World Bank Corporate Governance Group Boosts Financial Sector Transparency
The World Bank’s Corporate Governance Group has launched a series of initiatives aimed at strengthening the corporate governance practices of financial institutions worldwide.
Strengthening Corporate Governance Practices
The group, which provides advisory services to countries seeking to improve their corporate governance policies and practices, has developed a range of tools and frameworks to diagnose and strengthen the governance of state-owned banks, micro-finance institutions, and financial cooperatives. These initiatives include:
- Developing director nomination, remuneration, and evaluation policies
- Creating performance monitoring frameworks and dividend policies
- Assisting countries in developing a robust legal and regulatory framework for corporate governance
Bank Governance Reviews
The group has conducted bank governance reviews in over 10 countries, including:
- Bosnia and Herzegovina
- Economic Community of Central African States
- Georgia
- Moldova
- Sri Lanka
These reviews have resulted in changes to supervisory approaches and the legal and regulatory framework.
Micro-Finance Institutions and Financial Cooperatives
In addition to its work with state-owned banks, the group has developed tools to assess the corporate governance framework applicable to micro-finance institutions and financial cooperatives. Reviews have been carried out across the world, including:
- Peru
- Colombia
The group has also focused on strengthening the governance of municipal cooperatives, such as those in Peru.
Corporate Governance Key to Capital Market Development
Good corporate governance is a critical component of capital market development, reducing emerging market vulnerability to financial crises, transaction costs, and the cost of capital. The group has developed tools to identify the strengths and weaknesses of the corporate governance framework applicable to listed and unlisted companies.
Technical Assistance Programs
The Corporate Governance Group has provided technical assistance programs in more than 10 countries across different regions, including:
- El Salvador
- Guatemala
- Colombia
- Peru
- Kenya
- Ghana
- Vietnam
- Lao PDR
Reports on the Observance of Standards and Codes (ROSC)
The group conducts corporate governance country assessments under the ROSC initiative, which aims to strengthen corporate governance policies and practices of listed companies in emerging markets. To date, the group has conducted ROSC assessments in close to 60 countries.
Contact Information
For more information on the World Bank’s Corporate Governance Group, please contact Sunita Kikeri.