Tuesday Nov 19, 2024
Tuesday Nov 19, 2024
Tuesday, 19 November 2024 00:39 - - {{hitsCtrl.values.hits}}
A seminar on the new corporate governance rules for banks will be held on 27 November at NH Collection from 2 p.m. to 5 p.m.
The keynote address will be delivered by Central Bank Governor Dr. Nandalal Weerasinghe. Other speakers and panellists include Securities and Exchange Commission and Insurance Board of Sri Lanka former Director General and Chairman Dr. D.C. Jayasuriya, PC, HNB PLC Director Kithsiri Gunawardena, and SEC former DG and Ministry of Finance Senior Advisor Malik Cader.
Organisers said the CBSL issued new directives in September 2024, which will take effect on 1 January 2025. These directives are aimed at improving corporate governance in licensed commercial and specialised banks. The measures are designed to enhance the stability of the banking sector and the financial system by promoting responsible management practices. This seminar will focus on the key initiatives outlined in these directives.
The directives place the responsibility on the Board of Directors of each bank to oversee management and governance effectively, ensuring financial health, risk management, and compliance with laws. The Board is committed to making decisions that serve the best interests of depositors, creditors, shareholders, and stakeholders.
One significant aspect of the new directives is the enhancement of board efficiency in corporate governance. This transformative approach aims to empower bank directors to become more proactive and effective leaders. Moving away from traditional practices, these initiatives emphasise actionable engagement during board meetings. Key changes include the introduction of a minimum of 12 board meetings per year to ensure regular and focused discussions. Additionally, directors who miss more than three meetings will be deemed to have vacated their position, thereby reinforcing accountability.
These changes represent a significant step toward creating a more proactive and efficient board, ultimately enhancing the overall governance framework of the bank. The Board must also ensure that these functions are properly positioned and staffed to maintain the bank’s safety and soundness.
The upcoming seminar is meant for all chairmen and directors of banks and financial institutions, legal managers/officers, compliance managers, and accountants. For details contact 0763666246 [email protected], or use link to register https://tinyurl.com/CGforBanks.
