PMA issued the Corporate Governance Guide for Banks in Palestine: Rules and Best Practices set forth in compliance with the standards of the Basel Committee on Banking Supervision and the decisions taken end of last year by the Board of Governors of Central Banks and Arab Monetary Institutions at the Arab Monetary Fund. The Guide aims at providing the sound basis to ensure best management of the institution. The PMA is keen on the reinforcement and promotion of these basic foundations in the banking system operating in Palestine in order to achieve transparency and good governance.
The Guideline includes a set of important principles that contribute to the improvement and development of bank performance. Consequently, it ensures optimal exploitation of resources, product diversification and promotion of confidence in the banking system thereby contributing to a sustainable development process. It also fosters awareness of members of board of directors to their role as the most responsible party of bank management and helps organize the relationships between boards of directors, executive administrations, shareholders and other stakeholders.
The Guide is based on guidelines that were approved by of the Basel Committee on Banking Supervision in 2010 and includes rules and obligatory principles regarding the duties of the board of directors, its member qualifications, its committees, risk management methodologies, internal inspection and external audit, bonus and incentive policies and requirements of governance for Islamic banks.
It is worth mentioning that the reinforcement of the concepts of banks governance (or good governance) will be contributing to the financial and economic stability, protecting depositor rights, facilitating access to financing at a lower cost, increasing the market value of banks, increasing confidence and engagement with international banking and financing institutions and enhancing corruption risk control. The Guide will contribute to raising performance level, encouraging investment and attracting capital.
The Guide can be found on PMA website www.pma.ps and accessed here.