At the conference organized by the Association in collaboration with the International Finance Corporation "IFC" on "Corporate governance for banks," Dr. Torbey initiated the workshops, where  meetings of banks’ seniors will be organized, and begin today with the International Finance Corporation. The aim of these workshops, according to Dr. Torbey, is "to identify in depth the foundations of the principles of good governance and to benefit from experience of international agencies in this area and experience some of the banks that have actually started to apply these principles in order to find what is most appropriate to the characteristics of our Lebanese banking sector in terms of business volume and the family nature".

The Governor of the Banque du Liban, Mr. Riad Salameh said that "the central bank was aware of the dangers of the lack of governance rules, and issued several circulars from 2000 to activate the control mechanisms as well as the principles of good governance in banks and the formation of their boards".

The conference was held at the premises of the Association of Banks in Lebanon in the presence of the board of directors, personalities, and banking and financial specialists. He stressed that "the trends that we consider are based on several criterias which includes:

1 - the composition of the board should reflect the representation of major shareholders to assume their responsibilities and diversification and professionalism.

2 - The CEO or owner borrowing from the same bank, as well as members of the Board is not desired.

3 - Control of the use of private funds of the bank and the adoption of diversity. In addition, the 10% limit was decided for each investment taken on equity with the recommendation to move away from derivatives and structured products whose warranty is assured by the bank’s owner personal money.

4 – Serious Identification of  customers who do not allow them to invest, speculate, borrow without the ability to borrow or without awareness of the risks, calling on banks to update the Banks’ statements of clients and their addresses.

5 - Focus on the role of independent auditors regarding the signing of the joint report and the quality of their work.

6 - Ensure that standards and measures required by the Banque du Liban  on the fight against money laundering are applied, and the need to notify BDL’s Special Investigation Committee of any account questionable or unethical practices as per the circulars of the Banque du Liban.

Dr. Torbey a déclaré: «Nous ne sommes pas dans le secteur bancaire libanais loin de l'atmosphère de la bonne gouvernance. Nous avons remarqué, les six dernières années, depuis 2005, l'intérêt grandissant des cadres supérieurs dans nos banques à identifier les forces et les faiblesses dans l'application internes des principes de bonne gouvernance lorsque 30 banques libanaises de type commercial (le nombre total des banques commerciales étant de 51 à l'époque), ont participle à l'étude organisée par l'Association des banques en collaboration avec la Société financière internationale (IFC) et exécutée par Ernest & Young.

Dr. Torbey said: "We are not in the Lebanese banking sector strangers from the atmosphere of good governance. We have noticed, the last six years, since 2005, the growing interest of executives in our banks to identify the strengths and weaknesses in the internal application of the principles of good governance where 30 Lebanese commercial banks (the total number of commercial banks is 51 at the time), have participated in the study organized by the Association of Banks in collaboration with the International Finance Corporation (IFC) and executed by Ernest & Young.

He also recalled that "the amendment of the Trade Act is an urgent need to conform to the regulations of foreign trade and to accompany the evolution of bank size and volume of their activities, and after the issuance of BDL’s main circular n°106 and recently changes in last April, and after the preparations for the application, it is necessary for banks’ senior management and the supervisory authorities to discuss issues raised by the concerned preparations".

Mr. James Christopher Razzouk, responsible for good governance in the International Finance Corporation (IFC), gave a brief presentation on the most important events that require the attention of banks’ executives, based mainly on experience of other countries.