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Budhijono, Fongnawati. "PEMBANDINGAN KINERJA TATA KELOLA BANK-BANK YANG BEROPERASI DI INDONESIA." Jurnal Bina Akuntansi 4, no. 2 (July 31, 2017): 166–74. http://dx.doi.org/10.52859/jba.v4i2.32.
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Indonesian banking authorities consider corporate governance as one of the issues that can ensure the stability of the management of banks operating in Indonesia. Good corporate governance in banking is the governance of banks that apply the principles of transparency, accountability, responsibility, independence, and fairness. Good corporate governance in the banking sector is important because it can boost bank’s and shareholder’s profits in the long run. The focus of this study is to evaluate whether there are differences in the performance of bank governance in relation to the classification of BOOK (BUKU) established by the authorities. The study was conducted using secondary data obtained from Infobank Research Bureau (2017). In total there are 103 banks incorporated in various classifications of various BOOKS (BUKU) and also foreign banks. As the research variable is GCG Composite Value. This study is conducted by considering the bank grouping according to Bank Indonesia (BI) regulations on business activities of commercial banks (BUKU) and also banks belonging to the classification of foreign banks. The test were performed using ANOVA and multiple comparison with post hoc test. The result of the analysis stated that there is no difference of GCG composite value for banks belonging to different books (BUKU), including foreign banks.
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Utama, Cynthia A., and Haidir Musa. "The Causality between Corporate Governance Practice and Bank Performance: Empirical Evidence from Indonesia." Gadjah Mada International Journal of Business 13, no. 3 (September 12, 2011): 227. http://dx.doi.org/10.22146/gamaijb.5481.
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The aim of this study is to examine the existence of causality between corporate governance practice and performance of commercial banks in Indonesia. We also investigate the influence of age, capital adequacy, and type of commercial banks on bank performance and examine the influence of the bank size, foreign ownership, and listing status on corporate governance practice. The result shows that corporate governance practice, bank size and capital adequacy ratio have positive influences on bank performance in Indonesia. However, bank performance does not influence corporate governance practice. This study also finds that regional banks have better performance than private banks. The results of the study support the Central Bank’s efforts to enhance CG practices in the banking sector, to strenghten banks’ capital base and its policy to encourage banks to merge to become larger.
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Febrianto, Hendra Galuh, and Amalia Indah Fitriana. "MENILAI TINGKAT KESEHATAN BANK DENGAN ANALISIS METODE RISK PROFILE, GOOD CORPORATE GOVERNANCE, EARNINGS, CAPITAL PADA BANK SYARIAH DI INDONESIA." Islamic Banking : Jurnal Pemikiran dan Pengembangan Perbankan Syariah 6, no. 1 (August 27, 2020): 139–60. http://dx.doi.org/10.36908/isbank.v6i1.135.
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ABSTRACT
In the banking world of soundness, banks are very important for the formation of trust. Trust and loyalty to banks is a very helpful factor and makes it easier for bank management to develop good business strategies. Bank Soundness Levels are results issued by banks which are carried out on bank risk and performance (Bank Indonesia Regulation Number: 13/1 / PBI / 2011). If more than conventional banking with Islamic banking, conventional banking finance is better than Islamic banking. This is blessed with poor sharia banking (corporate governance) management. In order to be able to carry out its functions properly, banks must have sufficient capital, ensure the quality of their assets properly, be well managed and managed based on the principle of prudence, generate sufficient profits to maintain an increase, and support liquidity so that it can be adjusted to their needs. Therefore banks are required to be able to achieve and maintain a good and optimal level of performance, because the level of bank performance can increase the level of trust and loyalty needed by the wider community to use the products, services and financial activities of the bank.
The purpose of this study is for advanced financial research with analysis of Risk Profiles (Risk Profiles), Good Corporate Governance (GCG), Profitability (Income), and Capital (Capital) which is hereinafter abbreviated as RGEC with the final aim of research for the needs of Sharia banking management in accordance with the latest Bank Indonesia and OJK regulations.
