scholarly journals Corporate Governance of Banks and Financial Institutions: Economic Theory, Supervisory Practice, Evidence and Policy

2021 ◽  
Vol 22 (1) ◽  
pp. 13-37
Author(s):  
Klaus J. Hopt

AbstractBanks are special, and so is the corporate governance of banks and other financial institutions. Empirical evidence, mostly gathered after the financial crisis, confirms this. Banks practicing good corporate governance in the traditional, shareholder-oriented style fared less well than banks having less shareholder-prone boards and less shareholder influence. The special governance of banks and other financial institutions is firmly embedded in bank supervisory law and regulation. Most recently there has been intense discussion on the purpose of (non-bank) corporations. For banks stakeholder governance and, more particularly, creditor or debtholder governance is more important than shareholder governance. The implications of this for research and reform are still uncertain. A key problem is the composition and qualification of the board. The legislative task is to enhance independent as well as qualified control. The proposal of giving creditors and even supervisors a special seat in the board is not convincing. Other important special issues of bank governance are for example the duties and liabilities of bank directors in particular as far as risk and compliance are concerned, but also the remuneration paid to bank directors and senior managers or key function holders. Claw-back provisions, either imposed by law or introduced by banks themselves, exist already in certain countries and are beneficial. Much depends on enforcement, an understudied topic.

2020 ◽  
Vol 6 (11) ◽  
pp. 2361
Author(s):  
Fathin Su'aidi ◽  
Irham Zaki

Sharia Board is an commite in sharia financial institution and assigned overseeing the implementation of the decisions of the National Sharia Board (DSN) in Islamic financial institutions. Sharia Board functions to supervise sharia compliance in sharia financial institutions including the Baitul Maal Waat Tamwil (BMT). BMT is a sharia micro finance institution that combines the concept of maal and tamwil . This study aims to determine the problems faced by the Sharia Board in conducting supervision in BMT. The point that is necessary reviewed in this supervisory practice are based on Decree MUI DSN No. 3 of 2000 concerning instructions for implementing the determination of members of the sharia board in sharia financial institutions. This study use qualitative methods with descriptive case study strategy. From the results of the research occur several problems were encountered by the Sharia Board including: lack of the professionalism of Sharia Board, lack of commitment, lack of independence, and challange to mobilize all elemnts os sharia financial institution to comply with sharia law.The sloution of the problematic is by upgrade an increase faith and taqwa ang commitment to enforce sharia especially as the Sharia Board. always implementing the principles of Good Corporate Governance, and the governmemt making strong and clear rules of sharia supervisions.Keywords: Problematic , Sharia Board , Baitul Maal Wat Tamwil


1998 ◽  
Vol 2 (2) ◽  
pp. 18-22
Author(s):  
N. Vittal

Corporate Governance provides the fundamental value framework for the culture of an organisation which ensures efficient functioning of enterprises on sound ethical values and principles. Corporate governance has become a necessity, especially since 1991, when India made a U-turn in its economic policy and the revised policy of the government was aimed at attracting funds from foreign financial institutions. The primary resonsibiity of good corporate governance is that of the Board of Directors. For better corporate governance the boards should perform the role of monitoring the functioning of an organisation, without at the same time reducing the effectiveness of the management by interfering with their day-to-day matters. One of the impediments in the way of good corporate governance is corruption. The three factors within any system which generate corruption are: scarcity, lack of transparency and delay. If these three problems are tackled effectively, corruption can be checked to a great extent. As far as public sector undertakings are concerned, the “Code of Conduct and Ethics” should facilitate the redesigning of the PSEs.


2017 ◽  
Vol 9 (2(J)) ◽  
pp. 88-95
Author(s):  
Banele Dlamini ◽  
Julius Tapera ◽  
Shynet Chivasa

This study, using the Ordinary Least Squares (OLS) Regression Model, investigated the extent to which good corporate governance practices can minimise or alleviate corporate failure in the Zimbabwean Financial Services Sector. The results of the study reflected that sound corporate governance has a positive effect on corporate success and can alleviate corporate failure. It is thus recommended that financial institutions continuously adhere to sound corporate governance practices to guarantee corporate success and alleviate the collapse of financial institutions as has been witnessed in the past. The findings of the study will assist policy makers, regulators and players in the financial services sector to adhere to sound corporate governance practices, given its impact on corporate success. Further research could be carried out with regards the implementation of sound corporate governance in parastatals, quasi-government institutions and private sector companies in other sectors other that the financial services sector and how it can be monitored or enforced.


2020 ◽  
Vol 17 (3) ◽  
pp. 4-6
Author(s):  
Áron Perényi ◽  
Simone Terzani

The new issue of Corporate Ownership and Control journal is composed by 15 articles focussing on a variety of topics in the field. Five papers present empirical evidence from banks and financial institutions, three focus on firm finances, four on governance and responsibility and a further three on the role of technology in terms of contextualising various business management activities.


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