Kathmandu, August 3 - Nepal Rastra Bank (NRB), the central monetary authority, has set the basic qualification criteria for chief executive officers and board of directors of banks and financial institutions (BFIs) in line with the provision of the Banks and Financial Institutions Act.
By issuing the ‘Qualification and work experience for CEOs and BoDs of BFIs Bylaw 2017’, NRB has set the new qualification requirements.
According to the new provision, to be eligible to be the chief executive officer of a commercial bank, development bank or financial institution, a candidate needs to have completed Masters degree in either management, banking, finance, economics, commerce, accounting, statistics, mathematics, trade administration or law.However, if a candidate has 10 years of experience or more in an international organisation, government office, university or any bank or financial institution as an officer or has held a higher position, they could also qualify for the CEO’s post of a commercial bank, development bank or a finance company even if he or she only has a Bachelor’s degree in the aforementioned subjects or a degree in chartered accountancy.
While the educational qualification requirements have been kept same for micro-finance institutions, any candidate who has three years of working experience in the above mentioned organisations could qualify as CEO. To qualify to be appointed to board of BFIs, NRB has set different criteria. Firstly, the candidate should either have worked for at least five years in public service or international organisation. Otherwise, the candidate should have a Bachelor’s degree and three years of working experience as a government officer or officer at any bank and financial institution. The third option is that the candidate should have a Masters degree in one of the subjects — management, banking, economics, commerce, accounting, statistics, mathematics, trade administration or law — to become the board member of BFIs.
As per new provision, any person having completed 10-plus-two and with two years of work experience in government service or banking sector in the post of officer or higher position could be deemed eligible to be appointed to board of microfinance company.
Likewise, anyone having a Bachelor’s degree on management, banking, finance, economics, commerce, accounting, statistics, mathematics, trade administration or law could also be the board member a microfinance company.
The Banks and Financial Institutions Act was endorsed by the Legislature-Parliament on January 10. The act has given right to the central bank to set the qualification requirements for CEOs and board members of BFIs.
Source: The Himalayan Times