Group Heads and Senior Executive vice Presidents (SEVPs) of NBP.

According to a document available with Daily Times, SBP has issued a letter to the NBP President which states “This will apply to the promotion and posting of bank officials to the level of key executives, group heads, SEVPs and renewal of the contracts of the above mentioned posts.”

The letter further stated the concerned official would not assume charge of the respective positions before SBP clearance in writing. The letter indicated that immediate compliance with the above instructions must be ensured. Any person who did not obey the instructions would be liable for disciplinary action under the Banking Companies Ordinance 1962.

SBP issued these instructions to NBP keeping in view the governance related issues being faced by NBP nowadays. It has been decided that apart from complying with the existing regulatory instructions, NBP is hereby required to seek prior approval of the SBP while hiring, appointing, and reappointing of key executives, group heads and SEVPs of NBP.

The second point of the letter stated that NBP should conduct a detailed assessment of incumbents’ suitability to take up their responsibilities in a strategically important and complex institution and furnish the FPT documents along with undertaking its specific recommendations to SBP for clearance.

According to sources, the Senate Standing committees on Finance in today’s meeting in Karachi will deliberate on new recruitment and promotion policy of the NBP because the high ups of NBP are trying to save their colleagues who are involved in different frauds including more than Rs 18 billion National Bank Bangladesh branch scam. Sources said that many high officials of NBP including Governor State Bank of Pakistan are also involved in this scam and NAB is investigating this issue. NBP officials will brief the Standing Committee about the new recruitment and promotion policy of the NBP.

Baqar Hussain

A Wannabe CFO, just had stepped in the corporate sector, willing to explore every aspect here and learn as mush as i can, awareness for those who dont, get the info where ever possible and stay up to date always.

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Inside Financial Markets was a joint publication of Pakistan Stock Exchange (PSX)and Society of Technical Analysts Pakistan (STAP)