The Central Bank seeks to promote the effective and efficient development and functioning of the banking system. To this end, Banks are required to have a comprehensive approach to corporate governance to ensure their resiliency and enhance overall financial stability. In particular, Banks and Groups must have robust corporate governance policies and processes covering strategy, organizational structure, control environment, risk management responsibilities and compensation of Boards and Staff.

In introducing this Regulation and the accompanying Standards, the Central Bank intends to ensure that Banks’ approaches to corporate governance are in line with leading international practices.

This Regulation and the accompanying Standards establish the overarching prudential framework for corporate governance. Regulatory requirements for selected governance areas such as risk management, internal controls, compliance, internal audit, financial reporting, external audit and outsourcing are established in separate Central Bank Regulations and Standards.

This Regulation and the accompanying Standards are issued pursuant to the powers vested in the Central Bank under the Central Bank Law.

Where this Regulation, or its accompanying Standards, include a requirement to provide information or to take certain measures, or to address certain items listed at a minimum, the Central Bank may impose requirements that are additional to the listing provided in the relevant Article.