Introduction to Corporate Governance Federal Reserve System Outline

Introduction to Corporate Governance 公司治理简介 Federal Reserve System

Outline of Presentation 讲座纲要 Definition of corporate governance 公司治理的概念 F International factors impacting corporate governance 影响公司治理的国际因素 F “Best practices” for corporate governance 公司治理的最好实践 F BIS corporate governance issues 国际清算银行关于公司治理的问题 F Examiner perspective 监管者的观点 F 2

Definition of Corporate Governance 公司治理的概念 F A system of checks and balances promoting a healthy balance of risk and return 推动风险与回报保持良性平衡的制衡体系 F Facilitates efficient, safe, and sound financial institutions 推进高效、安全、稳健的金融机构运作 3

What is Corporate Governance? 什么是公司治理？ F Set of relationships among 以下各方之间的关系： – – – Management 管理层 board of directors 董事会 shareholders/ other stakeholder 股东/其他利益关联方 Regulators 监管者 other control groups - e. g. audit 其他控制机构—如审计 other players - e. g. market discipline 其他的参与者—如市场规则 4

Impact of Banks’ Structure on Corporate Governance 银行结构对公司治理的影响 F Type of Ownership: 所有者形式 – state-owned banks 国有银行 – privately-owned banks 私有银行 – listed banks 上市银行 5

State-Owned Banks 国有银行 Leading role assumed by management – 管理层发挥领导作用 F shareholders - lesser role 股东作用小 F External auditors could overvalue implicit/explicit State guarantee 外部审计可能高估国家的隐性或直接担保 F Banking supervision - last line of defense 银行监管—最后的防线 F 6

Privately-Owned Banks 私有银行 Management has no autonomy vs. the shareholder(s) 管理层相对股东没有自主权 F Bank supervision more critical - protect the depositors 银行监管更为重要—保护储户 F Market discipline - may or may not be significant 市场规则—重要性不明确 F 7

Listed Banks 上市银行 F Key elements will work effectively 有效的关键要素： – – – Shareholders 股东 Audit Committee 审计委员会 Management 管理层 Market Discipline 市场规则 External Auditors 外部审计 Bank Supervisors 银行监管机构 8

Increased Importance of Corporate Governance 公司治理的重要性加强 F F Governance weaknesses cited as major contributor to banking problems 公司治理缺陷是导致银行出现问题的主要原因 Growing complexity of bank activity 银行经营活动日渐复杂 Consolidation across financial sectors 金融领域合并不断 Enhanced focus by OECD, BIS, SEC 经合组织、国际清算银行、美国证券交易委员会提高 关注 9

Impact by Type of Economy 经济模式的影响 F World Bank identified four separate models: 世界银行确定的四种模式： – – Asia 亚洲 Europe 欧洲 Anglo-Saxon countries 盎格鲁-萨克逊国家 Emerging Economies 新兴国家 10

Characteristics by Type of Economy 经济模式的特点 F F F F Asia: 亚洲 Large and small diversified shareholders 多样化的大、小股东 Close links between corporations, banks and governments 政府、企业、银行关系紧密 Tightly held and family control 控制严格，家族管理 Absence of minority protection 缺乏对小股东的保护 Impact: 影响 Lack of market discipline 缺乏市场约束 Poor governance 治理水平差 F F F F Europe: 欧洲 Strong institutional framework 严格的制度框架 Swift enforcement and creditor protection 执行迅速，保护债权人 Weak capital markets and limited disclosure 资本市场薄弱，信息披露有限 Strong role for banks and institutional investors 银行和机构投资者占强势地位 Impact: 影响 Reasonable control and governance 合理的控制和治理 11

Characteristics by Type of Economy 经济模式的特点 F F F F F Anglo-Saxon countries 盎格鲁-萨克逊国家: Strong equities markets 强劲的股票市场 Generally good information 普遍良好的信息披露 Good contractual enforcement 执行合同良好 Effective boards 有效的董事会 Takeover a real threat 收购才是真正的威胁 Impact 影响: Competitive markets 竞争市场 Good financial arbitrage 良好的金融套利机会 Really good governance 相当良好的治理 F Emerging economies: 新兴国家 F Poor legal environment 法律环境差 Weak enforcement 执行薄弱 F Little transparency 缺乏透明度 F Few financing alternatives 融资渠道很少 F Impact: 影响 F No checks and balances 没有制衡 F Concentration of powers 权利集中 F 12

Approaches to Corporate Governance 公司治理手段 F Different models of corporate governance exist 公司治理存在不同的模式 – Unitary vs. two-tier boards 单一与双重董事会 – Diverse shareholder base vs. controlling shareholders 分散的股东基础与股东控制 F Our focus is on U. S. model 我们主要研究美国模式 13

