The Central Bank of Barbados has revised its Corporate Governance Guideline in keeping with enhanced international standards by the Basel Committee on Banking Supervision. Issued earlier this month, the Guideline updates previous guidance to licencees issued in October 2006 and details out the Bank’s expectations in relation to the minimum standards for corporate governance practices by its licensees.
According to the Central Bank of Barbados, the Guideline “will form an integral part of the framework used by the Bank in assessing the effectiveness of corporate governance practices.” The Bank has also advised that it “will seek to establish that licensees have robust corporate governance policies and processes covering, inter alia, strategic direction, group and organisational structure, the control environment, responsibilities of the Board and Senior Management, compensation, and generally that the Board is carrying out its oversight responsibilities in an effective and efficient manner.”
The Guideline applies to all entities that are incorporated in Barbados and that are licensed under the Financial Institutions Act, CAP. 324 A, and the International Financial Services Act, CAP. 325. For the full text of the Guideline, click here.