Long tenures and inter-locking directorates are common practices, resulting in criticism that cronyism and back-door deals are rife in the business community.
A Central Bank statement on the rules for Licensed Commercial Banks and Licensed Specialised Banks, effective from January 1, 2008, said there is a strong need for commitment and effective contribution to the prudent management of the affairs of banks.
"It is very likely that the effectiveness of such commitment and contribution would tend to decrease with advanced age of directors and more particularly, if the age of such director is well beyond the normal age of retirement, as generally accepted in the country," the rules said.
Under the new rules, the directors have to be below 70 years.