The State Bank of Pakistan has told Boards of Directors of banks, DFIs and MFB that whenever they decide to remove Presidents, CEOs or other heads before the expiry of their term time, the central bank must be informed at least two months ahead of the implementation of such decisions.
These instructions have been issued by the SBP, while amending regulations of G-1 of prudential regulations for Corporate, Commercial Banking. SBP said that it has been decided that whenever the Boards of Directors/ relevant appointing/removing authority of a bank/DFI consider to remove Presidents/Chief Executive Officers/Country Heads/Country Managers before the expiration of his/her term of office through the defined statutory process, the SBP must invariably be informed at least two months ahead of the implementation of such decisions along with the reasons for the same.
However, if the Presidents/CEOs/Country Heads/Country Managers, wherever, decides to tender resignation before completion of their term of office, they must inform SBP at least two months before tendering resignation.
The Chairman of the Board of Directors/relevant removing authority of banks/DFIs would be responsible for submission of the requisite information to SBP. The same instructions have been issued to the MBFs by amending the revised prudential regulation for Microfinance Banks (MFBs), while other instructions on the subject shall, however, remain unchanged.
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