Impartiality of banking regulator
Recently while watching the nightly news on a private channel, an advertisement was shown featuring the Governor of the Central Bank. His message was how the country would transform itself to a prosperous country in 2020. It is no secret that the presentGovernor is a mouthpiece of the Government. I am surprised by his behaviour since he is a political appointment. However, what is perturbing is that a top private commercial bank was supporting these advertisements.
This bank was once well managed by very respectable bankers until an ex- central banker was appointed as chairman. Perhaps the chairman is returning the favour to his boss but I shudder to think that this could be one of the first instances of a commercial bank materially supporting the regulator. If that’s the case, serious considerations arise as to the impartiality of the regulator in discharging its duties. From the private bank’s perspective, can these material donations serve the purpose of its shareholders?
Concerned Retired Senior Banker