KARACHI: The State Bank of Pakistan (SBP) on Wednesday made an amendment in prudential regulations allowing the banks and Development Financial Institutions (DFIs) to form specialised committees to share the load of activities.
“The board may form specialised committees with well-defined objectives, authorities and tenure,” said a circular issued by the SBP on Wednesday.
These committees, comprising of at least one non-executive board member, will oversee areas like audit, risk management, credit, and recruitment, remuneration and nomination etc.
“The chairman of the board may chair and/or be a member of any one of the board committees except audit and risk management committees,” said the circular.
Further, the audit committee of the board will invariably be chaired by an independent director.