The new regulations define independent board members and the conditions of such independence in order to enable them to make impartial and objective decisions for the bank’s best interest, enhance trust in the bank and strengthen its financial stability.
Sunday 15, September 2019 BY KUDAKWASHE MUZORIWA
The Central Bank of Kuwait (CBK) has amended governance regulations for Kuwaiti banks, allowing them to add independent members to their boards of directors and subcommittees.
Dr Mohammed Yousef Al-Hashel, the Governor of CBK, said that independent members to banks’ board of directors will enhance board members’ independence as a basic principle of sound governance practises.
The amendments also allow a minimum of two independent members from 30 June 2020, then four from 30 June 2022 to avoid unexpected demand for independent members and allow gradual implementation of the decision, says Al-Hashel.