This type of research uses descriptive research proposed in the RGEC analysis (Risk Profile, Good Corporate Governance, Income, and Capital) at Islamic Banks in Indonesia. from 2013 to 2017.
Keywords: Risk Profile, Good Corporate Governance, Income, Capital, Bank Soundness
ABSTRAK
Dalam dunia perbankan tingkat kesehatan bank sangat penting bagi pembentukan kepercayaan. Kepercayaan dan loyalitas nasabah terhadap bank merupakan faktor yang sangat membantu dan mempermudah pihak manajemen bank untuk menyusun strategi bisnis yang baik. Tingkat Kesehatan Bank adalah hasil penilaian kondisi bank yang dilakukan terhadap risiko dan kinerja bank (Peraturan Bank Indonesia Nomor: 13/1/PBI/2011). Jika dibanding antara perbankan konvensional dengan perbankan syariah, kinerja keuangan perbankan konvensional lebih baik daripada perbankan syariah. Hal ini dikarena tatakelola (good corporate governance) perbankan syariah yang masih buruk. Agar dapat menjalankan fungsinya dengan baik, bank harus mempunyai modal yang cukup, menjaga kualitas asetnya dengan baik, dikelola dengan baik dan dioperasikan berdasarkan prinsip kehati-hatian, menghasilkan keuntungan yang cukup untuk mempertahankan kelangsungan usahanya, serta memelihara likuiditasnya sehingga dapat memenuhi kewajibannya. Oleh karena itu bank dituntut untuk bisa mencapai dan mempertahankan tingkat kinerja yang baik dan optimal, karena tingkat kinerja bank yang baik dapat meningkatkan kepercayaan dan loyalitas nasabah maupun masyarakat luas untuk menggunakan produk, jasa dan aktivitas keuangan dari bank tersebut.
Tujuan penelitian ini adalah untuk menilai tingkat kesehatan keuangan dengan analisis Profil Risiko (Risk Profile), Good Corporate Governance (GCG), Rentabilitas (Earnings), dan Permodalan (Capital) yang selanjutnya disingkat RGEC dengan tujuan akhir merekomendasikan kebijakan untuk memperbaiki manajemen perbankan Syariah yang sesuai peraturan Bank Indonesia dan OJK yang terbaru.
Jenis penelitian ini menggunakan penelitian deskriptif yang berfokus pada analisis RGEC (Risk Profile, Good Corporate Governance, Earnings, and Capital) pada Bank Syariah di Indonesia. dari tahun 2013 sampai 2017.
Kata kunci: Risk Profile, Good Corporate Governance, Earnings, Capital, Tingkat Kesehatan Bank
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Hossain, Amzad, Farid A. Sobhani, Normah Omar, Norazida Mohamad, and Jamaliah Said. "Corporate Governance, Risk Management and Ethical Investment: Evidence From Banking Industries." International Journal of Financial Research 10, no. 5 (June 10, 2019): 126. http://dx.doi.org/10.5430/ijfr.v10n5p126.
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Considering the importance of good corporate governance in the banking industry, the study has been designed to investigate the managerial perceptions on interrelationship among good corporate governance, risk management, and ethical investment of the commercial banks of Bangladesh. Bangladesh has been selected as a field of study for three reasons. Firstly, banking is the leading sector in Bangladesh. Secondly, banking sector has been highly criticized in the recent times due to Bangladesh Bank scandal. Thirdly, banking is gradually being challenging services in Bangladesh. As a financial intermediary, bank has to ensure good corporate governance for smooth operations and reducing agency problem. As a trustee, bank deals with the money of others through various schemes of investment. Ethical investment known as social responsible investment is an indicator of good corporate governance. A structured questionnaire has been used to gather perceptions of managers of the sample banks. The results suggest that the most important factors for effective CG were the board of directors, auditors and managers of the various departments. The study also finds that risk taking behavior of the bank is influenced by the direction of board of directors. In this study corporate governance variables have been categorized with some sub-indices. Board’s structure with independent directors and well communication with supervisors ensure the efficient risk management practices in the banks where internal audit system and transparent disclosures of the board ensure the ethical investment practices.
