Chairman, CEO not to get more than two four-year terms

The Finance Committee of the Parliament has recently approved a bill to amend the Bank and Financial Institution Act (BAFIA) reducing the tenure of Board Directors and Chief Executive Officers (CEOs) of banks and financial institutions (BFIs) to four years. According to the new bill, CEO, Chairperson and Managing Director can get appointment at a bank or financial institution for a maximum of two terms. After the law comes into effect, the CEO will not be able to remain for more than two terms or a total of eight years in the same BFI. However, the Chairperson or Managing Director will face continuous two-term limit implying that s/he may get back into the same position taking a break of two terms. The bill will be tabled in the full house of the Parliament for endorsement very soon, according to the Finance Committee sources.  The parliamentary panel has reviewed most of the provisions, including term limits for the CEO and Chairperson, in line with the instruction from the full house when the bill was returned on June 21. The Parliament had sent the draft of BAFIA amendment bill back to the Finance Committee following widespread criticism on some of the controversial provisions passed.

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