Experts who attended the seminar called upon Islamic banks and financial institutions to implement the code of corporate governance in an effort to raise the bar in ethical standards.
The half-day seminar, entitled "Corporate Governance in Islamic Banking: Improving Performance and Managing Risk," was part of BAB's continuous efforts to hold interactive programs for the banking and finance industry in Bahrain.
"Throughout the region, corporate governance has become a major issue for businesses in an increasingly global economy to enhance competitiveness and performance," said Robert Ainey, executive director at BAB.
"As the field of Islamic banking continues to grow, it is essential to understand how corporate governance applies in the context of Islamic financial institutions, why it is different from conventional banking, and how to address Shariah-compliance and good governance," he added.
"Bahrain, being the global capital of the Islamic banks and financial institutions, is poised to implement a code of corporate governance by next year," said Jassim Al-Ajmi, an academician and expert on corporate governance.
Al-Ajmi, who addressed a session on the Bahrain Code of Corporate Governance and the Central Bank Regulations, said the code would continue to serve as a vital pillar of the government's commitment to implementing the best business model in the private sector.
"The draft of the code by the Ministry of Industry and Commerce and the Central Bank of Bahrain (CBB) as a joint effort shows the resolve of the government for keeping the highest possible standards for the private sector," Al-Ajmi said.
While referring to the financial crisis, he said there was nothing that could protect businesses from crises but best practices would help in providing a hedge against colossal damage.
"The global economic crisis has reminded us the need for effective risk management and corporate governance structures with suitable checks and balances," he said.
Organized by the BAB in conjunction with Center for International Private Enterprise (CIPE), the seminar attracted about two dozen stakeholders in addition to a key speaker from the CBB itself.
Danya Greenfield, program officer at CIPE, lauded the vision and commitment of the government in enforcing the corporate governance code as part of efforts to bring greater transparency and new standards of accountability.
