Re-appointment of President/BoD member: MFBs required to get SBP approval

The State Bank of Pakistan on Wednesday linked the re-appointment of President and member board of director of Microfinance Banks with prior approval of the regulator. Now all Microfinance Banks are required to obtain a No-Objection Certificate (NOC) from the State Bank before re-election or re-appointment of any president.
In this regard, the SBP has made amendments to the Prudential Regulations for Microfinance Banks and issued a circular BPRD No 4 to the presidents and Chief Executive Officers (CEOs) of all MFBs. "It has been clarified that all MFBs shall seek State Bank of Pakistan''''s prior clearance for the member of their Board of Directors and their President/CEO upon their re-election/re-appointment, as the case may be," the circular said.
Accordingly, the last paragraph of the Fit & Proper Criteria for Members of Board of Directors and President/Chief Executive Officer of Micro Finance Banks (MFBs) shall read as: "The MFBs shall submit information about the Board Members and/or President/Chief Executive Officer to State Bank, as per the Proforma enclosed as Annexure-C, for clearance before selection/appointment or re-appointment/renewal of term of Directors and President/Chief Executive Officer." All other instructions on the subject shall remain unchanged, the circular concluded.