Proposed BAFIA to deregulate existing term limit on Chairman & BoD members of BFIs
As per the current regulatory requirement from the Nepal Rastra Bank (NRB) Chairman, Directors, and CEO of BFIs cannot hold the same position for more than two tenure. The tenure of chairman is of four years.
We can expect many new faces in the post of Chairman due to the completion of the tenure of existing chairman.
The new chairman has been elected in Laxmi Bank, Century Commercial Bank, Mega Bank, Kumari Bank and Fewa Bikas Bank.
The Bank and Financial Institution Act (Bafia) being proposed in the legislature parliament has removed the current regulatory requirement on the term limit. If Bafia will be passed through parliament in current form, then the term limit on directors and various management roles will be abolished. The member of parliaments who are also the directly involved in the Banking sector were able to make changes to the proposed Bafia to favor promoters of the Bank and Financial Institutions.
The parliament is yet to make any decisions regarding this so it is difficult to say anything about it now said Trilochan Pangeni, Spokesperson of Nepal Rastra Bank.