Critical Elements In Corporate Governance 公司治理的关键要素 Board of Directors 董事会 F Senior Management 高级管理层 F Control Functions 控制职能 F – Internal Audit 内部审计 – General Counsel 总法律顾问 – Risk Manager 风险管理经理 14

Corporate Governance: U. S. Model 公司治理：美国模式 Historical separation of corporate ownership and control 历史上，公司所有权和管理权分离 F Diffuse nature of shareholder base -- makes rapid decision making difficult 股东基础分散的特点导致快速决策困难 F Board established to represent interests of shareholders (owners) 建立董事会代表股东（所有者）的利益 F Management selected to direct corporation on a day-to-day basis 选举管理层指导企业的日常经营活动 F 15

Board Responsibilities 董事会的职责 Decisions based on corporation’s interests 企业的利益是决策的基础 F Obtain relevant information for decision making 获得制定决策的相关信息 F Select competent executive officers and evaluate and compensate accordingly 选择有才干的行政人员并给予相应的评定和报酬 F Review and approve management-developed strategy 审批管理层制定的战略 F 16

Board Responsibilities, cont. 董事会的职责（续） Monitor bank financial performance 监督银行财务状况 F Monitor control environment 监督控制环境 F Ensure compliance with legal and regulatory requirements 确保合法合规 F Establish guidelines to govern board organization and procedures 制定董事会组织和议事程序规则 F 17

Board Committee Structure 董事会结构 F F F F Audit/Examining Committee 审计/核查委员会 Nominating Committee 提名委员会 Compensation Committee 薪酬委员会 Loan Committee 贷款委员会 Risk Committee 风险委员会 Governance Committee 治理委员会 Executive Committee 执行委员会 18

Sound Practices for Effective Boards 有效董事会的良好实践 F Competent, engaged directors 有才能、尽职的董事 – Careful director selection 慎重挑选董事 – Expertise linked to strategic focus 与战略重点相关的专业知识 – Predominance of independent, outside directors 外部独立董事的优势 – Initial and continuous director training 初始阶段和持续的董事培训 – Guidelines for other board service 董事会其他服务的规则 – Portion of compensation in equity 股权在报酬中的比例 19

Sound Practices for Effective Boards, cont. 有效董事会的良好实践（续） Manageable Board size 便于管理的董事会规模 F Involvement in key strategic decisions 参与重要战略决策 F Meaningful board information packages 有意义的董事会信息库 F – Relevant, comprehensive, timely 相关、全面、及时 – Director involvement in information flow decisions 董事参与信息流动决策 – Validated by independent sources 由独立渠道确认有效 20

Sound Practices for Effective Boards, cont. 有效董事会的良好实践（续） Complete and accurate recordkeeping of board actions 完整和准确的董事会活动记录 F Public corporate governance principles 公开公司治理的原则 F Active self-assessment process 积极的自我评估程序 F – Board-level 董事会层面 – Individual director-level 单个董事层面 F Focused committees 重要委员会 – Charters/Expertise 章程/专业知识 21

BIS - Sound Corporate Governance Practices 国际清算银行—良好的公司治理实践 Appropriate strategic objectives and corporate values - communicated throughout the organization 合适的战略目标和企业价值—机构内部全面传达 F Clear lines of responsibility and accountability 职责和义务的清晰界定 F Qualified Board members 合格的董事会成员 F Appropriate oversight by senior management 高管人员的适度监控 F 22

BIS - Sound Corporate Governance Practices, cont. 国际清算银行—良好的公司治理实践（续） Effective utilization of internal and external audit 有效利用内外部审计 F Compensation approaches consistent with the bank’s ethical values, objectives, strategy and control environment 薪酬与银行的道德价值、目标、战略和控制环境相 一致 F Conducting governance in a transparent manner 在透明的氛围下实施公司治理 F 23

Issues Relating to Transparency 与透明度相关的问题 F Regulatory discipline 监管规则 – The Basle Committee has produced “The 25 Core Principles of Effective Supervision” 巴塞尔委员会制定的“有效银行监管的25条核心原则” – The International Monetary Fund, Art. IV 国际货币基金组织，第四款 F Market discipline (complements banking supervision and reduces excessive risk) 市场规则（补充银行监管及减少额外风险） – Direct 直接 – Indirect 间接 24

Details on Market Discipline 市场规则细则 Emphasizes sound corporate policies and practices 强调良好的治理政策和实践 F Requires adequate transparency and incentives to evaluate risk 要求充足的透明度和积极的风险评估 F – Accurate description of the loan portfolios 对贷款组合的描述准确 – Adequate loan loss provisions 适当的贷款损失拨备 – Adequate review of credit risk 适度的信用风险评估 F Permits analysts to perceive risk in the activities of a financial institution 准许分析师对金融机构的活动进行风险预测 25

