The
government has reportedly initiated the measures to implement key
recommendations of the Banks Board Bureau (BBB) Professionalizing
the boards of PSBs and bringing in experts in risk management, information
technology, and human resource management are said to be the top points of the
BBB's recommendations. It has
also advised that PSBs be asked to adopt best practices from both private banks
and global financial institutions and strengthen internal controls and
risk-management practices. In its
recommendations, the BBB has also suggested that a nomination and remuneration
committee (NRC) should be set up in banks, along the lines suggested by the
Companies Act, 2013. Another recommendation is to reconstitute the management
committee of the board which takes decisions on large value loans. In the
light of the BBB's recommendations, the government is reportedly looking at how
to strengthen the risk-management committee, which should be given the mandate
to set a definite matrix for various credit underwriting activities. It is also
considering how to firewall the audit committee of the board so that full-time
directors are not a part of it. 
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BBB recommends critical measures for improving PSBs
By IndianMandarins - 2019-01-22 10:40:49
The
government has reportedly initiated the measures to implement key
recommendations of the Banks Board Bureau (BBB)
Professionalizing the boards of PSBs and bringing in experts in risk management, information technology, and human resource management are said to be the top points of the BBB's recommendations.
It has also advised that PSBs be asked to adopt best practices from both private banks and global financial institutions and strengthen internal controls and risk-management practices.
In its recommendations, the BBB has also suggested that a nomination and remuneration committee (NRC) should be set up in banks, along the lines suggested by the Companies Act, 2013. Another recommendation is to reconstitute the management committee of the board which takes decisions on large value loans.
In the light of the BBB's recommendations, the government is reportedly looking at how to strengthen the risk-management committee, which should be given the mandate to set a definite matrix for various credit underwriting activities. It is also considering how to firewall the audit committee of the board so that full-time directors are not a part of it.
