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News & Events

[ 20-08-2014 ]
Good Corporate Governance Depends On Balanced Board Composition Says Bank Negara
KUALA LUMPUR, Aug 9 (Bernama) -- Good corporate governance depends on the existence of a balanced pool of longer-serving individual directors and new directors in a company, said Bank Negara Malaysia.

Deputy Governor Datuk Muhammad Ibrahim said boards were often confronted with the challenge of achieving an optimal balance between the need for continuity and the need for fresh perspective.

"If not balanced appropriately, this can lead to complacency, and as a result, the institution would remain uncompetitive," he said in a keynote address presented at a workshop "On the Challenges of Corporate Governance in the Financial Services Sector" on Wednesday.

Among the challenges for corporate governance included the increasing complexity of the operations of financial institutions and financial groups.

Muhammad said the oversight of financial groups with cross-border operations was more complex and demanding, as groups have a highly diverse range of businesses, products and services, and diversified clientele base.

In dealing with this, he said a more diverse board, reflecting the financial group's cross-border presence, might also be necessary.

"As the operating environment becomes more complex, it is not an impossibility that sometime in the near future there would be a demand for 'professional directors'," he added.

-- BERNAMA