Nepal Rastra Bank Governor Yuba Raj Khatiwada has said that the government was drafting strong legislations against financial offences which are expected to enhance governance and stability of the financial sector.
Speaking at a seminar on ´Corporate Governance-Where have we failed?´ organized by National Banking Institute (NBI) in the capital on Wednesday, Khatiwada said that political atmosphere outside financial sector had been affecting corporate governance.
“Political environment is fundamental to ensure corporate governance because we are the subject of broader socio- economic system. We cannot isolate ourselves from these aspects,” he added.
Khatiwada, however, was quick to point out the need for introspection to ensure better governance.
“We didn´t have to face financial crisis despite decade-long conflict and long transitional phase. We have seen countries with better governance, better political stability and more transparency suffer from financial crisis,” he said stressing the need to bring about improvement in the financial sector.
Speaking at the program, Rajan Singh Bhandari, president of Nepal Bankers Association said that many public depositors lost huge amount of money in the past due to the lack of corporate governance in banks and financial institutions (BFIs). “Many BFIs have failed due to non-compliance to regulatory laws and lack of good governance,” he said, adding:
“Problem related to corporate governance arises because of vested interest of persons who are in the leadership, lack of internal control system and the gap between top and lower management levels.”
Bhandari also emphasized the need for proper synchronization among stakeholders to do away with problems in the financial sector. “Human resource, IT, accounting/financing and internal audit, among others, need to be handled in a prudent manner. Similarly, the Board of Director (BOD) should be cooperative for smooth functioning of BFIs,” he added.
Sashin Joshi, chairman of NBI, also said governance of every institution has come under scrutiny and the BFIs are no exception to it.
Lopa Rahman, corporate governance specialist at IFC South Asia; Sheela Rahman, Advocate at Supreme Court of Bangladesh, K Mahmood Sattar, former CEO of City Bank, and Grand Bank Nepal´s CEO Parshuram Kunwar Chhetri, among others, presented their papers related to corporate governance in the day-long seminar organized with the support of International Finance Corporation and Asian Development Bank.
source: republica,17 sept 2014
LINK
Speaking at a seminar on ´Corporate Governance-Where have we failed?´ organized by National Banking Institute (NBI) in the capital on Wednesday, Khatiwada said that political atmosphere outside financial sector had been affecting corporate governance.
“Political environment is fundamental to ensure corporate governance because we are the subject of broader socio- economic system. We cannot isolate ourselves from these aspects,” he added.
Khatiwada, however, was quick to point out the need for introspection to ensure better governance.
“We didn´t have to face financial crisis despite decade-long conflict and long transitional phase. We have seen countries with better governance, better political stability and more transparency suffer from financial crisis,” he said stressing the need to bring about improvement in the financial sector.
Speaking at the program, Rajan Singh Bhandari, president of Nepal Bankers Association said that many public depositors lost huge amount of money in the past due to the lack of corporate governance in banks and financial institutions (BFIs). “Many BFIs have failed due to non-compliance to regulatory laws and lack of good governance,” he said, adding:
“Problem related to corporate governance arises because of vested interest of persons who are in the leadership, lack of internal control system and the gap between top and lower management levels.”
Bhandari also emphasized the need for proper synchronization among stakeholders to do away with problems in the financial sector. “Human resource, IT, accounting/financing and internal audit, among others, need to be handled in a prudent manner. Similarly, the Board of Director (BOD) should be cooperative for smooth functioning of BFIs,” he added.
Sashin Joshi, chairman of NBI, also said governance of every institution has come under scrutiny and the BFIs are no exception to it.
Lopa Rahman, corporate governance specialist at IFC South Asia; Sheela Rahman, Advocate at Supreme Court of Bangladesh, K Mahmood Sattar, former CEO of City Bank, and Grand Bank Nepal´s CEO Parshuram Kunwar Chhetri, among others, presented their papers related to corporate governance in the day-long seminar organized with the support of International Finance Corporation and Asian Development Bank.
source: republica,17 sept 2014
LINK
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