Qualification criteria for RBB CEO upgraded
KATHMANDU, JUN 21 -
The Parliament’s Finance and Labour Committee on Monday directed Rastriya Banijya Bank (RBB) to upgrade the qualification criteria for the chief executive officer, terming the existing criteria ‘inadequate’.
RBB had sought an expression of interest (EoI) from potential candidates for its top executive post on June 14. As per the EoI, the minimum academic qualification for the candidate is a Master’s Degree in Business Administration/ Commerce/Banking/Economics or chartered accountancy.
Other criteria include a two-year experience as CEO in commercial banks or a five-year experience in any national level bank or financial institution or similar fiduciary financial institutions or foreign banks/financial institutions at least as a department head not less than 10th level officer or senior manager. The committee said these criteria are inadequate as appointing a less qualified CEO in the country’s largest bank would be risky. “We decided in favour of upgrading the qualification criteria as a less qualified CEO may not handle the country’s largest bank whose health is still not sound,” said Hari Roka, a member of the committee.
The committee directed RBB to retain the criteria mentioned in the EoI that was sought earlier as part of the financial sector reform programme. RBB had called the EoI as per the criteria set by the Nepal Rastra Bank a few months ago. Fed up by the failure to appoint CEO at Nepal Bank Limited (NBL) for five consecutive times, the central bank lowered the qualification criteria every time so as to attract more candidates. As the central bank failed to appoint a CEO at NBL, it had decided to allow the bank management to appoint the CEO.
As it will take a long time to appoint CEO with the upgraded criteria, the committee has also decided to extend the application deadline. The panel has also suggested removing central bank officials from heading the CEO selection committee of RBB, terming it the matter of conflict of interest. Currently, NRB deputy governor Maha Prasad Adhikari heads the selection committee.
“The NRB should not be responsible for the appointment of CEO at any bank because the central bank will be in an awkward position if action should be taken against the CEO it has appointed,” said Roka. “We have also suggested that the selection committee be reconstituated and should be headed by at least the finance secretary or other secretaries.”
Source: Kantipur
The Parliament’s Finance and Labour Committee on Monday directed Rastriya Banijya Bank (RBB) to upgrade the qualification criteria for the chief executive officer, terming the existing criteria ‘inadequate’.
RBB had sought an expression of interest (EoI) from potential candidates for its top executive post on June 14. As per the EoI, the minimum academic qualification for the candidate is a Master’s Degree in Business Administration/ Commerce/Banking/Economics or chartered accountancy.
Other criteria include a two-year experience as CEO in commercial banks or a five-year experience in any national level bank or financial institution or similar fiduciary financial institutions or foreign banks/financial institutions at least as a department head not less than 10th level officer or senior manager. The committee said these criteria are inadequate as appointing a less qualified CEO in the country’s largest bank would be risky. “We decided in favour of upgrading the qualification criteria as a less qualified CEO may not handle the country’s largest bank whose health is still not sound,” said Hari Roka, a member of the committee.
The committee directed RBB to retain the criteria mentioned in the EoI that was sought earlier as part of the financial sector reform programme. RBB had called the EoI as per the criteria set by the Nepal Rastra Bank a few months ago. Fed up by the failure to appoint CEO at Nepal Bank Limited (NBL) for five consecutive times, the central bank lowered the qualification criteria every time so as to attract more candidates. As the central bank failed to appoint a CEO at NBL, it had decided to allow the bank management to appoint the CEO.
As it will take a long time to appoint CEO with the upgraded criteria, the committee has also decided to extend the application deadline. The panel has also suggested removing central bank officials from heading the CEO selection committee of RBB, terming it the matter of conflict of interest. Currently, NRB deputy governor Maha Prasad Adhikari heads the selection committee.
“The NRB should not be responsible for the appointment of CEO at any bank because the central bank will be in an awkward position if action should be taken against the CEO it has appointed,” said Roka. “We have also suggested that the selection committee be reconstituated and should be headed by at least the finance secretary or other secretaries.”
Source: Kantipur
