Change of guards at SIBL

Social Islami Bank Ltd.'s (SIBL) top brass resignations have left a bitter taste in the banking sector. We are dumbstruck by the manner in which resignations submitted by the bank's top three members of senior management, including the chairman, were accepted by the central bank in only a few hours after submission. It is reported that the central bank worked at record speed to accept the resignations and issue no-objection certificates (NOC) which is in contravention of a BB circular (issued on December 23, 2014) that states that if the chief executive officer of a banking institution wishes to relieve himself of his responsibilities, he or she must give the board at least a one-month notice, along with reasons for resignation, that are supposed to be verified by BB.

It would seem that rules do not apply to certain banks. Because we find that BB went one step further and approved the appointment of the new managing director and issued a NOC on the same day. We marvel at the level of efficiency with which the central bank is operating these days! It seems that the central bank has given in to pressure from the new majority shareholder of the bank. If we are to take this as the new normal in our country, where banking rules and regulations are made to be broken, then there is little hope of ensuring good financial governance in the sector.