RBI forms committee to review governance of boards of banks
Updated: Jan 20, 2014 04:39:04pm
Mumbai, Jan 20 (KNN) The Reserve Bank of India (RBI) has constituted an expert committee to review governance of boards of banks in India.
The committee would be chaired by PJ Nayak, former chairman and CEO of Axis Bank.
The committee would review the regulatory compliance requirements of banks' boards in India, judge what can be rationalised and where requirements need to be enhanced.
Further, the committee would examine the working of banks' boards including whether adequate time is devoted to issues of strategy, growth, governance and risk management; to review central bank regulatory guidelines on bank ownership, ownership concentration and representation in the board.
The committee would also analyse the representation on banks' boards to see whether the boards have the appropriate mix of capabilities and the necessary independence to govern the institution, and to investigate possible conflicts of interest in board representation, including among owner representatives and regulators. In this regard it would also assess and review the ‘fit and proper’ criteria for all categories of directors of banks, including tenor of directorship.
It would also examine board compensation guidelines, and any other issue relevant to the functioning of banks' boards and the governance they exercise.
The committee is expected to submit its report within three months from the date of its first meeting. (KNN Bureau/SD)
The committee would be chaired by PJ Nayak, former chairman and CEO of Axis Bank.
The committee would review the regulatory compliance requirements of banks' boards in India, judge what can be rationalised and where requirements need to be enhanced.
Further, the committee would examine the working of banks' boards including whether adequate time is devoted to issues of strategy, growth, governance and risk management; to review central bank regulatory guidelines on bank ownership, ownership concentration and representation in the board.
The committee would also analyse the representation on banks' boards to see whether the boards have the appropriate mix of capabilities and the necessary independence to govern the institution, and to investigate possible conflicts of interest in board representation, including among owner representatives and regulators. In this regard it would also assess and review the ‘fit and proper’ criteria for all categories of directors of banks, including tenor of directorship.
It would also examine board compensation guidelines, and any other issue relevant to the functioning of banks' boards and the governance they exercise.
The committee is expected to submit its report within three months from the date of its first meeting. (KNN Bureau/SD)
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