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Busta, Ilduara. "Corporate governance in banking: A survey of the literature." Corporate Ownership and Control 7, no. 3 (2010): 368–86. http://dx.doi.org/10.22495/cocv7i3c3p4.
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The aim of this paper is to explain the particular characteristics of the corporate governance of banks and its role for good bank performance. In order to do that, it reviews the existing literature on this issue trying to answer three main questions: (i) Why are banks different? Existing research points at diverse features, such as, regulation, supervision, capital structure, risk, fiduciary relationships, ownership, and deposit insurance, that would make banks special and thereby influence their corporate governance. (ii) What is different about bank governance? According to past studies, banks’ boards of directors are larger, more independent, have a superior number of committees and meet more often, but seem to play a weaker disciplinary role. Executive compensation would be higher in banking, but pay-performance sensitivity appears lower. (iii) What works for banks? Larger boards, more concentrated ownership structures and certain levels of managerial shareholdings are the principal factors suggested by the empirical evidence to date that seem to lead banks to higher performance.
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Onofrei, Mihaela, Bogdan-Narcis Firtescu, and Paula-Andreea Terinte. "Corporate Governance Influence on Banking Performance. An Analysis on Romania and Bulgaria." Scientific Annals of Economics and Business 65, no. 3 (September 1, 2018): 317–32. http://dx.doi.org/10.2478/saeb-2018-0020.
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Abstract The aim of the paper is to find if the corporative governance characteristics have an impact on bank performance. We conducted an OLS regression on panel data (fixed, random effects and first-difference). We used data from Romanian and Bulgarian commercial banks as reported by Bureau van Dijk database and categorical variables manually collected by analyzing the annual reports of the banks from our sample. These latest dummy variables reflect the corporative governance component for our model. The data used in our paper is from 2003 to 2015 period. Our results showed that there are some statistically significant effects of our categorical variables on bank profitability in both countries, so, the good practice of corporate should be applied for obtaining higher bank’s performance.
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Ayadi, Mohamed A., Nesrine Ayadi, and Samir Trabelsi. "Corporate governance, European bank performance and the financial crisis." Managerial Auditing Journal 34, no. 3 (March 4, 2019): 338–71. http://dx.doi.org/10.1108/maj-11-2017-1704.
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PurposeThis paper aims to analyze the effects of internal and external governance mechanisms on the performance and risk taking of banks from the Euro zone before and after the 2008 financial crisis.Design/methodology/approachTo avoid macroeconomic problems and shocks and because of data availability, the authors select some countries of the Euro zone, namely, France, Belgium, Germany and Finland, during the 2004-2009 period. These countries share similar macroeconomic environments (unemployment, inflation and economic growth rates). All the data relating to the banks are manually drawn from the supervising reports submitted to banks and are available on the banks’ websites and/or on that of the AMF website. The banks included in our sample are drawn from the list of European central banks onwww.ecb.intFindingsThe empirical results show that banks undertake tradeoffs between different governance mechanisms to alleviate the intensity of the agency conflicts between the shareholders and managers. The findings also confirm that internal mechanisms and capital regulations are complementary and significantly impact bank performance.Research limitations/implicationsThis analysis can be extended through studying the interaction between bondholders’ governance and shareholders’ governance and their impact on the 2008 financial crisis.Practical implicationsThe changes in banking governance help banks find a useful and necessary way to avoid ill-considered risks that can cause a systemic risk. Therefore, some conditions should be met so that banking governance can contribute to the economic development.Social implicationsCulture and mentality of good banking governance must grow as much as possible through awareness-raising, training, promotion, recognition of performance, enhancing procedure transparency and stability of good banking governance and regulations, strengthening the national capacity to fight against corruption, and preventive mechanisms.Originality/valueThis paper complements previous studies, mainly those of Andres and Vallelado (2008) who examine the impact of the components of the board on banking performance and of Laeven and Levine (2009) who estimate the combined effect of regulatory and ownership structure on the risk-taking of each bank.
