Financial Services Institutions Bureau

The Financial Services Institutions Bureau (FSIB), the headhunter for directors of state-owned banks and financial institutions, recently recommended names for the posts of managing directors of Bank of Baroda and Bank of India.

About Financial Services Institutions Bureau (FSIB) –

• It is a government body set up under the Department of Financial Services.
• It replaced the Bank Board’s Bureau (BBB) which was declared an incompetent authority.
• Structure —
  • • FSIB would be headed by a chairman, a central government nominee.
    • The board would comprise the Secretaries of the DFS, the chairman of IRDAI, and a deputy governor of the RBI.
    • Additionally, it will have three part-time members who are experts in banking and three more from the insurance sector.

Primary role of FSIB —

• To identify manpower capabilities and ensure proper selection of talent for senior positions at financial institutions owned by the government.
• It is entrusted with making recommendations for the appointment of full-time directors and non-executive chairman of state-run financial services institutions.
• The final decision on the FSIB recommendation would be taken by the Appointments Committee of the Cabinet headed by the Prime Minister.

Other Mandates of FSIB —

• It would also issue guidelines for selecting general managers and directors of public sector general insurance companies.
• It will also be involved in formulating and developing business strategies for state-run banks and help them in their fund-raising plans.
• It would also monitor and assess the performance of public sector banks, government-owned financial institutions and insurance companies.