2002-08-14: Compliance and corporate governance review of major banking groups
Last Modified Date:
2020-10-08, 08:14 PM
Media > Media Releases
In the wake of recent international corporate failures, and following the recommendations of the King Committee on Corporate Governance ("King II") of March 2002, the South African Reserve Bank ("SARB") and the five major banking groups in South Africa (Absa Group Limited, FirstRand Bank Holdings Limited, Investec Group Limited, Nedcor Investment Bank Holdings Limited and Standard Bank Group Limited) are determined to ensure that our banking sector retains and builds on its reputation internationally by proactively addressing the maintenance of the highest corporate-governance standards. To this end, the SARB and the banking groups have agreed to undertake a review to assess compliance with corporate-governance best practices, as laid down in the Banks Act, 1990 (Act No. 94 of 1990), the Regulations relating to Banks and the recommendations of King II. The purpose of the review is to establish to what extent an adequate and effective process of corporate governance within each group has been established and maintained, and to what extent the overall effectiveness of the process can be improved and enhanced by the board of directors and the regulatory authorities. The intention is to perform the same review for the small and medium-size banks on completion of this review. The review will be undertaken by a committee, under the chairmanship of Advocate John Myburgh SC. Other members of the committee are: Advocate Hermann Krull (Divisional Head: Bank Supervision Department, SARB).Advocate Jabu Kuzwayo (Assistant General Manager: Legal Section: Bank Supervision Department, SARB).Ms Judy Teixeira (Analyst: Bank Supervision Department, SARB). The scope of the review will be the same for all banks. The proactive identification of any deficiencies will allow the respective banks to implement the findings, in order to be in line with international best practice and minimum standards. It should be stressed that the review is undertaken with a view to measuring to what extent the South African banking industry complies with international standards and norms as regards good corporate governance and best practice, and to ensure that the South African banking industry's credibility as a competitor in the global market is maintained. The overall findings will be released following completion of the review. All enquiries relating to this review may be directed to the Registrar of Banks, Mr C F Wiese, at telephone number (012) 313-3770.