Market Discipline 市场规则 F Direct: 直接 – Institution - riskier profile - increase cost of deposits 机构—风险增加的预测—提高存款成本 – Anticipation of higher costs - incentive to reduce risk 成本增加的预期—降低风险的动机 F Indirect: 间接 – Secondary market prices indicate level of risk and probability of illiquidity or bankruptcy 二级市场的价格揭示风险水平、流动性问题或破产的可能性 – Higher risks - force increase in interest rates; lack of investors force higher financing costs 风险增加—迫使利率升高；缺少投资者—迫使融资成本提高 – supervisors could limit a bank’s activities 监管者能够限制银行的活动 26

Market Discipline 市场规则 Reinforce work of supervisors 加强监管者的 作 F Reward banks effectively managing risks 奖励有效管理风险的银行 F Punishes banks that don’t - e. g. increased 惩罚不有效管理风险的银行—如风险增加 F Insurance premiums 保费 F Permits long term stability for financial systems and banks 确保金融体系和银行的长期稳定 F 27

Other Governance Factors 公司治理的其他因素 Corporate governance and lending 公司治理和贷款 F Related party lending restrictions 关联贷款的限制 F Governance of offshore locations 离岸机构的公司治理 F Appropriate structures for internal controls and risk management 内控和风险管理的合理结构 F Liquidity management and foreign exchange risk 流动性管理和外汇风险 F 28

Corporate Governance and Lending Activities 公司治理和贷款活动 F Board of Directors: 董事会 – Sets strategies and policies; 制定战略方针 – Direct involvement in large exposures 直接参与大额业务 F Management: 管理层 – Compliance with and implementation of agreed strategy and policies 遵守并执行既定的战略方针 F Audit Committee: 审计委员会 – Monitors internal control environment for entire Board 为董事会监控内控环境 – Compliance with applicable laws and regulations 合法合规 29

Corporate Governance and Lending Activities 公司治理和贷款活动 F Auditors: 审计人员 – External - financial statement audits; 外部—财务报表审计 – Internal and external - loan portfolio reviews 内部和外部—贷款组合评估 F Supervisors: 监管人员 – Design of regulatory framework 制订监管框架 – Dissemination of best practices 公布良好治理实践 – Review of all the above 对上述所有内容进行检查 30

Limits on Loans to Related Parties 对关联贷款的限制 F Prior supervisory approval required for: 监管者预先核准要求： – Loans exceeding 25% of capital 贷款超过资本的25% to any one debtor in the private sector 对单一私有企业债务 人 u to any group of related debtors 对与债务人有关联的集团 u – Concentrations - not to exceed 10% in the aggregate 集中度—不超过总额的10% 31

Risks in Related Party Lending 关联贷款的风险 F Role of supervisors: 监管者的作用 – Monitor related party lending - ensure adequate basis for extensions of credit 监控关联贷款—保证信用扩张的基础适度 – Verify bank - appropriate monitoring system 检查银行—适当的监控系统 – Verify control system is effective 确保控制系统有效 32

Supervision of Offshore Operations 离岸业务的监管 F Supervisors should: 监管者应该 – Impede offshore structures if supervision is inadequate 如果监管能力不足，阻止离岸机构的设置 – Control groups with parallel banks where there is no consolidated supervision or transparency 控制没有统一监管和透明度的银行 – Review the market strategy 评估市场战略 – Review all loans over the lending limit 评估所有超过贷款额度的贷款 – Ensure consolidated corporate governance 确保统一的公司治理 33

Key Examination Objectives 检查的主要目标 Assess organizational structure 评估组织结构 F Perform corporate governance reviews of larger organizations 对大银行实行公司治理评估 F Review Board of Directors Oversight and committee structure including lines of responsibility 检查董事会的监管和委员会的结构，包括职责安排 F Review segregation of duties specifically 特别要检查职责划分 F Front/back office and approval of limit excessions 前台/后台和超额度授权的批准 F 34

Key Examination Objectives 检查的主要目标 Review adequacy of risk management systems monitoring, limits, MIS 评估风险管理系统—监督、额度、管理信息系统 F Ensure appropriateness of audit, credit review and compliance - independence, competence, effectiveness 确保独立、有效的审计、信用评估及合规性 F Review new product approval process 评估新产品的批准程序 F Determine accuracy of financial accounting and reporting 确定财务会计及其报告的准确性 F Encourage self-assessment process 推动自我评估程序 F 35

Other Observations 其他监测 F Personnel 人事 – Background Checks 背景检查 – Character/Integrity 性格/品行 F F “Follow the Money” “跟钱走” Two Questions 两个问题 – Is This Reasonable? 合理吗？ – Does it Make Sense? 有意义吗？ F Make “Hard Business Decisions” 制定“严格的业务决策” 36