Improving Corporate Governance is Critical for Sound Financial System in Tajikistan | WPN World People News

A workshop on corporate governance practices for the shareholders, board members, and management of financial institutions was launched in Dushanbe by Jamoliddin Nuraliev, the First Deputy Chairman of the National Bank of Tajikistan (NBT) and Jan-Peter Olters, Country Manager for the World Bank in Tajikistan, on July 25.

“The quality of corporate governance in the financial sector is largely synonymous with any definition of ‘health’ of the system and its ability to absorb economic, technological, and other shocks,” said Jan-Peter Olters. “The combination of confidence, soundness, and the effective of the Board on the oversight over risk management defines the impact on economic development and growth. There is no sustainably growing economy without sound banks”.

A recently launched Strengthening the Financial Sector Program financed by the Swiss State Secretariat for Economic Affairs (SECO) supports the NBT in implementing key recommendations of the 2015 Financial Sector Assessment Program (FSAP), in efforts to strengthen financial sector soundness, minimize fiscal risks, promote investment, foster private-sector growth, and ensure financial inclusion. As part of the program’s technical advisory services, corporate governance in banks and micro-finance institutions will be improved through policy work, training programs, in-depth corporate assessment of select financial institutions and corporate governance manual development. These efforts help Tajikistan’s transition towards a stable and resilient financial system.

The workshop had over 150 representatives from banks and microfinance institutions in Dushanbe and Khujand and focused on issues around the importance of corporate governance for financial institutions and the role of supervisory boards and corporate secretaries in increasing the shareholders and organization value. It built on experiences made and lessons learnt since 2007, when the World Bank Group—through IFC’s Corporate Governance Project in Central Asia—started supporting Tajikistan in raising awareness, assisting companies in strengthening corporate governance, and developing a regulatory framework.

Tajikistan and the World Bank Group have partnered for over 25 years with the goal of reducing poverty and improving the quality of life for the citizens of Tajikistan. During this time, the World Bank Group has provided over US$1.5 billion in grants, highly concessional credits and trust funds to Tajikistan. The new Country Partnership Framework for 2019-23 aims at helping the country to take advantage of emerging opportunities, transforming its economy, and improving the livelihoods of its citizens.

Source: World Bank