11 November 2008
The Third Annual Conference of Hawkamah - the Institute of Corporate Governance - yesterday issued the Doha Declaration on its concluding day, calling for the implementation of more robust corporate governance frameworks to maintain the stability of the region's financial system in the face of the global financial crisis.
Signed by policymakers, regulators, global institutions and business leaders from across the region and internationally, the Declaration made extensive policy recommendations to address the financial crisis both globally and in the Mena region.
Dr Nasser Al Saidi, Executive Director of Hawkamah, said: "Corporate governance is critical to the region's ability to maintain stable financial systems and minimise the contagion effects of the financial crisis. The Mena markets stand to gain by developing institutions and corporate governance frameworks that bolster investor trust through improved disclosure and transparency standards and rule of law. We cannot afford to ignore corporate governance; too much is at stake in our stock and credit markets."
The Doha Declaration emphasised the importance of effective creditor rights and insolvency systems and the development of strong rescue and restructuring frameworks. These frameworks, it said, should be urgently modernised to facilitate the rescue and restructuring of viable enterprises facing temporary and potential distress. The Declaration also stressed the governance and accountability of regulators.
Another key recommendation was to extend the regulatory and supervisory powers of central banks to investment banking and related non-bank financial intermediation. It also urged a review of regulations governing credit rating agencies as well as reform to address the shortcomings of risk management frameworks.
The Doha Declaration highlighted that Islamic finance, which has been resilient to the financial crisis, is a viable complement to conventional financing with its equity risk sharing and ethical investment principles.
The Third Annual Conference of Hawkamah - the Institute of Corporate Governance - yesterday issued the Doha Declaration on its concluding day, calling for the implementation of more robust corporate governance frameworks to maintain the stability of the region's financial system in the face of the global financial crisis.
Signed by policymakers, regulators, global institutions and business leaders from across the region and internationally, the Declaration made extensive policy recommendations to address the financial crisis both globally and in the Mena region.
Dr Nasser Al Saidi, Executive Director of Hawkamah, said: "Corporate governance is critical to the region's ability to maintain stable financial systems and minimise the contagion effects of the financial crisis. The Mena markets stand to gain by developing institutions and corporate governance frameworks that bolster investor trust through improved disclosure and transparency standards and rule of law. We cannot afford to ignore corporate governance; too much is at stake in our stock and credit markets."
The Doha Declaration emphasised the importance of effective creditor rights and insolvency systems and the development of strong rescue and restructuring frameworks. These frameworks, it said, should be urgently modernised to facilitate the rescue and restructuring of viable enterprises facing temporary and potential distress. The Declaration also stressed the governance and accountability of regulators.
Another key recommendation was to extend the regulatory and supervisory powers of central banks to investment banking and related non-bank financial intermediation. It also urged a review of regulations governing credit rating agencies as well as reform to address the shortcomings of risk management frameworks.
The Doha Declaration highlighted that Islamic finance, which has been resilient to the financial crisis, is a viable complement to conventional financing with its equity risk sharing and ethical investment principles.
By Staff Writer
© Emirates Business 24/7 2008
