Task Force on Banks
The corporate governance frameworks of MENA countries are a significant factor impacting on access to capital via securities markets and bank financing. As a part of the MENA OECD Investment Programme, the Working Group on Corporate Governance seeks to help efforts to mobilise investment by contributing to the improvement of corporate governance in the region. Among these priorities is corporate governance of banks, which Working Group participants suggested as the topic for discussion at their 2006 meeting (26-27 November 2006, Dubai, UAE).
The focus on regulation and corporate governance of banks is important for MENA given the prevailing role of banking institutions as a source of finance for the corporate sector. Improved board structures, administrative procedures and disclosure requirements could result in better governed banks, which are more likely to allocate capital efficiently.
The output, resulting from this initiative will be a Policy Brief on Corporate Governance of Banks in the MENA Region. The work will be carried out in the framework of a dedicated Task Force, with the OECD and Hawkamah, the Institute for Corporate Governance, serving as a joint secretariat
Read More About the Task Force's Scope of Work ( PDF 60 KB
Policy Brief Building Blocks ( PDF 101 KB
Statement from the 1st Task Force Meeting in February 2007 ( PDF 52 KB
Questionnaire for Banks ( PDF 90 KB
Draft Policy Brief on Bank CG ( Word 244 KB
Task Force on SOEs
Given the important role of state ownership in MENA countries, there is a need for a clear policy for enterprise reform relying on improved corporate governance of state-owned enterprises. Such policy is important for enterprises to be privatised as well as for those remaining under total or partial state ownership. By improving the process of decision making and control by the state, good governance can improve SOEs performance and competitiveness, and level the playing field between state-owned and private enterprises. In many instances, better performing SOEs can have positive fiscal implications, insofar as government budgets are all too often called to the rescue of large SOEs.
Good governance provides better transparency in corporate structures and operation and reduces the opportunities for political interference in the interactions amongst government, management and stakeholders. Thus, good governance of SOEs is conducive to better public sector governance in general, and to reducing corruption.
As one of the Task Forces endorsed by the Dubai Declaration issued in November 2006, the Task Force on Corporate Governance of State Owned Enterprises will develop a MENA Policy Brief on Corporate Governance of SOEs, identifying priorities and proposing concrete recommendations. The Policy Brief will be a consensus based document, resulting from the meeting and electronic consultations on an exposure draft.
Read More About the Task Force's Scope of Work ( PDF 44 KB
Corporate governance and insolvency are closely linked. As acknowledged by the OECD Principles of Corporate Governance, the corporate governance framework should be complemented by an effective, efficient insolvency framework and by effective enforcement of creditor rights. Companies with a good corporate governance record reduce the risks of lenders and are often able to borrow more and on more favourable terms than their competitors with a poor governance record. Moreover, corporate governance in insolvent enterprises poses specific challenges. Legal frameworks often impose on directors of insolvent enterprises to act in the interests of creditors, and provide the latter with specific role in the governance of distressed debtors.
In order to take stock of the existing MENA frameworks and practices, raise awareness on existing international guidance on insolvency and establish a network of regional insolvency experts, the OECD and Hawkamah will organise a meeting on Developing Sound Insolvency and Creditor Right Systems in the MENA. In doing this, the OECD and Hawkamah will explore avenues for co-operation with its international and regional partners. The input of the private sector will be sought in co-operation with INSOL International, the international organization of insolvency professionals.
Read More About the Module's Scope of Work ( PDF 44 KB
1st Task Force Meeting Synthesis Note – May 21, 2007, Cairo( PDF 176 KB
Task Force on Insurance
Following its meeting in Bahrain on 05 April 2007, the Arab Forum of Insurance Regulatory Commissions (AFIRC) and Hawkamah Institute for Corporate Governance agreed to establish a Task Force on Corporate Governance of the Insurance and Re-Insurance Industry in the region. The ultimate goal of this task force is to undertake a corporate governance assessment of the insurance sector in participating Arab countries; develop an insurance corporate governance policy brief to include conventional insurance and “Takaful”; develop corporate governance guidelines for the insurance sector; and build the corporate governance capacity of the industry. The Task Force will be engaging in a discussion of this topic, electronically and at dedicated meetings, and will be producing a non-binding Policy Brief, outlining conclusions and options for reforms, by the end of 2008.
Draft Policy Brief on Insurance CG
Complete the insurance CG survey ( Word 758
Related Article: Poor corporate governance in MENA insurance sector undermining growth