Equity bank’s board members are not allowed to trade with the bank. This is according to Mary Wamae, the Equity Bank Group secretary.
Speaking during the release of the bank’s quarter one results, Mrs. Wamae further noted that no individual at the bank could single-handedly lend out money.
In the same investor briefing where Equity bank reported a 20 per cent growth in profits from Sh. 4.3 billion to Sh. 5 billion, Equity Bank CEO Dr. James Mwangi added that the institutional structure of Equity Group is anchored largely on oversight by the Board across subsidiaries.
“Equity Group Holdings’ has a strong governance and leadership structure that is very unique from other banks,” Dr. Mwangi said. “No single individual has lending authority within the Bank. All decisions are made by credit committees.” He further noted that any loans exceeding Sh. 200 million needed an approval from the board.
Additionally, according to Mrs. Wamae, Equity resolved to form a non-operating Company Equity Group Holdings as per the regulatory rules.
