Egyptian Banker Presents Corporate Governance in Islamic Banks in S. Africa

Abou-El-Fotouh was speaking at Islamic Finance & Investment World – Africa 2008, captivated endure anniversary in Johannesburg, South Africa. He said that accumulated babyminding is the arrangement by which companies are directed and controlled as authentic in UK Combined Code. It involves a set of relationships amid a company’s management, its board, its shareholders and added stakeholders.

According to this definition, shareholders accredit admiral of the board. The axle oversees management, appoints CEO and is accountable to shareholders. The administration aggregation manages the alignment and in about-face is accountable to the axle and shareholders for abiding shareholders amount maximization.

Addressing the assembly about the capital stakeholders in Islamic cyberbanking accumulated babyminding framework, Abou-El-Fotouh said “ the stakeholders include, a allotment of others, law- & aphorism makers; Central Bank; banal exchange; regulations, advertisement rules, Islamic Accounting Standards Board, employees, Murabaha Investment anniversary holders; Murabaha costs partners; Current anniversary creditors and the Islamic community. Islam itself is the a lot of important stakeholder, he added.

About the Islamic abstraction of accumulated governance, Abou-El-Fotouh said that it stresses the three capital areas of accountability, accuracy and trustworthiness. Additionally, acceptable babyminding is connected with Islamic principles, such as preventing gharar (risk, uncertainty, and hazard) and alienated business affairs that could cause abuse to any of the parties. Islamic banking institutions access by the Shariah which governs the operations and affairs in accordance with Islamic attempt acquired from the Quran and Hadith. As to supervisions, Islamic banking institutions have to accept Shariah boards which analysis and ensure that all transactions, contracts, articles and applications apropos to the Islamic banking academy accede to Shariah rules and attempt with the specific fatwa, rulings and guidelines that accept been issued.

Abou-El-Fotouh explained that every Islamic case should be headed by an able board, which assumes specific responsibilities. The vision, action and accumulated ethics of the Islamic case should be acutely defined and understood. He added acicular out that there should be an able axle composition, with a able absolute aspect area no alone or baby accumulation of individuals should be accustomed to boss the board’s accommodation making. Additionally, there should be a bright analysis of responsibilities at the captain of an Islamic bank, which will ensure counterbalanced and bright curve of role, responsibility, ascendancy and accountability throughout the Islamic bank.

He explained that an Islamic case have to accept a academic and cellophane action for the adjustment of admiral to the axle and the adjustment of CEO. Additionally, the admiral have to be bodies of caliber, believability and candor with the all-important abilities and acquaintance and be able to allot time and commitment. The axle as a whole, the admiral and CEO have to be accountable to a academic and an advancing appraisal of their effectiveness.

Abou-El-Fotouh assured by adage that there is no “single model” of accumulated babyminding that can plan able-bodied in every country. Each Islamic banking academy should advance its own archetypal that can baby for its specific needs and objectives. Similarly, there is no harder and fast aphorism that can be activated in adorning acceptable babyminding ability in Islamic banking institutions

About Hany Abou-El-Fotouh:
First carnality admiral and accumulation arch of accumulated babyminding and compliance, ABC Bank, Egypt, he is a arch able on money bed-making and agitator costs controls in the Middle East-North Africa arena with all-encompassing acquaintance in AML acquiescence and training. Founder of the Middle East Compliance Officers’ Forum, he has been accustomed for his plan in announcement acquiescence acquaintance in Egypt and the MENA region. Previously, he captivated top acquiescence positions in bunch institutions, such as HSBC Bank Egypt, Banque Saudi Fransi, and Oman International Bank.