The Central Bank of Nigeria (CBN) in a new banking supervision policy, has stated that it will review the performance of bank chief’s every two year in order to ascertain if they are fit and proper to manage their banks.
The assessment has been tagged the “fit and proper persons test” and will be a key factor in determining whether a bank CEOs tenures will or will not be extended.
A circular to that effect, reminding all managing directors/ chief executive officers of Deposit Money Banks and Discount Houses of the development, said they would be assessed based on their response to issues such as examiners report, external auditors’ letters/ reports, as well as customers complaints, among others.
According to the circular signed by Tokunbo Martins, Director of banking supervision, “The tenure of MD/CEOs of banks is subject to continuous fit and proper persons tests every two years and will be renewable, subject to satisfactory performance by respective CEOs in responding to issues such as examiners reports, external auditors’ letters/reports and customers complaints, among others.”
