Context
The government has transformed the Banks Board Bureau (BBB), the headhunter for directors of state-owned banks and financial institutions, into Financial Services Institutions Bureau (FSIB) by making some amendments.
Background
- The amendments were required as the Delhi High Court in its order last year said the BBB is not a competent body to select the general managers and directors of state-owned general insurers.
About Financial Services Institutions Bureau (FSIB)
- The Financial Services Institutions Bureau (FSIB) would be established in place of the Banks Board Bureau (BBB).
- The FSIB will now select the chiefs of public sector banks and insurance companies.
- The FSIB will advise the government on a suitable performance appraisal system for whole-time directors and non-executive chairmen of the state-run financial services institutions.
- It will build a data bank relating to the performance of public-sector banks (PSBs), FIs and insurance companies.
- It will advise the government on “formulation and enforcement of a code of conduct and ethics for whole-time directors” in these institutions.
- The FSIB will even help these state-run banks, FIs and insurers in developing business strategies and capital raising plans, etc.
Banks Board Bureau (BBB)
- Banks Board Bureau is an Autonomous Body of Government of India.
- Founded in: 2016
- It was a body of eminent professionals and officials to make recommendations for appointment of whole-time directors as well as non-executive chairpersons of public sector banks (PSBs) and state-owned financial institutions.
- It was also entrusted with the task of engaging with the board of directors of all PSBs to formulate appropriate strategies for their growth and development.
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