Tuesday, August 16, 2016
BNM policy still puzzling
Our June 29th posting [read here] refers.
It was the posting about Banker I that used to head Bank H and then moved up into the shareholder S organisation.
Banker I was supposed to represent S on the Board of Director of Bank H. There was no plan to make him Bank H Chairman, just a member of the Board of Director.
Bank Negara Malaysia (BNM) rejected that arrangement. Last week, there was a report related to this issue.
Sorry couldn't get the original Straits Times report. Just FMT's reporting of ST report:
Will new BNM rules affect Nazir Razak’s future at CIMB?
FMT Reporters | Aug 11, 16 10:37am
A Straits Times report says the move to demarcate the separation of powers between board and management of banks has ‘implications’ on his future as chairman of CIMB.
KUALA LUMPUR: New Bank Negara Malaysia (BNM) guidelines may impact on Nazir Razak’s position as CIMB Group chairman next year, according to a report in The Straits Times.
Under the Bank Negara rules issued early this month, chief executive officers of financial institutions are prohibited from taking over as chairmen of the board of directors.
The guidelines also stipulate that financial institutions must have a majority of independent directors on their respective boards, the report said.
The ST report said that while the rules were not expected to be applied retroactively, they could have “implications” for Nazir “when his position as director on the board comes up next year for renewal by the bank’s nomination committee.”
The report however does not explain what these implications are.
Nazir, who is the younger brother of Prime Minister Najib Razak, served as CIMB’s CEO between 1999 and 2014, before becoming chairman of the group.
The report said CIMB executives did not respond to requests for comment on how the bank intended to deal with the new guidelines.
The guidelines, said the report, were aimed at demarcating the separation of powers between the board and the management.
A senior central bank official, who spoke on condition of anonymity, told the ST that Bank Negara wanted to avoid situations where a “chairman could be in a position to oversee policies that were put in place when that person was CEO.”
The report said the new rules had forced Najib’s administration to appoint Abdul Wahid Omar chairman of government trust fund agency Permodalan Nasional instead of chairman of Maybank.
The ST report quoted unnamed senior aides of Najib as saying the prime minister had originally planned to appoint Abdul Wahid, who was minister in the prime minister’s department in charge of economic planning, as chairman of Maybank when he stepped down from the Cabinet in June.
However as Wahid had been president and CEO of Maybank between 2008 and 2013, they appointed him chairman of Permodalan Nasional Berhad instead.
Unfortunately, it was retrospectively applied to a larger extreme on Banker I and shareholder S. Nazir is no more of interest but only that of Banker I, Bank H and institutional shareholder S.
Lets wait for this policy announcement. It better be more inclusive, if you know what we mean.
- Merdeka greetings
- Bribes that makes blood boil
- Why no statement from Bank Negara on Bank Rakyat i...
- Toots Thielemans .... died at 94
- MACC: "Paper project" and soldiering on
- A lead to the answer of a puzzle
- How will public react if Siti Nurhaliza's husband ...
- Jho Loh and Riza to appear in court
- Maybe it is about Syed Hamid
- Security concern on passport production
- Bersatu versus United ....
- BNM policy still puzzling
- Government Official robbed off his RM280,000 Rolex...
- Hillary Brexit-ing: Will it be the end of TPPA?
- Passport fiasco: Who to blame?
- Lending The Donald a hand
- Erdogan: Discussion on leadership and loyalty in I...
- Public perception: Gullible or "cognitive miser"?
- BR1M for Britain
- After Turkey military coup, Malaysia's turn? (Part...
- ▼ August (20)
- ► 2015 (214)
- ► 2014 (164)
- ► 2013 (200)
- ► 2012 (202)
- ► 2011 (163)
- ► 2010 (187)
- ► 2009 (285)
- ► 2008 (343)
- ► 2007 (140)