A Promising Endeavour for the Bank’s Commitment to Corporate Governance
Committed to better Corporate Governance, Bank of Beirut saw the strongest improvement in Governance & Integrity Rating, issued by Capital Concept, compared to listed Lebanese banks jumping 50 points to reach B- on the grade scale which entails a total of five grades and 12 sub-grades for its swift responsiveness to carry out all needed disclosure improvements that led to a radical enhancement in its grading within a two-year period.

Given the vital role of banks in the Lebanese economy and the importance of good governance for the successful operation of these institutions, discussion of corporate governance has been on the rise in Lebanon and banks are getting more involved. As per the World Bank Group’s International Finance Corporation, Corporate Governance “is the structures and processes by which companies are directed and controlled”. Good Corporate Governance is of major importance because it helps companies and banks to operate more efficiently, mitigate risk, improve access to capital, be more accountable, and have the tools to respond to stakeholders’ concerns.

Bank of Beirut has been active on the issue and developed its own guidelines in adherence with the policies set forth by Banque du Liban, the Banking Control Commission and the Association of Banks in Lebanon.

Always committed to the highest ethical standards, fostering transparency and disclosure in all material matters related to the Bank’s financial situation, performance, ownership and governance, Bank of Beirut’s Corporate Governance is driven by the Board of Directors’ principal duty to act in good faith, with prudence, and in accordance with a set of values and standards selected to safeguard stakeholders’ interests.

In this regard, Bank of Beirut is aiming to sign the Investors for Governance and Integrity (IGI) declaration as a commitment to promote sound corporate governance and to preserve shareholders’ rights, including minority shareholders. Per the declaration, signatories acknowledge their duty to act in the long-term interest of their beneficiaries. To date, the IGI declaration counts 10 signatories comprising 7 local banks, 2 investment funds/firms and one regional association.