GAMMA-5 assigned to the Development Bank of Kazakhstan
14/01/2010 22:27
GAMMA-5 assigned to the Development Bank of Kazakhstan
14/01/2010 22:27
Tashkent, Uzbekistan (UzDaily.com) -- Standard & Poor’s Governance Services said it has assigned its governance, accountability, management, metrics, and analysis (GAMMA) score of ‘GAMMA-5’ to the JSC Development Bank of Kazakhstan (DBK), one of Kazakhstan’s development institutions which is wholly owned by “Samruk-Kazyna” Sovereign Wealth Fund of Kazakhstan.
"The shareholder, the board of directors and executives of the bank seek to establish governance structures and processes based on best international practice. Thus, two independent directors were appointed and the board’s authority formalised," said Standard & Poor’s governance analyst Elena Pastoukhova. "We also note a number of weaknesses that currently constrain the GAMMA score. The bank has an explicit role in stimulating the development of the national economy outside the extraction sector, however, the exact forms of support to the economy and strategies are not clearly defined and may not be consistent over time. For example, the bank’s role in tackling the fallout from the global recession could sway the bank’s goals and scope of activities, and as a result distract it from core operations. Other weaknesses comprise a considerable volume of related-party transactions, a lengthy decision-making process at parent level and politicised executive compensation decisions.”
The overall GAMMA score assigned to the DBK is the result of four component scores of 1 (low) to 10 (high).
-- Shareholder influence
4+
-- Shareholder rights
5
-- Transparency, audit and enterprise risk management (ERM)
5+
-- Board effectiveness, strategic process and incentives
5
The strengths of corporate governance practices at the DBK, according to Standard & Poor’s Governance Services, include:
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$ 1 | 12697.00 | 0.000% |
1 | 13547.70 | 0.000% |
₽ 1 | 135.05 | 0.000% |