Corporate governance : the case of standard chartered bank in Lebanon

Abstract

Corporate governance in the case of the banking industry reveals that laws, shareholder interests, bank interests and sound economics are factors to take into account. Banks are to balance profits with regulatory requirements and sound economics so as to be successful and management practices to be considered include adequate representation of shareholders, allowing for monitoring, minority control and compliance with legal procedures. While corporate governance is still an ambiguous subject and a fresh topic for most of the companies in Lebanon, it is fundamental to present a general and comprehensible explanation about corporate governance, and to discuss its relation with the banking sector. The aim of this thesis is to highlight the importance of corporate governance, especially in the banking sector, and to study its application by Standard Chartered bank Sal in Lebanon, while stressing the nuances between the requirements of the local regulator, Standard Chartered Bank PLC's policies and procedures and International Accords such as BASEL II. I will take advantage of my working experience with Standard Chartered Bank to thoroughly analyze the composition of Standard Chartered Bank PLC, its corporate governance policies and procedures, and its application in the subsidiaries, particularly in Lebanon. Interviewing the bank's officials as well as consulting the bank's annual report would add a great value to this research. Although there will be some differences between the applied policies and procedures at Standard Chartered Bank Sal and the local regulator's requirements, it will be obvious by the end of this thesis, that the bank is satisfying both the Group and the Central Bank's requirements, and that the model adopted by the bank is a good example to be implemented by the banks that wish to expand outside the Lebanese market.