Speaking at a discussion on draft bill to amend Bank and Financial Institutions Act (BAFIA) by a panel formed by Finance Committee of the parliament on Sunday, they suggested to the parliament to retain the earlier provision that ensures five percent shares of BFIs to its staff members.
Former president of Nepal Bankers Association (NBA) Rajan Singh Bhandari said that five percent shares of a financial institution should be allocated for its staff. “Staff of the company should be encouraged by offering shares and bonus. They should not be discouraged by scrapping a benefit that they have been enjoying,” Bhandari, who is also the CEO of Citizens Bank International Ltd, said. “If possible they should be allocated more, otherwise the earlier benefit should not be scrapped.”
The amendment bill also proposes allowing a financial institution from lowering promoter shares and increasing public shares to 49 percent from existing 30 percent.
Also speaking at the discussion, Global IME Bank Chairman Chandra Dhakal said that increasing shares to staff members will keep them motivated to perform better.
Bankers also take exception over a new proposed measure to limit the terms of CEO and Chairman of a bank in the draft amendment bill. “The provision to restrict a chairman as well as CEO from continuing their position for more than two terms should be scrapped. Since there are other ways to check the malpractice of a banker, fixing number of terms is not the appropriate measure,” Krishna Raj Lamichhane, president of Development Bankers Association, Nepal (DBAN), told the panel.
Meanwhile, private sector representatives have suggested to the panel to not allow formation of other trade unions in a financial institution except the single authorized union.
Sudhir Ojha, a representative of microfinance institutions, said that the limit to fix the number of board directors to five to eight should be increased to at least nine.
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