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Brychko, Maryna. "Governance of stakeholder’s financial relationships: evidence from Ukrainian banking." Corporate Ownership and Control 11, no. 1 (2013): 706–14. http://dx.doi.org/10.22495/cocv11i1c7art7.
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This paper makes two related contributions to corporate finance theory and stakeholder theory. First, the author intend to examine relationship between sustainability of stakeholders’ financial relations and efficiency of corporate governance, taking into account lagging of decision-making corporate governance in banks to it financial performance. Second, the author seeks to prioritize stakeholders’ financial relations of the emerging stakeholder model of corporate governance at banks by analyzing two relevant dimensions of this model: contribution valued resources to the bank and power that the stakeholders have within the bank. The findings confirm that efficiency of bank management in the system of stakeholder’s financial relationships in absolute efficiency of corporate governance achieved solely through sustainable financial relations of “principal-agent” (where principals are individuals and agent is apparatus of corporate governance). The results show that the role of individuals as sub-agents, enterprises as principals and sub-agents, shareholders as principals formed negative effect.
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Wafi, Inngamul. "Peranan Good Corporate Governance dalam Perbankan Syariah." Syariati : Jurnal Studi Al-Qur'an dan Hukum 6, no. 02 (December 17, 2020): 183–94. http://dx.doi.org/10.32699/syariati.v6i02.1347.
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In recent years Islamic financial institution industry is developing so rapidly, as weel as Islamic banking in Indonesia which is developing significantly. The development of Islamic banking must be accompanied by good governance sothat sharia is not only tag line for the Islamic financial institutions. SOP of Islamic banking must be carried out correctly based on sharia principles. Therefore, Bank Indonesia issued Bank Indonesia Regulation No. 11/33 / PBI 2009 concerning the implementation of Good Corporate Governance (GCG) for Sharia Commercial Banks and Sharia Business Units. The five principles are: Transparency, Accountability, Responsibility, Professional and Fairness or equity. Good Corporate Governance (GCG) is a banking management system designed to improve compliance with laws and regulations of applicable moral ethics. According to Chapra the application of Good Corporate Governance is a requirement for Islamic banks to develop well and healthily. The implementation of Good Corporate Governance (GCG) in Islamic banking is expected to create a healthy, conducive, transparent and efficient business.
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Ullah, Saif. "Role of Corporate Governance in Bank’s Efficiency in Pakistan." Studies in Business and Economics 15, no. 1 (April 1, 2020): 243–58. http://dx.doi.org/10.2478/sbe-2020-0018.
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AbstractThe purpose of this research paper is to explore the role of corporate governance of banks (independence of the board, board size, CEO duality, audit committee independence, managerial ownership) to boosting up the bank’s efficiency. The study uses bank size, macro-economic conditions, banking structure and economic freedom as control variables. The sample size of the study is 21 Pakistani banks for the period of 2007-2016 and fixed effect panel regression estimation technique is used for data analysis. The results suggest that corporate governance has a statistically significant negative impact on management efficiency, positive effect on profit efficiency and cost efficiency of the banks. Moreover, the findings show that operating efficiency turned out to have a statistically insignificant relationship with corporate governance. Reforms of corporate governance should be adopted efficiently and effectively to boost the banking sector efficiency.
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U-Din, Salah. "The Corporate Governance Models for Banks: A Comparative Study." Studies in Business and Economics 16, no. 1 (April 1, 2021): 210–20. http://dx.doi.org/10.2478/sbe-2021-0017.
