CBN Reviews Tenure Of Banks’ Executive Management, Non-Executive Directors
- The Central Bank of Nigeria has changed the tenure of bank executives and non-executive directors
- CBN said the development is to strengthen governance practices in the banking industry
- It said bank MDs and DMDs should be subject to the terms of their engagements as approved by bank directors
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The Central Bank of Nigeria (CBN) has revised the regulatory requirements for the tenure of executive management and non-executive directors of Deposit Money Banks (DMBs) and Financial Holding Companies.
In a circular posted on its website on Friday, the apex bank said the move was part of measures to strengthen governance practices in the banking industry.
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Bank MDs to stay subject to the terms of their appointment
According to the circular signed by the Director of the Financial Policy and Regulation Department at the CBN, Chibuzo Efobi, the new directive takes effect from Thursday, February 23, 2023.
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The tenure of Executive Directors (EDs), Deputy Managing Directors (DMDs), and Managing Directors (MDs) “shall be following the terms of their engagement approved by the Board of Directors of banks, subject to a maximum tenure of ten years.”
It also stated that where an Executive Director, a DMD, becomes the MD/CEO of a bank or any other DMB before the end of their maximum tenure, “the cumulative tenure of such Executive shall not exceed twelve years.”
However, the circular said that for an ED who becomes a DMD of a bank or any other DMB, “his/her cumulative tenure as ED and DMD shall not exceed 10 years.”
Non-Executive directors to serve foe 12 years
Furthermore, it announced that Non-Executive Directors (NEDs), except Independent Non-Executive Directors (INED), “shall serve for a maximum period of twelve years in a bank, broken into three terms of four years each.”
In addition, the circular said that EDs, DMDs and MDs, who exit from the board of a bank either before or at the expiration of his/her maximum tenure, “shall serve out a cooling-off period of 1 year before being eligible for appointment as a NED to the Board of Directors.”
Similarly, it stated that NEDs who exit from the board of a bank, either before or at the expiration of their maximum tenure of 12 years(3 terms of 4 years each), “shall serve out a cooling-off period of 1 year before being eligible for appointment to the Board of Directors of any other DMB.”
According to the circular: “The cumulative tenure limit of EDs/DMDs, MDs, and NEDs across the banking industry is 20 years.”
Bank workers demand clarification from CBN over old naira notes, want new deadline
Legit.ng reported that the Association of Senior Staff of Banks, Insurance, and Financial Institutions (ASSBIFI) had asked the Central Bank of Nigeria (CBN) to clarify its position on depositing old naira notes.
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ASSBIFI President Olusoji Oluwole made the call on Sunday, February 19, 2023, during an interview with the News Agency of Nigeria (NAN).
CBN had said it had mandated commercial banks to assist in collecting old N500 and N1000 notes from members of the public with a limit of N500,000 and below.
Source: Legit.ng
