Company:        ABC Bank Egypt
         PR Contact:     Hany Abouel Fotouh (Hany.AbouelFotouh@arabbanking.com.eg)
         Posted By:      Siba Sami Ammari (sibasamiammari@ameinfo.ae)
         Published:      Egypt, Sunday, September 07 - 2008 at 16:57 (GMT+4)
         Media Value:    US$ 3,250 (based on reach of audited readership)

                 Egyptian banker presents corporate
               governance in Islamic banks in S. Africa

        The Egyptian banker, Hany Abou-
        El-Fotouh, First Vice President
        and Corporate Governance
        Group Head at ABC Bank -
        Egypt, has recently delivered a
        presentation at Islamic Finance &
        Investment World - Africa 2008
        held in Johannesburg, South

            "The Islamic bank directors, management team and auditors should perform their
            professional duties having in mind satisfying the needs of the shareholders and
            Allah. Corporate governance enhances accountability, transparency and
        said Hany Abou-El-Fotouh, ABC Bank - Egypt First Vice President and Corporate Governance
        Group Head.

        Abou-El-Fotouh was speaking at Islamic Finance & Investment World - Africa 2008. He said
        that corporate governance is the system by which companies are directed and controlled as
        defined in UK Combined Code. It involves a set of relationships between a company's
        management, its board, its shareholders and other stakeholders.

        According to this definition, shareholders appoint directors of the board. The board oversees
        management, appoints CEO and is accountable to shareholders. The management team
        manages the organization and in turn is accountable to the board and shareholders for long-
        term shareholders value maximization.

© 1996-2008 AME Info FZ LLC. All rights reserved.   AME Info URL: http://www.ameinfo.com/168061.html   Page 1 / 3
        Addressing the delegates about the main stakeholders in Islamic banking corporate governance
        framework, Abou-El-Fotouh said, "The stakeholders include, among others, law- and rule
        makers; Central Bank; stock exchange; regulations, listing rules, Islamic Accounting Standards
        Board, employees, Murabaha Investment account holders; Murabaha financing partners;
        Current account creditors and the Islamic community. Islam itself is the most important

        About the Islamic concept of corporate governance, Abou-El-Fotouh said that it stresses the
        three main areas of accountability, transparency and trustworthiness. Additionally, good
        governance is consistent with Islamic principles, such as preventing gharar (risk, uncertainty,
        and hazard) and avoiding business transactions that cause injustice to any of the parties. Islamic
        financial institutions abide by the Shariah which governs the operations and transactions in
        accordance with Islamic principles derived from the Quran and Hadith. As to supervisions,
        Islamic financial institutions must have Shariah boards which review and ensure that all
        transactions, contracts, products and applications relating to the Islamic financial institution
        comply to Shariah rules and principles with the specific fatwa, rulings and guidelines that have
        been issued.

        Abou-El-Fotouh explained that every Islamic bank should be headed by an effective board,
        which assumes specific responsibilities. The vision, strategy and corporate values of the Islamic
        bank should be clearly specified and understood. He further pointed out that there should be
        an effective board composition, with a strong independent element where no individual or small
        group of individuals should be allowed to dominate the board's decision making. Additionally,
        there should be a clear division of responsibilities at the helm of an Islamic bank, which will
        ensure balanced and clear lines of role, responsibility, authority and accountability throughout
        the Islamic bank.

        He explained that an Islamic bank must have a formal and transparent process for the
        appointment of directors to the board and the appointment of CEO. Additionally, the directors
        must be persons of caliber, credibility and integrity with the necessary skills and experience
        and be able to devote time and commitment. The board as a whole, the directors and CEO
        must be subject to a formal and an ongoing assessment of their effectiveness.

        Abou-El-Fotouh concluded by saying that there is no 'single model' of corporate governance
        that can work well in every country. Each Islamic financial institution should develop its own
        model that can cater for its specific needs and objectives. Similarly, there is no hard and fast
        rule that can be applied in nurturing good governance culture in Islamic financial institutions.

        Notes and Media Contacts
        About Hany Abou-El-Fotouh:

        First vice president and group head of corporate governance and compliance, ABC Bank, Egypt, he is a leading
        expert on money laundering and terrorist financing controls in the Middle East-North Africa region with
        extensive experience in AML compliance and training. Founder of the Middle East Compliance Officers' Forum,
        he has been honored for his work in promoting compliance awareness in Egypt and the MENA region.
        Previously, he held top compliance positions in multinational institutions, such as HSBC Bank Egypt, Banque
        Saudi Fransi, and Oman International Bank.

        For further information, kindly contact:

        Hany Abou-El-Fotouh
        FVP Corporate Governance & Compliance Group Head
        Dir: +202-33372491

        Any opinions, advice, statements, offers or other information expressed in this article posted on the AME Info Web site are those of the
        authors and do not necessarily reflect the views of AME Info FZ LLC. AME Info FZ LLC is not responsible or liable for the content, accuracy
        or reliability of any material, advice, opinion or statement in this article. Articles posted on AME Info are automatically distributed to global

© 1996-2008 AME Info FZ LLC. All rights reserved.                        AME Info URL: http://www.ameinfo.com/168061.html                              Page 2 / 3
        news providers like Bloomberg, Financial Times, KnightRidder, LexisNexis and Reuters among others as well as indexed by major news
        aggregators such as Google News, Yahoo! and Newsnow for additional exposure.

                       AME Info FZ LLC - PO Box 502100, Al Thuraya Tower 1, 20th Floor, Dubai Media City United Arab Emirates
                         Phone: +971(4)3902700 - Facsimile: +971(4)3908015 - press@ameinfo.com - http://www.ameinfo.com

© 1996-2008 AME Info FZ LLC. All rights reserved.                  AME Info URL: http://www.ameinfo.com/168061.html                          Page 3 / 3

To top