Non-Banking Financial Activities

plays a vital role in boosting the investment climate and offers several benefits
to companies and their shareholders.

governance improves the efficiency of financial markets through a raft of its
instruments, namely:

·       Application of international accounting and auditing

·       Formation of independent and effective audit committees.


·       Conducting regular internal and external audits.


·       Implementing transparency principles and full disclosure of
financial information.


·       Adopting Effective risk management practices.


·       Establishing sound governance framework for the Board of

Ø  The full implementation of governance instruments
helps in:

·       Increasing confidence of stakeholders in the financial market.


·       Attracting more investment.


·       Reducing fraud and misconduct risks.


·       Enhancing stability in the financial system.


Ø  Benefits of Corporate Governance in Non-Banking
Financial Activities

Improve efficiency of corporate

·       Boost
investor confidence.

Reduce capital cost.

Increase market value of

·       Enhance
governance of non-banking financial activities.

Corporate governance is a shared
responsibility among all company stakeholders, including the board of
directors, executive management, shareholders, investors, creditors, employees,
and the community.

By implementing corporate
governance principles, companies can create a more attractive investment
environment and achieve long-term benefits for all stakeholders.

Ø  For more
details, please check FRA BoD Decree No. 100/2020 on governance rules for
companies engaging in non-banking financial activities.

Ø  Egyptian
Corporate Governance Guide.

Ø  Corporate
Governance Services Guide.

Last modified: May 15, 2024

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