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Abstract An effective corporate governance system is vital in modern-day economics and firms. It can help to specify the distribution of roles, responsibilities, and resources among various stakeholders of an organization or society. The enhanced role of the banks in various economic systems demands a higher level of corporate bank governance for a stable and sustainable financial system. In this paper; four major corporate governance models of banks are compared and the financial outcomes of each model are analyzed to assess their alignment with expectations of an effective corporate governance system. The Continental corporate governance model found to be closer to the expectations of an effective corporate governance system compared to the Anglo- Saxon, Chinese, and Islamic banking. Banks under the Continental model charge lower margin to its customers, use bank resources more efficiently and create relative balance in the distribution of resources among all stakeholders compared to the other three models. Banks under the Anglo- Saxon model are charging higher margin to its customer, Chinese banks are under-utilizing the banks’ resources, and Islamic banks are more favoring their shareholders and are riskier among banks of all selected models. Higher involvement of the more stakeholders in the decision-making process of the banks is key to effective corporate governance and sustainable banking system. Reforms in all corporate governance models are recommended while keeping in mind the prior research on corporate governance especially the Sir Adrian Cadbury report.
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Kusuma, Hadri, and Hanifah Dina Zain. "Corporate governance and discretionary accruals: Evidence from Indonesian Islamic banks." Corporate Ownership and Control 14, no. 3 (2017): 259–65. http://dx.doi.org/10.22495/cocv14i3c1art11.
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The objective of this study is to investigate the effect of the corporate governance on the discretionary accruals. The study of the corporate governance structure in the banking sectors is an important component within the enhancement of banks’ efficiency and performance. While prior studies employed corporate governance dimensions as variable proxies, this study uses a single proxy: corporate governance efficiency. The measurement of the corporate governance efficiency employed the Data Envelopment Analysis with the help of the EMS software. Using purposive sampling, the data were extracted from the financial statements and annual reports of the Islamic banks. The regression using panel data was employed to analyze the relationship between the efficiency and bank’ discretionary accruals. The main findings show that the corporate governance efficiency significantly correlated to the Islamic bank’ discretionary accruals, implying that good corporate governance can minimize earning management and therefore improve earning quality. The efficiency level of the corporate governance also improved significantly during the research period. Additional results indicated that the control variables of risk and gender board of director were not significant, but the percentage gender board and board size significantly influenced the discretionary accruals. The results of this study draw some implications that help academicians, banks and investors of the banking sector.
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Shandy Utama, Andrew. "Good Corporate Governance Principles in Indonesian Syariah Banking." International Journal of Law and Public Policy 2, no. 1 (March 23, 2020): 8–13. http://dx.doi.org/10.36079/lamintang.ijlapp-0201.86.
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Islamic banks are banks that carry out their business activities based on the principles of Islamic law in banking activities based on fatwas issued by the National Sharia Council of the Majelis Ulama Indonesia. This research aims to explain the principles of Good Corporate Governance in Islamic banking in Indonesia. The method used in this research is normative legal research. The results of the research explained that to maintain the trust of Indonesian people who are predominantly Muslim, Islamic banking must apply the principle of Good Corporate Governance in its management. The application of the principle of Good Corporate Governance in Islamic banking is strictly regulated in Article 34 Paragraph (1) of Law Number 21 of 2008, which emphasizes that Islamic banks must implement good governance that includes the principles of transparency, accountability, responsibility, professionalism and fairness in carrying out its business activities. Form of application of the principles of Good Corporate Governance in Islamic banking is supervision conducted by the National Sharia Council of the Majelis Ulama Indonesia in general and the Sharia Supervisory Board specifically in each Islamic bank. Based on data from the Financial Services Authority in 2017, currently there are 13 Islamic banks in Indonesia, 13 Islamic business unit of conventional banks, and 102 Islamic rural banks. This is evidence of the existence and development of Islamic banking that is significant in the national banking system.
