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The Reserve Bank of India has constituted an expert committee to review the governance of bank boards in India.
The committee will review the regulatory compliance requirements of the board of directors of banks, judge what can be rationalised and where requirements need enhancements, examine the working of the boards, including whether adequate time is being devoted to issues of strategy, growth, governance and risk management, the RBI said in a notification.
The committee will review central bank regulatory guidelines on bank ownership, ownership concentration and representation on the board, analyse the representation to see whether the boards have the appropriate mix of capabilities and necessary independence to govern the institution, and investigate possible conflicts of interest in board representation, including among owner representatives and regulators.
The committee will review the regulatory compliance requirements of the board of directors of banks, judge what can be rationalised and where requirements need enhancements, examine the working of the boards, including whether adequate time is being devoted to issues of strategy, growth, governance and risk management, the RBI said in a notification.
The committee will review central bank regulatory guidelines on bank ownership, ownership concentration and representation on the board, analyse the representation to see whether the boards have the appropriate mix of capabilities and necessary independence to govern the institution, and investigate possible conflicts of interest in board representation, including among owner representatives and regulators.
‘Fit and proper’ criteria
In this regard, it will also assess and review the ‘fit and proper’ criteria for all categories of directors of banks, including tenor of directorship, board compensation guidelines and any other issue relevant to the functioning of the boards and the governance they exercise.
The committee is expected to submit its report within three months after its first meeting.
Chaired by P.J. Nayak, former Chairman and CEO of Axis Bank, the committee members include S. Raman, whole-time member, SEBI; Shubhalakshmi Panse, Chairperson and Managing Director, Allahabad Bank; Pratip Kar, former Executive Director, SEBI, and Joydeep Sengupta, Director, McKinsey & Company.
beena.parmar@thehindu.co.in
Source: Thehindubusinessline
The committee is expected to submit its report within three months after its first meeting.
Chaired by P.J. Nayak, former Chairman and CEO of Axis Bank, the committee members include S. Raman, whole-time member, SEBI; Shubhalakshmi Panse, Chairperson and Managing Director, Allahabad Bank; Pratip Kar, former Executive Director, SEBI, and Joydeep Sengupta, Director, McKinsey & Company.
beena.parmar@thehindu.co.in
Source: Thehindubusinessline
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