Functions Duties and Powers of the CEO (as per BAFIA 2073)

As per the Bank and Financial Institution Act BAFIA 2073, section ’30’, following are the functions duties and Rights of the Chief Executive.

(1) The functions, duties and powers of the Chief Executive shall be as follows.

To exercise the powers delegated by the Board of Directors and to implement decisions of the Board of Directors subject to the Memorandum of Association and Articles of Association and oversee and control the activities and transactions of the bank or financial institution.
To prepare annual budget and action plan of the bank or financial institution and submit before the Board of Directors for approval.
To manage necessary human resources subject to the Personnel Bylaws of the bank or financial institution.
To implement or cause to be implemented the decisions of the General Meeting.
To operate the institution according to this Act and directives of the Nepal Rastra Bank and to have effective internal control system and risks management.
To submit statements, documents, decisions, etc. to be submitted by the bank or financial institution to the Rastra Bank or any other agency on time subject to this Act, directives of the Rastra Bank and Memorandum of Association and Articles of Association.
To operate the institution with optimum protection of interests of depositors, shareholders and the institution itself.
To apply appropriate norms for senior management subject to the policy as determined by the Board of Directors.

(2) The Chief Executive shall be accountable to the Board of Directors for own work.

Probable Questions

How BAFIA promote Internal Control, Financial Governance, Corporate Governance?
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What are the provision relating to the capital formation of the BFIs?
What are the provision relating to the prior-approval of BFIs according to BAFIA?
Define the condition of share buy back according to BAFIA.