Regulatory Alerts2021-06-30
Circular Re. Key Principles of Governance in Financial Institutions Subject to Saudi Central Bank’s Oversight and Supervision
The Saudi Central Bank (SAMA) issued these Key Principles of Governance to establish minimum requirements for effective management in financial institutions under its oversight, aiming to enhance stability and protect stakeholder rights. The principles detail qualifications, composition, and responsibilities for board members and executive management, mandating independence between the Board Chairman and CEO, clear delineation of duties, and robust internal control systems. These guidelines are mandatory for local banks, banking institutions, finance companies, and other specified financial entities, complementing other SAMA instructions on governance.
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