Regulatory Alerts2021-07-01
Key Principles of Governance in Financial Institutions under the Saudi Central Bank
Issued by the Saudi Central Bank, these principles establish mandatory and guiding corporate governance standards for local banks, finance companies, and related financial entities. The framework mandates qualified and independent board members, clear separation between the Chairman and CEO roles, and structured oversight through dedicated risk, compliance, and internal audit committees. It further requires transparent disclosure, rigorous appointment and evaluation procedures for leadership, and strict adherence to strategic planning and stakeholder rights to ensure institutional stability.
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