corporate governance statement
corporate governance is the system by which business corporations are directed and controlled. the corporate governance structure specifies the roles of different participants in the corporation, such as the board, managers, shareholders and other stakeholders, and spells out the rules and procedures for making decisions on corporate affairs. by doing this, it also provides the structure through which the entity’s objectives are set, measured and monitored.
bank muscat strongly believes in ethical values to achieve higher standards of corporate governance. we continue to strive for excellence in business operations through transparency, and accountability to all our stakeholders. we conduct affairs with customers, regulators, employees, investors, vendors, government and society at large in an open and transparent fashion. bank muscat has been practicing the principles of good corporate governance consistently since its inception. corporate governance at bank muscat has evolved not only by ensuring compliance with regulatory requirements but also by being responsive to stakeholders’ needs. the bank strives for excellence through the objectives of enhancing satisfaction both to its customers and shareholders.
as, the flagship financial services provider in the Sultanate, bank muscat marked a milestone of 35 years of leadership as the beacon of banking excellence in Sultanate of Oman. the bank started operations with 30 employees at its inception in 1982 to reach 3608 employees as on 31st December 2017 with 94.62% Omanisation. the bank’s human resources strategy is notable in maintaining gender diversity as 48 per cent of employees are women holding various positions, including senior management positions. bank muscat reckons its competent people as key strength and is focused on equipping them to make vital contributions to the Bank's growth and success. the bank plays a prominent role in the development of Omani talent and is committed to investing in improving their skill and expertise. during the past 35 years, the bank has been closely associated with the progressive march of the nation in all realms, participating in the country’s development projects and complementing the government’s endeavours to boost the national economy.
the board of directors of bank muscat SAOG is committed to the highest standards of corporate governance. the bank is committed to raising the bar even further so as to set a leading example of the letter and spirit of the Code of corporate governance laid out by the Capital Market Authority (CMA) and the regulations for corporate governance of banking and financial institutions issued by the central bank of Oman (CBO). This commitment has been reflected with the bank being awarded corporate governance excellence awards in the financial sector by CMA and winning accolades a number of times from Hawkamah, the Institute for corporate governance.
reiterating its leadership role, bank muscat took the lead in launching Islamic banking services through Meethaq Islamic Banking. within four years of operations, Meethaq Islamic Banking has consolidated its leadership position. notably, Meethaq has crossed a milestone of over OMR 1 billion in assets. presently, Meethaq accounts for over 33% market share in terms of assets and is the market leader in Islamic banking in Oman. The new CMA code of corporate governance for public listed companies issued by circular no. 4.2015 in July 2015 (applicable from 2016) and the CBO circular BM 932 on corporate governance of banking and financial institutions are the principal codes and drivers of corporate governance practices in the Sultanate of Oman. bank muscat fully complies with the provisions of the old and new code.
corporate governance has also been defined more narrowly as the relationship of an entity to its shareholders or more broadly as its relationship to society. that is why, in 2008, a department dedicated to corporate social responsibility was established with the vision of adopting a new approach of addressing society’s needs through inspiring new forms of true partnership among all sectors of society to serve the community in the best way. as a forward looking financial institution, bank muscat is at the forefront in contributing to society and thereby setting a fine example for the corporate sector to develop social responsibility as a corporate culture. as the pioneer of CSR activities in the banking sector in Oman, the bank has implemented several initiatives benefiting various segments of society. ‘Imprints’, the Bank’s largest CSR initiative, was launched in 2016 to address the changing economic environment and current social issues. stemming from the royal directive of his Majesty Sultan Qaboos bin Said to accord priority for social responsibility, the initiative is the first-of-its-kind in Oman in terms of its scope and reach, seeking to unite different segments of people.
the bank is thankful to the supportive measures by the central bank of Oman (CBO) and the capital market authority (CMA) to strengthen the financial market in the Sultanate. The Bank’s success and excellence are the results of concerted efforts combined with a strong ambition and the will to attain the leadership position.