Corporate Governance

BANK LICENSING, SUPERVISION AND SURVEILLANCE
Guideline No. 01-2004/BSDCORPORATE GOVERNANCE
In line with the objectives and commitments enshrined in the mid-term Monetary Policy Statement regarding the issuance
of certain guidelines to the Banking Sector and the public at large, I hereby issue two guidelines as follows:
1.Bank Licensing, Supervision and Surveillance – Corporate Governance2.Bank Licensing, Supervision and Surveillance – Minimum Internal Audit Standards in Banking InstitutionsPREFACE1INTRODUCTION2SOUND
CORPORATE
GOVERNANCE3IMPLEMENTATION
OF THE
GUIDELINE4Dr. C.L. Dhliwayo
Deputy Governor – Bank Licensing, Supervision & Surveillance,
Exchange Control & Anti – Money Laundering
1EFFECTIVE
DATE Preface
1.Short title1.1Corporate Governance2.Authorisation2.1The Guideline is issued under the authority of section 45 of the Banking Act [Chapter 24: 20].3.Application3.1This Guideline applies to all banking and non banking institutions. Wherever the term “bank(s)” or “banking institution(s)” is used in the
guideline, it shall also be read to include non-bank financial institutions that are licensed and supervised by the Reserve Bank including
Bank Holding Companies.3.2The Guideline covers a variety of governance related issues. However should there be additional areas arising out of the particular
circumstances of the bank that merit coverage, the board will be responsible for ensuring that relevant governance systems and practices
are implemented.4.Definitions(a)The following terms used in this Guideline shall be taken to have the meaning assigned to them hereunder.4.1’Compliance Function’ means an independent function that identifies, assesses, advises on, monitors and reports on the institution’s
compliance risk, that is, the risk of legal or regulatory sanctions, financial loss, or loss to reputation an…