An investigation into the training of non-executive directors of banks

Abstract

Following a number of high-profile bank failures in recent years, both locally and abroad, increasing emphasis is being placed worldwide on the accountability and responsibilities of boards of directors. The Registrar of Banks has publicly stated that there needs to be a focus on the training of non-executive directors in particular in order to enable them to fulfil their duties. In addition, although most banks have some form of director training programmes, no minimum standards for non-executive director training have been developed or measurement tools implemented.The purpose of the research was to investigate the training of non-executive directors of banks in South Africa so as to contribute to the contribute to the current debate and understanding of what interventions are necessary to respond to the call by the Registrar of Banks. A combination of qualitative and quantitative research methodologies was used to elicit a cross section of views and an approximation of the truth.The results indicate that while there is widespread acceptance of the need to address the issue of training of non-executive directors of banks, there are divergent views on how this should be done. In particular, further research needs to be conducted in order to develop standardised methodologies and assessment tools.