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The Role of the Bank of Sierra Leone in the Corporate Governance of Commercial Banks There has been a renewed interest in corporate governance in recent years, in the wake of the collapse of a number of companies in major economies, amidst corporate scandals. On assumption of duty in 2009, the Governor, Mr Sheku Sambadeen Sesay, stated the objective of professionalising and modernising the financial sector in line with international best practice, with a special emphasis on corporate governance which in the view of the Governor, was key towards having a robust and viable financial sector. Mindful of this, the Bank of Sierra Leone in its role of supervisor and regulator of the Banking sector, over the last five years set about piloting the enactment and introduction of laws, regulations and directives for the effective supervision of Commercial Banks, with a view to developing a viable financial sector in Sierra Leone suitable for doing business and for investment. These include the Payments System Act 2009, the Credit Reference Act 2011, the Bank of Sierra Leone Act 2011, the Banking Act 2011 and the Anti- Money Laundering and Combating and Financing of Terrorism Act 2012. A key provision in the Bank of Sierra Leone Act 2011 is in Section 6 thereof, which stipulates that the Bank shall be an autonomous institution which shall not be subject to the control or direction of any person or authority. It is the Bank’s autonomy that has been instrumental in allowing it to implement corporate governance reforms without hindrance or interference from any external source. In the context of corporate governance, the relevant legislation introduced with regard to the effective supervision of commercial banks, is the Banking Act 2011. Its chief objective is the protection of depositors, and the creation of a safe and sound banking system. A novel feature of the Banking Act 2011 is a whole part devoted to issues of corporate governance. The very appointment of a board director or executive officer of a commercial bank is subject to approval by the Bank of Sierra Leone after the conducting of a ‘fit and proper person’ test by the latter. Of particular importance are the ‘ The Bank of Sierra Leone has greatly enhanced the corporate governance standards of commercial banks, which in turn has boosted public confidence in the banking industry in Sierra Leone.’


CEP template 2012
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