Here’s a look at SAMA board formation method, duties

Logo of  Saudi Central Bank (SAMA).

King Salman bin Abdulaziz Al Saud issued on June 8 a royal order to appoint non-government employees as board members of the Saudi Central Bank (SAMA).

According to SAMA’s regulations, its board comprises of the governor (chairman), deputy governor (two members) and five non-government employees.

Non-government employees are nominated after an agreement between the governor and the Minister of Finance. Accordingly, a royal order is issued for their appointment Board membership term is seven years, and it is renewable for same duration.

The conditions to qualify for SAMA’s board member stipulate that the person must be a Saudi national and have experience in the banking sector.

The person must not occupy any position with a public entity or any of the financial institutions or be one of its auditors. The nominee must not be the owner or agent of an external auditor’s office.

The board of directors is responsible for supervising SAMA’s business and management in general. It has all the powers necessary to achieve the bank’s objectives.

The board has the right to set the necessary laws, instructions, regulations, and policies as they deem essential and appropriate for the conduct of business.

This includes, for example, but not limited to, approving the bank’s operational strategies and plans; approving the internal regulations, along with regulations related to administrative, financial, technical, control and human resources.

The board also has the right to approve the bank’s organizational structure, determine the fiscal year, approve the budget statement and its final accounts, approve the appointment of external auditors and determine their fees, establish branches or offices, and, follow up on the periodic reports submitted on work progress.

The board may delegate some of its competencies to the governor, and the governor may delegate these competencies to SAMA employee/s, in accordance with controls and a schedule of powers approved by the board.