Board Charter

The Board adheres to the applicable laws, rules, codes and standards to ensure the interests of the Mr Price. A risk-based compliance framework has been adopted to ensure that the company complies with all applicable laws.

With the help of conclusions described in the last chapter, recommendations are developed and designed to present personal and independent point of view for the betterment and development of the organization. Recommendations are integral part of report and become imperative for internship report. Findings and Recommendations for MCB are as follows which will help the reader to understand all the aspects of the bank.

In order to meet formal expectations set by the Federal Reserve Board (FRB) and the Office of the Comptroller of the Currency (OCC), banks must elevate their standards for governance and enterprise risk management to meet increased and heightened expectations to include Enhanced Internal Audit Practices.

On 4th February 2013 the Financial Services (Banking Reform) Bill (the Bill) was introduced to Parliament. This Bill has sought to implement the ring-fencing proposals of the UK Independent Commission of Banking (ICB), which is also known as the Vickers report. The Bill also represents the UK’s response to wider international calls to structurally reform banks, such as the Liikanen reports’ proposals on reforming the structure of the EU banking sector .

This board of directors shares the governing influences upon the MCO as a whole. As Kongstvedt reveals, “the final approval of corporate bylaws rests with the board. It is the bylaws that determine the basic structure of power, both that of the plan officers and that of the board itself. Because significant liability issues around the Board of Directors each board member must undertake his or her duties with care and diligence” (Kongstvedt, 2009). This governing board of an MCO is imperative, as the capital that is often times required is controlled by this specific governing body. Furthermore, the governing board also has the obligation to release the necessary financial statements to stockholder (Kongstvedt,

These banks should ideally be divested of any sort of commercial interest, and must act in the best interest of its nation’s economic stability. A lot of meaning is carried out in being identified as ‘independent’ authority, where the bank possess powers to take its own decisions, approve its own legislature, follow its own policies and offer stability to the nation’s economy.

The Financial Services Act of 2012 in the UK came into force in 2013 on 1st April. This Act has the government reforms on the financial regulatory structure in the UK. The Act gives the new guidelines on the management of the banking sector and other supervisory roles in the financial services sector. This Act bestowed the oversight role to the Bank of England which is therefore expected to be responsible for the occurrences in the financial system and how the financial institutions manage their balance-sheet risks. This Act also stipulates that three more bodies are to be formed to assist in managing this sector. These bodies include the Financial Policy Committee (FPC), Prudential Regulatory Authority (PRA) and Financial Conduct Authority (FCA). This Act affects significantly the two previous Acts which have been running the sector. These are the Financial Services and Markets Act of 2000 and the Bank of England Act of 1998. In this paper, the Act is clearly analyzed and mostly the effects it has on the Financial Regulatory Regime in the UK (Noked 2013). The economy of the UK has been following a laissez-faire system since 1979 (Allan and Stuart 2011)

Assuming that BBB Bank is one of the FTSE 350 and based in the UK, we will be looking at two main publications that can be used as guidance for creating an effective and balanced board of directors. The first is the Higgs Report (2003), which focuses on the role and effectiveness of non-executive directors and builds on earlier reports. The second is the UK Corporate Governance Code (2010), which is administered by the Financial Reporting Council and is now the main reference in regards to corporate governance in the UK. I will not go into detail about all the recommendations made in the Higgs report or the UK Corporate Governance Code, but will focus instead on a few key points that Andrews would need to consider when looking at a restructure of the board at BBB Bank.

• Ensuring that the parent bank or bank holding organization have set up proper controls over bookkeeping and different frameworks, including catastrophe recuperation programs identified with the protection deals line of business

Basel III establishes a set of standards for the implementation of a liquidity ratio for international banks , a leverage ratio , counter-cyclical measures , a redefinition of equity and a review of the coverage of certain risks . This set of standards will help to strengthen the resilience of the financial and banking sector in anticipation of further financial and economic stress , regardless of the source. All of its new measures that the Basel Committee has developed to strengthen the regulation, supervision and risk management in the banking sector aims to strengthen transparency and communication within banks,

The banks organisational is known to be divisional organisation structure format for global operations, but SCB branches operating in Taiwan, Bangladesh and few Asian countries have matrix form of organisational structure. The firm’s top management is comprised of Shareholders marketing, Board of directors reported by Internal Audit and Assurance department, president and then reported by following departments. Consumer banking is responsible for strategy and business planning, customer experience and distribution development, branch operational activities and sales governance. Origination &

Most CG codes recommended that board of directors should be made up of a reasonable numbers of directors and independent directors as important factors in monitoring function (Abraham & Cox, 2007; Barakat & Hussainey, 2013; Elshandidy & Neri, 2015; Elzahar & Hussainey, 2012; Ntim et al., 2013). Theoretically, agency theory indicates that increased managerial monitoring associated with board structure (board size, CEO duality and NEDs) can have a positive influence on its control and monitoring activities, in addition, with the necessary skills to coordinate and be involved in a sub-committee devoted to risk management and enhance bank risk disclosure ( Sekome & Lemma, 2014; Healy & Palepu, 2001; Ntim et al., 2013) to mitigate information asymmetry (Bozec & Bozec, 2012; Elshandidy et al., 2013; Elzahar & Hussainey, 2012; Yatim, 2010). Similarly, resource dependence theory suggests that enhance board structure (board size, CEO duality and NEDs) offer greater access to their bank’s external environment, safeguarding the interests of all stakeholders by reduces conflict of interest among stakeholders and uncertainties and facilitates the securing of critical resources, such as finance and business contracts via enhance risk disclosure (Jia et al., 2009; Jizi et al., 2014). Also Elshandidy et al. (2013); Elshandidy and Neri (2015); Elzahar and Hussainey (2012); Mokhtar and Mellett (2013) argue that large board of

The structure of the bank is such that as a public entity it has the power to issue policy rules and regulations which are binding to the public at large. As a civil entity, the Bank Indonesia is able to represent itself in and Outside the court of law. The Board of the Governors is a organization responsible for formulating and

The Premier Bank Limited is a standout amongst the most surely understood private banks in our nation. It embraces all kind of keeping money exchanges to bolster the advancement of exchange and trade in the nation. Most importantly of their administration they experience their goals, for example, procuring and keeping up performing solid, setting up relationship saving money, presenting completely robotized frameworks, guaranteeing a sufficient rate of rate of return, keeping up satisfactory liquidity to meet development commitments, seeking after a compelling arrangement of Management by straightforwardness and responsibility at all levels.

Corporate governance is a key element in improving the economic efficiency of a bank. It should be fair and transparent to its customers and stakeholders in all its transactions. A sound corporate governance also contributes to the protection of depositors of the bank. It also involves the manner in which the business and affairs of banks are governed by their board of directors and senior management, which reflects how they function. This paper is descriptive in nature conferred about the composition of the board of directors in the Public sector commercial banks. The finding of this paper exemplify that the Public sector commercial banks have ‘Fit and Proper’ board in their respective banks.