MP Bidushi Rana Warns Against Disqualifying Bank CEOs

Kathmandu. National Independent Party (NIP) MP Bidushi Rana has said that bank chief executive officers (CEOs) or directors should not be disqualified and punished in the future. MP Rana said this during the discussion on the bill to amend the Nepal Rastra Bank Act, 2058, in the meeting of the House of Representatives' Finance Committee on Sunday.

She warned that if a provision is made to disqualify bank CEOs or directors in the future based on minor disciplinary action or a warning, it could lead to a leadership crisis in the banking sector. She argued that if minor warnings, written warnings, or fines are made grounds for future disqualification, capable individuals will not come to lead banks.

She said, 'In minor natural action, the Rastra Bank only warns. If they are given a written warning or fined and their salary and benefits are stopped, and directors or chief executive officers (CEOs) are disqualified in the future, then no CEOs will come to work in the future. Because this is a fear for everyone. If even a small warning is given and they are suspended or if minor disciplinary action is taken as major disciplinary action, then in the future, no one will want to come to the bank as a CEO or chairman.'

MP Rana also expressed dissatisfaction with the proposed provision regarding the qualification for appointing the Governor. She opined that it is not appropriate to disqualify former CEOs of 'A' class commercial banks from becoming Governor. Instead, she emphasized that they should be given the opportunity to become Governor by setting a 'cooling period' of two or three years.