published by The Global Corporate Governance Forum, June 16th, 2011.
The IFC Global Corporate Governance Forum and the European Bank for Reconstruction and Development are helping banks and other financial institutions in Southeast Europe improve their corporate governance practices to enhance their performance and competitiveness.
At a high level policy meeting on corporate governance of banks in the region, hosted by the EBRD, institutional experts and regional participants reviewed and endorsed a Policy Brief on Corporate Governance for Banks in Southeast Europe. The brief included recommendations on how to improve board practices, disclosure, and risk management.
The Policy Brief will be a non-binding document to serve as a reference point, together with other international guidance such as the OECD Principles of Corporate Governance and the Basel Committee Guidance on Enhancing Corporate Governance for Banking Organisations (“Basel CG Guidance”).
One key recommendation of the policy brief is targeted at bank group structures and stipulates that parent banks need to be aware of subsidiary bank governance practices and ensure that subsidiary banks adhere to appropriate governance practices from both parent and subsidiary jurisdictions. The policy brief also provides extensive recommendations on internal controls and the roles of supervisors. (continue reading… )