Time and age limits for serving on bank boards to stay

Some high pressure lobbying by interested parties to amend present rules under the Banking Act placing an age limit of 70-years on directors of bank boards and also not permitting such directors to serve for more than nine years have not succeeded with the Central Bank keen on continuing these safeguards.

The matter had been discussed at a recent meeting of a high powered committee with consensus achieved to allow the status quo to remain for the present and for the matter to be re-examined later.

It was suggested at a high level that existing restrictions prevents experienced persons from serving on these boards. The Central Banks position was that protecting depositors’ funds merited the highest priority.

Well informed sources said that while the Central Bank feels that the banking sector is in reasonable shape, the same cannot be said about the non-banking financial services industry with several finance companies in trouble.

This has been attributable to handing out licences "like confetti" one source said.

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