| Abstract | Following consultation with the banking industry, the new Guideline on Corporate Governance of Locally incorporated Authorised Institutions was formally issued by the Monetary Authority under section 7(3) of the Banking Ordinance on 19 May 2000. This Guideline, which superseded the Best Practices Guide issued by the Monetary Authority in 1991 on the duties and responsibilities of directors of authorised institutions, sets out the minimum standards that locally incorporated institutions are expected to follow in respect of corporate governance. This article explains the importance of corporate governance for the banking industry, summarises the role and responsibilities of the board of directors and other key points of the Guideline, and describes the Monetary Authority's approach in monitoring authorised institutions' compliance with the Guideline. |
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