Jonathan Lyon, CEO, Burgan Bank Kuwait
“If there are two lessons that one can learn from the US sub-prime mortgage crisis that triggered off what has now become a global financial meltdown with wide-spread ramifications, its (1) the increasing need for financial literacy amongst all sections of society, and (2) the need for strong corporate governance compliance by private sector players, particularly financial and banking institutions.
As both governments and investors rely upon increased regional privatization to create long-term returns and social wealth, the private sector players need to review, implement and monitor their financial accountability, transparency, internal control processes and systems, and risk diligence & mitigation more aggressively now than ever before. We need an independent/quasi-government regulator that will align the growth potential of the private sector with Corporate Governance guidelines stipulated by our Central Banks, our stock exchanges, the OECD, the World Bank, the Basel Accords and other globally accepted best practices. And while doing so, we need to bear in mind that the Arab economy is very distinctive in its composition and its revenue generation streams (for instance, in Kuwait, SMEs account for close to 80% of the country’s economic backbone) which present unique challenges and opportunities within which to tailor and implement relevant Corporate Governance measures.
We live in times which are challenging, but which still hold potential. Many of us are expanding into new regional markets. Many of us have been building a corporate reputation that attracts local and international investments. And as we build a stronger Arab region that will increasingly play a critical role in world economy; we need to consider more seriously Corporate Governance and Financial Literacy to ensure the benefit of all sectors of the economy and society itself.”
Jonathan D. Lyon is the CEO and Chief General Manager of Burgan Bank, which is amongst the leading commercial banks in the state of Kuwait. The Bank was recognized as one of the leading banks in the region to uphold sound corporate governance policies and best practices at the ‘Regional 2008 Bank Corporate Governance Award’ held by the Hawkamah Institute for Corporate Governance in association with the Union of Arab Banks. This is the second consecutive year that Burgan Bank has been conferred this Award; the previous year, it emerged as the winner of the region’s first-ever ‘Hawkamah UAB Bank Corporate Governance Award 2007’, having contended with over 40 banking institutions across the region for the coveted title.
i think jonathan’s spot on with what he points out about FL and CG. being financially literate is fun.
I agree with Jonathan. What’s happened in financial markets the world over could’ve well been averted had stringent CG ethics been implemented. It’s appalling that listed companies that sought investor confidence didn’t have requisite checks in place to command/protect investor confidence in the first place! Take the case of the Wall Street investment banks and what’s happened recently to India’s Satyam. If we want to leave an indelible mark on the world’s economic map now and in the future, the Arab private sector should do all that it can to check accountability and transparency.