In line with The National Bank’s (“TNB”) group’s adoption of sound corporate governance practices and reinforced with a technical assistance agreement with the European Bank for Reconstruction and Development (“EBRD”), KPMG International was selected as the winning consultant to undertake a comprehensive corporate governance diagnosis and detailed action plan for TNB as well as its affiliate, the Palestine Islamic Bank (“PIB”). This study is supported by the UK Foreign Commonwealth and Development Office (FCDO) through EBRD’s Multi-Donor Trust Fund.
This all-inclusive project, spanning a time frame of approximately 18 months, underlines the importance of modern corporate governance and appropriate and effective risk management. The diagnosis will include the review of TNB and PIB’s current structure and organization, functions, responsibilities, reporting and accountability lines and support provided to the management bodies, board, board committees, “lines of defense”, risk management, internal control, financial and non-financial disclosures. This will be followed by recommendations to develop a wide-ranging action plan for corporate governance, monitor the implementation of the action plan and assist the TNB group in the implementation process.
With a history spanning three centuries, KPMG operates in 147 countries and territories and have more than 219,000 people working around the world providing Audit, Tax and Advisory services.
TNB group’s partnership with EBRD began in 2018, following the signing of an SME credit line and a Trade Finance limit with a sum of $6 million, which was followed by another MSME credit line in the year 2020 for $10 million to help support this sector in the face of the Covid-19 pandemic.
Acting TNB General Manager, Mr. Zaher Muala commented, “As one of the most comprehensive corporate governance assignments in the history of the Palestinian banking sector, I am confident that this vital project will significantly upgrade standards and guidelines within the TNB group. Effective corporate governance is essential to maintaining public trust and confidence in the Palestinian banking sector and provides a crucial anchor for sound risk management practices".