Regulatory Alerts2008-05-11
D5/08: Composition of board-appointed committee to approve large exposures
The South African Reserve Bank issued Directive 5/2008 to mandate the specific composition of board-appointed committees responsible for approving large credit exposures. The directive requires these committees to include at least three non-executive directors, the chief executive officer, and heads of finance, risk, and credit to ensure independent oversight and effective risk management. Additionally, the directive stipulates that committee decisions must be recorded in writing and ratified by the full board to maintain sound corporate governance and mitigate credit concentration risks.
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