Corporate directors need to be updated: SBP

KARACHI: The State Bank of Pakistan (SBP) has made it mandatory for company secretaries of banks/ development finance institutions (DFIs) to keep their board members updated.

According to a circular issued on Saturday by the Central Bank, it asked the secretaries to provide their respective board members the extracts from the relevant laws, rules and regulations regarding their powers, duties and responsibilities and keep them updated of any revisions/amendments.

SBP issued this instruction with the view to ensure that all the directors of banks/ DFIs are well-acquainted with all applicable laws and regulations regarding Corporate/Commercial Banking.

The above instructions will come into force with immediate effect. The Banks/DFIs have been advised to communicate the contents of this circular to all their Board members, says BPRD Circular Letter No.13.

It may be pointed out here that Para 3 of Prudential Regulation G-1 B for Corporate/Commercial Banking, regarding responsibilities of the Board of Directors provided that all the members of the Board should undertake and fulfill their duties and responsibilities keeping in view their legal obligations under all the applicable laws and regulations.

Copyright APP (Associated Press of Pakistan), 2011