As a retired banker and investor, I have been observing with interest the unfolding of the Bank Negara Malaysia (BNM) - RHB Bank saga . I am absolutely aghast to say the least.

On the one hand, we have the central bank pushing for transparency and increased disclosure in banking and on the other they are silent, secretive and inconsistent about their own actions.

Sulaiman Abdul Taib, the chairman of RHB Capital, had to wait eight months to get the green light from BNM to continue as a director. But only three months earlier, BNM had approved his application to be on the board of RHB Islamic Bank.

Has the criteria for directors approval changed over the last three months? Strange twist of fate, considering that Sulaiman is a major shareholder of the RHB Group.

And is it okay for the father of a very high-ranking central bank official to be a member of the board of directors of a foreign bank? He has since retired as an independent director of the said American bank. What criteria did BNM apply? Can we please practice what we preach and be a bit more transparent and consistent?

Similar approval delays have not been uncommon for CEO positions as well. As an ex-banker, I realise the anxiety and trauma that RHB would be going through without appropriate leadership.

Finally, BNM granted Sulaiman the green light but fell short of granting him chairmanship. As an investor, I would question the 'locus standi' of BNM in filling chairman positions. While BNM can quote Bafia (Section 55 to be precise) in approving directors, I think shareholders should have a say in voting for the chairman. Where does regulation end and investment and management begin?

In this day and age of liberalisation, BNM's moves and motives seem to be on a collision course with the Finance Ministry. With the ministry opening up the finance industry and issuing statements of encouragement to foreign players (49 percent ownership of Islamic and investment banks and 30 percent ownership of commercial banks etc) the incomprehensible and perhaps even 'ultra vires' actions of BNM may actually drive away prospective foreign bankers.