Roundup: AIIB's success to rest on transparency, strong governance: president

The president of the young Asian Infrastructure Investment Bank (AIIB), Jin Liqun, said on Tuesday AIIB's success will ultimately rest on transparency and strong governance.

"Our success will ultimately rest on our transparency and strong governance, as we intend to run this organization by the highest international standard," Jin said in a keynote speech to the second European Financial Forum, which took place in Dublin on Tuesday.

"Our bank is trying to do things differently, and do different things, finding unique, Asian approaches to development for the 21st Century," he said.

On Tuesday, the Financial Times in partnership with IDA Ireland, the Irish inward investment agency, presented the second European Financial Forum, bringing together hundreds of international and Irish industry leaders, policy makers, regulators and subject matter experts to explore the various forces that are shaping the global financial services industry.

"The bank should be squeaky clean, or should not exist at all," Jin said.

"We will adhere to high standards of governance, transparency, and zero tolerance for corruption," he said.

"This focus has also boosted interest in joining this bank, and there are almost 30 countries, including Ireland, that are expected to join our ranks this year," said Jin.

Jin, the former Chinese vice minister of finance and ex-vice president of Asian Development Bank, was chosen as the first AIIB president in January 2016.

On the management of the bank, the president said the bank is adopting new approaches to governance, contributing to the evolution of best practice for the 21st Century.

"Transparency is an important characteristic and informs how the management of this bank operate and interact, both among themselves and with the board," he said.

Internally, major decisions are not made without thoughtful consideration and in-depth discussion by all of the members of the senior management, he added.

"In the name of transparency, we are currently recruiting an internal auditor, who will have full access to the bank and be a member of the management committee," Jin said.

"Externally, we ensure our board is always informed of the bank's activities. Indeed, the board's access to information does not rest on residency," he said.

Information provision is predicated on the division of responsibility between board and management, with the board focusing on the policies and strategy, and management focusing on the day-to-day operations of the bank, according to Jin.

"We also have an Audit Committee for our board of directors, which will have external members. This concept, to include both internal and external participants on the Audit Committee, is an innovation and a first for any MDB (multilateral development bank)," he added.

As a multilateral financial institution, AIIB commenced operation in January 2016.

"One year into operation, we have made important progress in varying respects, and have approved a lending program of 1.73 billion U.S. dollars," Jin said. Endit