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The recent decision of the UAE central bank, regarding a written approval from the bank prior to nomination to banks boards’ membership, was met with wide acceptance and commendation from bankers. They assured that this decision is in the interest of the banking sectors as it grantees the selection of the members to the boards with suitable qualifications and experience in the area of business and banking which will safeguard the interests of shareholders, stakeholders and increase transparency.
They mentioned that the decision represents and shows the effective role of the central bank in achieving stability in the banking sector. They also pointed that the decision will lead to energizing the role of the boards of directors through the implementation of the standards set by the central bank. Mr. Awni Alami, commended the decision, saying that the central bank has the right to reject a nomination in certain cases when it does not meet the requirements. Qualified bankers in the boards will contribute to the effectiveness of the decisions taken by the board, and this will contribute to the success of the banks and more profits.
In the meantime, Mr. Jamal Al Jassmi, General Manager of EIBFS, mentioned that this recent decision by the central bank comes within the effort of the central bank to develop regulations aiming at enhancing banks stability. It is considered a good initiative that directly aims at invigorating the role of banks boards which is in the interest of banks, Implementing the central bank's decision will definitely contribute to improving the decision making process and leads to good decisions as it brings to the boards highly qualified individuals from the banking and business sectors. Mr. Mahmoud Hadi, General Manager of systems and operations, Dubai commercial bank, also expressed his satisfaction with the central bank decision, and mentioned that it is timely.
Mr. Haytham Orabi, CEO, "calfine for alternative investments emphasized that from the perspective of transparency and governance in the companies and banks, the central bank's decision is in the interest of banking sector, he added that the approval of the central bank for the nomination to the board membership is a necessary condition to prevent conflict of interests and aims to achieve stability in the banking sector as well as the public interest. |