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IFC presents the corporate governance screening tool for banks

26 November 2010 12:29 (UTC +04:00)

Baku. Nijat Mustafayev â€“ APA-Economics. IFC, a member of the World Bank Group, presented today the Corporate Governance Screening tool for banking organizations which describes the corporate governance screening process that will help banks to assess corporate governance in their client companies.

The main goal of the Screening tool is not to purely assess the corporate governance of a bank client, but to make the bank aware of the risks that can arise in dealing with a company with poor corporate governance practices. The screening process include assessing five main components: commitment, board practices, the control environment, transparency and disclosure, and shareholders rights.

Compliance with the best corporate governance practices mentioned in this screening tool does not mean that there will be no risks associated with internal control, board practice as this is only a short assessment which cannot detect all potential and existing problems. This tool can only help the loan officer to highlight any key areas of concern and detect major problems.

Up to 35 individuals from 27 organizations participated at the presentation.

This initiative was funded by the Swiss Government, the State Secretariat for Economic Affairs (SECO)