Turkey Floats Limit on Bank CEO Tenures After Ponzi Scandal

  • Banking regulator sent proposal to banks for evaluation
  • CEOs would be allowed to serve in the job for maximum 10 years
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Turkey’s banking regulator has drawn up a plan to restrict the tenures of banking executives, a proposal that comes after high-profile accusations of a ponzi scheme at a bank with one of the nation’s longest-serving chief executive officers.

According to the proposal, CEOs would be permitted to serve in that position at the same bank for at most 10 years, according to a draft of the regulation seen by Bloomberg. Deputy general managers would also be allowed up to 10 years, but that could be extended for as much as 5 years with approval from regulators. The number of deputy general managers won’t exceed 15 per lender, according to the draft.