Corporate Governance Principles for Banks (BCBS)
Effective corporate governance is critical to the proper functioning of the banking sector and the economy as a whole. Banks perform a crucial role in the economy by intermediating funds from savers and depositors to activities that support enterprise and help drive economic growth. Banks’ safety and soundness are key to financial stability, and the manner in which they conduct their business, therefore, is central to economic health. Governance weaknesses at banks that play a significant role in the financial system can result in the transmission of problems across the banking sector and the economy as a whole.
KING V CODE ON CORPORATE GOVERNANCE FOR SOUTH AFRICA (Draft)
The King V Code on Corporate Governance for South Africa establishes a comprehensive framework for ethical and effective leadership, emphasising integrated thinking and sustainable value creation within economic, social, and environmental contexts. It defines corporate governance as the pursuit of four main outcomes—ethical culture, performance, conformance, and legitimacy—through the actions of the governing body. Critical principles include ethical leadership, balanced governing body composition, clear delegation, and robust risk and compliance management. The Code advocates stakeholder inclusivity and responsible corporate citizenship grounded in Ubuntu philosophy, guiding organisations to create value for both themselves and broader society. Governance practices are structured around steering the organisation, approving policies, overseeing management, and ensuring accountability. The Code mandates an outcomes-based, “apply and explain” disclosure approach, allowing for proportional adaptation based on an organisation’s size and complexity. It addresses essential domains: ethics, strategy, reporting, risk, compliance, stakeholder management, information governance (including emerging technologies like AI), assurance, and remuneration. Organisations are encouraged to implement leading practices, foster diversity and competence, and ensure independent oversight of committees, with transparency and continuous evaluation central to its application.
King V Code on Corporate Governance for South Africa 2025
King V sets out an outcomes-based corporate governance code for South Africa focused on ethical culture, sustainable performance and value creation, prudent control and legitimacy within the organisation’s economic, social and environmental context. It defines universally applicable principles supported by flexible, proportional recommended practices rather than rigid rules, under an “apply and explain” disclosure regime. The Code emphasises ethical and effective leadership, integrated thinking, responsible corporate citizenship, stakeholder inclusivity and robust oversight of risk, technology, remuneration, assurance and stakeholder relationships to support long-term systems value creation.
King V Code on Corporate Governance on a Page
King V on a Page distils the Code into thirteen principles that define what governing bodies should achieve through good governance practices. These principles cover ethical and effective leadership, organisational ethics, sustainable value creation, transparent reporting, and a well‑balanced governing body with clear delegation to committees and management. They also address governance of risk, compliance, data, information and technology, fair and responsible remuneration, assurance, and stakeholder inclusivity. Together, these principles, supported by recommended practices, aim to realise four governance outcomes: ethical culture, performance and value creation, conformance and prudent control, and legitimacy.
King V on Corporate Governance – Foundational Concepts
The King V Foundational Concepts document explains the definition and purpose of corporate governance, positioning it as ethical and effective leadership aimed at four governance outcomes: ethical culture, performance and value creation, conformance and prudent control, and legitimacy. It clarifies King V’s voluntary legal status, its universal principles and proportional, outcomes-based practices, and the “apply and explain” disclosure regime supported by a dedicated Disclosure Framework. The paper sets out underpinning philosophies of systems value, integrated thinking, Ubuntu-Botho, corporate citizenship, stakeholder inclusivity, double materiality and integrated reporting as core lenses for interpreting and applying the Code.
King V Code on Corporate Governance – Disclosure Framework
The King V Disclosure Framework operationalises the “apply and explain” regime by prescribing how organisations must disclose application of the Code’s principles, exceptions on recommended practices, and conclusions on the four governance outcomes. It requires governing body approval, annual review and publication alongside other external reports, and allows cross‑referencing to integrated and other reports to avoid duplication. For each of the thirteen principles, it sets out an exception declaration plus specific qualitative disclosures, focused on satisfaction statements, key activities, and governance judgements needed for stakeholders to assess the quality of governance.
KING V Code on Corporate Governance – Background, Objectives and Key Changes
The King V background paper explains that the review of King IV responds to a far more complex context, including climate change, social inequality, geopolitical instability, digital disruption and evolving sustainability reporting standards. The objectives were to align with new regulatory and reporting developments, simplify and clarify the Code, and standardise disclosure via a separate Disclosure Framework. Key changes include reducing the principles from 17 to 13, sharpening recommended practices, clarifying independence criteria and committee composition, strengthening the governance of data, information and technology (especially AI), and explicitly adopting double materiality for sustainability disclosures.