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Mozghovyi, Yaroslav, Kateryna Kondrunina, Iuliia Ratnykov, and Daria D. Skidan. "Corporate governance regulation in banks in the context of crisis: The role of the national bank of Ukraine." Corporate Ownership and Control 9, no. 1 (2011): 221–32. http://dx.doi.org/10.22495/cocv9i1c1art6.
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This paper gives an overview of corporate governance and banking regulation in Ukrainian banks. Particular attention is paid to the regulatory changes by the National Bank of Ukraine which was made in response to the financial crisis. The paper focuses mainly on the regulation influencing the payment schemes and the size of the regulatory capital as the elements of corporate governance system. The research suggests that some documents issued by the National Bank of Ukraine have a contradictory affect on banks’ sustainability and might provoke the conflict of interests within the structure of corporate governance.
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Mulyani, Rita. "GOOD CORPORATE GOVERNANCE DAN MANAJEMEN RESIKO DI BANK SYARIAH." Jurnal Ekonomi Syariah, Akuntansi dan Perbankan (JESKaPe) 3, no. 2 (November 8, 2019): 57–79. http://dx.doi.org/10.52490/jeskape.v3i2.432.
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By applying the principles of good corporate governance and risk management, Islamic banks have won the trust of the public by significantly increasing the number of Islamic bank customers, although not as much as conventional bank customers. To build public trust in Islamic banks, in addition to GCG, there is also a need for good management and risk management of Islamic banks. It is hoped that Islamic banks will be able to play an active role in banking activities in Indonesia as an indicator of whether or not the economic conditions in Indonesia. The role of corporate governance has been far applied in the teachings of Islam. The principles of Good Corporate Governance which consist of transparency, accountability, responsibility, professional and fairness are contained in sharia values which intensely consist of: (1) shiddiq (honesty), (2) trust (fulfillment of trust), (3) fathanah (intelligence), (4) tabligh (transparency, openness). The important thing that needs to be done by Islamic banks is to build an effective risk management culture, so that banks have competitiveness and survive in economic conditions that are full of uncertainty or even crisis. The types of risks faced by Islamic banks include the following: 1) Financing Risk, 2) Liquidity Risk, 3) Interest Rate Risk, and 4) Operational Risk.
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Narwal, Karam Pal, and Shweta Pathneja. "Effect of bank-specific and governance-specific variables on the productivity and profitability of banks." International Journal of Productivity and Performance Management 65, no. 8 (November 14, 2016): 1057–74. http://dx.doi.org/10.1108/ijppm-09-2015-0130.
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Purpose The purpose of this paper is to analyze the effect of bank-related variables and corporate governance-related variables on the productivity and profitability of public and private sector banks in India. Design/methodology/approach The Malmquist productivity index is applied to determine the productivity of different banks. Further, return on average assets is used as profitability of banks. The regression analysis is further used to assess the effect of different bank-related and governance-related variables on performance of banks. Findings Nearly all the bank-specific variables explain the productivity and profitability of banks but a weak relationship is observed between individual governance variables and performance variables. Two governance variables, i.e. board meetings and remuneration explicate the profitability of the public sector banks and only duality explains the profitability of the private sector banks. No significance is found between productivity and governance variables. Originality/value The study addresses the embryonic issue of corporate governance in the banking sector. The uniqueness of the paper lies in that no study has evaluated the effect of these variables on productivity and profitability of banks simultaneously.
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Yoseph Y. F., Deograsias. "Analisis Manajemen Risiko Pada Perusahaan Perbankan Yang Go Public." BIP's : JURNAL BISNIS PERSPEKTIF 10, no. 2 (November 12, 2019): 161–74. http://dx.doi.org/10.37477/bip.v10i2.40.
