Regulatory Alerts2012-06-07
Bank governance instructions
The letter is addressed to the Chairman of the Board of Directors of a bank from the Central Bank of Egypt. It outlines new governance instructions for banks in Egypt, emphasizing the importance of adopting international best practices and strengthening internal governance and control systems. All banks registered with the Central Bank of Egypt are required to develop or enhance their governance systems accordingly. The letter also highlights the need for banks to disclose the total compensation of their top 20 earners and establishes guidelines for the Board of Directors' structure and responsibilities, emphasizing the importance of independent and non-executive members. It further emphasizes the role of the Board in setting strategic directions, overseeing management, and ensuring effective internal controls and risk management. The letter also discusses the importance of communication channels, professional development, and performance evaluation for Board members. Finally, it provides instructions for several committees, including the Executive Committee, Audit Committee, Risk Committee, Remuneration Committee, and Governance and Nominations Committee, detailing their roles and responsibilities.