Putting effective risk management systems on top of the obligations of banks in accordance with the law

Law No. 194 of 2020 issuing the Central Bank and Banking System Law aims to raise the level of performance of the banking system, modernize and develop it, and support its competitive capabilities, in a way that qualifies it for global competition, to enhance the governance and independence of the Central Bank in a way that guarantees the activation of its role and the achievement of its objectives.

And Article 83 of the Central Bank Law issued No. 194 of 2020 specified 7 principles that all banks are committed to conducting their business in accordance with the following principles:

(a) Complying with the provisions of applicable laws, regulations, decisions, and instructions, and their internal policies, and reporting to the Central Bank any serious violations related to any of them.

(b) Develop effective strategies and systems for managing risks, preserving its assets, adequacy of its financial and non-financial resources, and developing the necessary plans to preserve its existence and continuity.

(c) Carry out its business with complete transparency and integrity.

(d) Exercising due diligence in accordance with banking principles and customs, and protecting customers’ rights.

(e) Applying rules of governance and internal control, job succession plans, promoting competition, and developing work systems and environment.

(f) Dealing with the Central Bank with credibility and transparency.

(g) Work to prevent conflicts of interest and establish effective frameworks for managing them.