SHARQ Yemeni Bank for Islamic Microfinance has a general governance framework that regulates the relationships between the Board of Directors, executive management, stakeholders, and other relevant parties, in accordance with the bank’s strategic directions.
The bank’s governance framework aims to define the bank’s institutional goals, achieve sustainable development, manage the bank’s operations safely, protect the interests of depositors, fulfill the duty of care towards shareholders and other stakeholders, and ensure the bank’s compliance with applicable legislation and internal bank policies.
The general framework for corporate governance ensures fair and equal treatment among all parties and emphasizes providing all parties with important information about the bank’s activity, and the commitment of the bank’s management and Board of Directors members to their responsibilities towards the bank and the rest of the shareholders and depositors. The bank has prepared a governance manual in accordance with the requirements of the Corporate Governance Guide for Banks in the Republic of Yemen issued by the Central Bank of Yemen, including the principles and standards of compliance, accountability, integrity, and the definition of roles and responsibilities and the separation of duties, in line with best practices followed in financial institutions. This ensures the achievement of the main objectives of governance, the most important of which are:
Enhancing Transparency: By providing accurate and up-to-date information to all stakeholders, including customers, investors, regulatory authorities, and the community in general.
Achieving Accountability: Activating accounting mechanisms to ensure an effective response to decisions and actions, and distributing roles while clearly defining responsibilities.
Improving Performance Efficiency: Improving the quality of services provided and increasing customer satisfaction, with a focus on achieving the bank’s strategic goals.
Commitment to Values: Ensuring that all activities and operations comply with the rules of Islamic Sharia and ethical principles.
SHARQ Yemeni Bank for Islamic Microfinance has embodied the principles of governance by adopting the following:
Board of Directors: Responsible for strategic direction and performance oversight, appointing executive management, and approving key policies.
Specialized Committees: Represented by the Audit Committee, Risk and Compliance Committee, Nominations and Remunerations Committee, and Governance Committee, to support the Board of Directors in its duties.
Sharia Supervisory Board: Monitors the bank’s commitment to the provisions of Sharia and ensures the bank’s compliance with Sharia regulations in procedures, products, and services.
Executive Management: Exercises its duties independently with clear powers and is responsible for implementing approved policies and decisions, managing the bank’s daily operations to achieve strategic goals, and is accountable for its performance before the Board of Directors and reports to it.
Risk Management: To identify, assess, and manage the financial, operational, legal, and reputational risks facing the bank, and to implement appropriate policies and procedures to deal with them.
Internal Audit: The bank works to establish a strong system of internal control and subjects its operations to internal audit, including evaluating financial and accounting operations and ethical conduct standards, and providing mechanisms for detecting any violations.
Independent External Audit: Reviews the bank’s operations and expresses its opinion impartially.
Social Responsibility: The bank’s commitment to enhancing social responsibility through participation in community initiatives and supporting sustainable development.