Running of banks

Tuesday, 3 January 2012 00:36 - - {{hitsCtrl.values.hits}}

It was hearting to note that the Central Bank despite the pressure from many quarters stood their ground and enforced the 70-year-old rule and the nine-year rule. They did not bow down to any pressure – the same way the Commercial Bank Board ensured that a member on their Board was appointed as its next Chairman, preventing Dheerasing an ex Central banker from parachuting into the Chairman’s slot.

The Central should stick to what they are good at regulating and not managing or running banks. Planting their retirees on boards as members could be a good thing only to bring the regulation aspects into the board and provide them with income to supplement their pensions.

Central Bankers aspiring to run banks must understand that the private sector is very different to the public sector, the culture, values and leadership behaviour in the private sector has evolved and has sophistication, which the public sector does not have in any form. They can only aspire to get there by getting exposed and seeing it firsthand.

Therefore, parachuting public servants to key positions in the public sector will only destroy the existing value system that has stood the test of time in some of the best-run companies. Cabral the CB Chief is a man from the private sector and what I am saying is not foreign to him.

R. Fernando

Attorney-at-Law