Good governance in banking

STAFF REPORTER



Nedbank: As the Head: Governance and Compliance, what are you responsible for?

VI: I am responsible for governance and compliance which is a function that is integral to the culture and sustainability of Nedbank. As the head, my duty is to ensure that key compliance functions such as compliance with relevant legislation; the creation of a formal and structured compliance system and the creation, establishment, implementation and continued development of a compliance culture, are in place. I am also tasked with the coordination of all compliance functions within the NedNamibia Holdings Group, to give specific focus to regulatory and reputational risk within a broader risk management framework and to align Nedbank Namibia with international benchmarks and trends. On the ethics side of my role, I provide guidance and clarity on the code of ethics and the organisational policies and procedures. I also provide advice and guiding resolution in the case of a potential ethical dilemma or breach by any employee.

Nedbank: How is the governance and compliance landscape in Namibia as it relates to banking?

VI: The fact that the funds used by banks belong to depositors makes the bank responsible to a wide array of stakeholders which includes clients, suppliers, regulators and the community. The banking industry sits at the heart of the economic system and it has a special duty to ensure that its own governance and compliance is unimpeachable. Banking is surrounded by more laws, regulations and outside supervision than any other corporate sector.

Nedbank: What are some of the differences between our governance and compliance space here in Namibia, as compared to Africa and the rest of the world?

VI: Governance and compliance in the banking industry is extremely demanding due to the myriad laws and regulations which constitute our regulatory environment. Staying on top of your game requires an element of creativity by seeking innovative ways of communicating and implementing new regulatory developments and a lot research and reading to keep abreast with new developments. Failure to be effective could result in regulatory fines and sanctions which have an adverse effect on the profits, reputation, share price and value of the bank.

Nedbank: What do you think the face of governance and compliance within the banking industry will look like five to 10 years from now?

VI: Banks play an important role in building stakeholder trust across society, and as a result regulators globally have increasingly identified poor compliance and governance standards as a significant factor in banking failures. Consequently, increased laws and regulations are surrounding banks. Such will require greater emphasis on compliance and thus I believe that the governance and compliance function will become even more significant in banking. The compliance teams will need to be even more versatile, courageous and tech-savvy together with a Nostradamus type ability to predict trends and regulatory tendency.