Governance and institutional arrangements CBL provides a tidy segue to my next theme – the importance of strong governance and institutional arrangements. As most who know me, I have always been a market-oriented economist. Unfortunately, there are many instances where market and self-discipline forces have been found wanting on their own.
Our review of banks’ attestation processes revealed significant weaknesses in board governance processes, with directors signing to the veracity of financial and risk compliance on the basis of no awareness of issues, rather than pro-active review and positive confirmation vouching for their integrity. The continued identification of historical compliance issues (e.g.