Seminar in Muscat on Proper Performance at Banking and Financial Institutions
02 Jun 2003The Central Bank in Muscat, Oman, organized a seminar the day before yesterday on the proper performance in the work of banking and financial institutions. It was held under the patronage of Mr. Hamoud Sanjour Alzinjali, executive director of the Omani Central Bank and administered by Mr. Talal Abu-Ghazaleh, chairman of the Commission on E-Business, Information Technologies and Telecoms of the International Chamber of Commerce (ICC) and chairman of the Arab Society of Certified Accountants (ASCA).
The seminar was attended by the executive director of the General Assembly for the Stock Market, chairpersons and directors of banking and financial institutions.
The dialogue focused on the board of directors and executive administration, in addition to the role of the central bank in the operations of banking and financial institutions. Abu-Ghazaleh pointed out to the benefits of setting standards for organization of companies, adding that “a company that is properly organized is more sensitive to the needs of and goals of its contributors and enhancing their confidence, as this organization is an effective tool that prevents fraud. This organization also makes the company more sensitive to factors that may endanger its performance.”
He added that by reducing the level of danger at work, it is easier to reach financial markets, in addition to the fact that market acceptance improves for those who purchase its services and good. He pointed out in this context to the risk associated with investment that is tied into the security, political and economic situation.
Abu-Ghazaleh said: “High investment risk is due to a decline in internal investment, which leads to an increase in the flow of external capital. Our region was for numerous years a pure source of capital, so what if the situation were reversed?”
Abu-Ghazaleh explained that we live in the electronic age such that information can be recorded, modernized and indexed effectively, and the communications of a company must be considered a part of this success.
As for the best practice for the roles and responsibilities of the board of directors and the chairman, he said that all members need to be responsible, and that control in formulating decisions isn’t limited to any particular individual or group. He added that there should be clear domains of responsibilities and powers, and that one of the main responsibilities of the board of directors is the formulation of the general policy such that it is clear and available to the administration in order to achieve value ethically and effectively.
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