The HKMA’s new guidance covers the role and qualifications of INEDs, and board practices relating to INEDs, to improve corporate governance in banks
As part of the response to the 2008 global financial crisis, policymakers and regulators have been working to improve and enhance corporate governance within banks, including measures regarding corporate culture, risk management frameworks and internal controls.
The Hong Kong Monetary Authority (HKMA) recently issued guidance on the Empowerment of Independent Non-executive Directors (INEDs) in the Banking Industry in Hong Kong (“the Guidance”). The Guidance is expected to be implemented by 14 December 2017, and covers the role of INEDs, board practices relating to INEDs, and suitable qualifications of INEDs on the board.
This document focuses on the highlights and implications of the Guidance, and how KPMG can assist with the implementation.