Efficient Corporate Governance for Financial Sector Development
This document is based on a webinar jointly organized by the MFW4A Secretariat and KPMG in July 2020. This webinar examined the strong relationship between improved corporate governance and the development of the financial sector in all its subsets. As the Covid-19 pandemic is straining the resilience of the financial sector in Africa, it is useful to recall that corporate governance is a key factor in strengthening the capacities of financial sector to cope with episodes of crisis. The unanimous recognition of corporate governance as a key ingredient for financial sector development has compelled the main financial regulators which are central banks, insurance commissions, pension commissions and securities market commissions to adopt regulations and principles of good corporate governance in areas under their purview. Good governance gives priority to good risk management. In recent years, a number of initiatives and regulations have been launched, including the Basel IV directives aimed at promoting good governance in the banking sector through better risk management. The same applies to the Solvency II directive for the insurance sector, the guidelines of governance good practices issued by the international organization of pension supervisors and directives on good governance of listed companies.