Abu Dhabi Commercial Bank (ADCB) decided two years ago to take what must have seemed a big step at the time: it hired the International Finance Corporation (IFC), a private-sector arm of the World Bank, to look at its corporate governance practices.
In some ways, the decision to bring in the IFC was the extension of a process that began in 2004, when the Government-controlled bank underwent a sweeping internal restructuring. Divisional roles were clarified, as were decision-making methods and the system of reporting to the board of directors.
Improving corporate governance – rules intended to foster efficient decision-making and root out conflicts of interest – was a big part of the move. Still, it was an unconventional thing to consider at the time given that the local economy was booming, markets were sky-high and the impetus for conformity to higher standards was not quite the priority it is today.
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