PRZOOM - /newswire/ -
Colombo, Sri Lanka, 2007/12/28 - The Global Banking Industry has been subjected to intense and increasing levels of regulations (from Sarbanes Oxley to Basel 11), that has demanded these financial services institutions to dedicated significant focus on ensuring compliance.
In Sri Lanka too, Mandatory Code on Corporate Governance will demand that local financial services institutions ensure compliance.
The Mandatory Code will be instrumental in developing the standard of corporate governance within the banking sector in Sri Lanka. The Mandatory Code should not be looked at in isolation of the provisions within the present Banking Act. Close scrutiny of the Draft Mandatory Code extensively spells out the responsibilities of the Board, the Directors, Management and a number of other pivotal areas.
MTI’s Senior Business Analyst (Legal & Governance) Yatila Wijemanne said, “these responsibilities should be followed through the rules that have been entrenched under each category. The rules that have to be compiled would come across as exhaustive, but it is a clear move forward in taking the level of corporate governance within the banking sector to the next level.”
The Mandatory Code details for instance, the composition of the Board and the requirement to understand risk management mechanisms in the interests of depositors, creditors, shareholders and other stakeholders. Furthermore, aspects relating to the appointment, duties and responsibilities of the Chairman and CEO have also been included. The Draft Mandatory Code has laid continuous emphasis toward the necessity to consult experts not only within the legal field but other associated fields when concerning the decision making of the Bank. Extensive rules have also been drafted on corporate governance elements such as transparency and accountability.
The level of success of the mandatory code will depend according to Yatila Wijemanne on “how banks would take up the challenge to re – organize their respective structures to deal with the changes in the level of corporate governance”. Business Analyst Lihini Fernando said “the stage is set to analyze the way in which banks would comply with the Mandatory Code”.
MTI Consulting is a fast growing international strategy consultancy with operations in Dubai, Bahrain, Malaysia, India, Pakistan, Bangladesh, Sri Lanka and Pakistan, having worked with leading multi-national and regional clients across 33 countries in 5 continents, offering the full bouquet of management and marketing consulting and research solutions.
In addition to their mainstream strategy consulting, MTI recently set-up 6 specialized business units for Corporate Finance, Legal and Governance, Technology, HRM, Supply Chain Management and Branding.