FINANCIAL SERVICES INSTITUTIONS BUREAU (Syllabus: GS Paper 3 – Economy)

Context: Financial Services Institution Bureau (FSIB) has selected Challa Sreenivasulu Setty as the next chairman of State Bank of India (SBI).

Financial Services Institutions Bureau (FSIB)

• Constituted on: July 01, 2022 in place of Bank Board Bureau (BBB).
• Nodal Department: Department of Financial Services (Ministry of Finance).
• Vision: Search and select suitable persons for Board of Public Sector Banks, Public Sector Financial Institutions and Public Sector Insurance Companies.
• Mission: To Promote excellence in Corporate Governance in Public Sector Financial Institutions.
• Members: Headed by a chairman, a central government nominee. The board would comprise: 

oThe Secretaries of the Department Financial Services (DFS), 

oThe chairman of Insurance Regulatory and Development Authority (IRDAI), and 

oA deputy governor of the RBI. 

oAdditionally, it will have three part-time members who are experts in banking and three more from the insurance sector.

Functions

• FSIB recommends candidates for appointment as whole-time directors and non-executive chairpersons in Public Sector Banks, financial institutions, and Public Sector Insurers.
• FSIB advises the Government on matters such as appointments, transfers, extensions of terms, and terminations of directors' services. 
• FSIB builds and maintains a databank containing performance-related data for Public Sector Banks, financial institutions, and Public Sector Insurers.
• FSIB plays a role in formulating suitable training and development programs for management personnel within PSBs, FIs, and PSIs.
• FSIB assists PSBs, FIs, and PSIs in developing business strategies and plans for capital raising and other financial initiatives.