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The expanding banking growth is followed by the increasing number of risks that must be faced by banks. Along with the external conditions of the banking sector which were increasingly troubled by the threatening risks, Bank Indonesia required each bank to have an integrated risk management system. To minimize this risk, Basel II is applied to improve the standards for banks that go public in order to manage risk management properly. As a financial intermediary, the implementation of risk management is very important for banks to reduce losses. Maximum risk management for banks can ensure banks will survive destruction if a bad situation occurs. With the increasingly complex risks in the banking industry, Good Corporate Governance practices are needed. These efforts are carried out to avoid a banking crisis in the future.
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Yoseph Y.F., Deograsias. "Analisis Manajemen Risiko Pada Perusahaan Perbankan Yang Go Public." BIP's JURNAL BISNIS PERSPEKTIF 10, no. 2 (July 31, 2018): 161–74. http://dx.doi.org/10.37477/bip.v10i2.60.
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The expanding banking growth is followed by the increasing number of risks that
must be faced by banks. Along with the external conditions of the banking sector which were increasingly troubled by the threatening risks, Bank Indonesia required each bank to have an integrated risk management system. To minimize this risk, Basel II is applied to improve the standards for banks that go public in order to manage risk management properly. As a financial intermediary, the implementation of risk management is very important for banks to reduce losses. Maximum risk management for banks can ensure banks will survive destruction if a bad situation occurs. With the increasingly complex risks in the banking industry, Good Corporate Governance practices are needed. These efforts are carried out to avoid a banking crisis in the future.
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Lagasio, Valentina. "Corporate governance in banks: Systematic literature review and meta-analysis." Corporate Ownership and Control 16, no. 1-1 (December 28, 2018): 113–26. http://dx.doi.org/10.22495/cocv16i1c1art1.
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This paper provides a two steps investigation of the literature on banking corporate governance. We firstly perform a systematic literature review on the academics papers focused on risk management, compensation and ownership structure of banks. Then we run a meta-analysis investigation over more than 2,500 observations to clarify the understanding of the relationship with performance and risk in banks. The sub-group analysis related with bank performance shows a clear and significant finding: Board ownership, CEO ownership and Controlling shareholder enhance the performance of banks. Conversely, State ownership is negatively associated with bank performance. Results of the whole investigation and directions for scholars are also discussed.
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Morshed, Mohammad Niaz, Sardar Md Humayun Kabir, Md Muhibbullah, Rafia Afroz, and Fadhilah Binti Abdullah Asuhaimi. "Effects of Corporate Governance on Banking Performance of Commercial Banks in Bangladesh." International Finance and Banking 7, no. 1 (January 18, 2020): 1. http://dx.doi.org/10.5296/ifb.v7i1.15710.
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Corporate governance is the system by which organizations are directed, monitored and controlled. It is an oversight mechanism to ensure the management team efficiently allocates the organizational resources, so as to protect the interest of shareholders and stakeholders. There is a need for good corporate governance practice to stabilize the performance of financial institutions. This study investigated the influence of corporate governance in banking performance. Panel data analysis has been conducted for the top nine public and private commercial banks operating in Bangladesh for a period of 2009 to 2017. Board size, structure of internal audit committee and capital adequacy ratio were being taken as independent variables to measure the effects of corporate governance whereas return on asset, return on equity and earnings per share were being taken as dimensions for measuring bank performance. Correlation and regression analysis techniques were being used to examine the relationships between corporate governance practices and bank performance. The results indicated that CAR has the greater impact on Bank performance. The information derived from this study can be valuable and will help to enhance the understanding of the governing bodies of financial institutions for accelerating banking performance.
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Darma, Emile Satia, and Akhsyim Afandi. "The Role of Islamic Corporate Governance and Risk Toward Islamic Banking Performance: Evidence from Indonesia." Journal of Accounting and Investment 22, no. 3 (August 28, 2021): Layouting. http://dx.doi.org/10.18196/jai.v22i3.12339.
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Research aims: This study aims to analyze the role of Islamic corporate governance mechanisms on the performance of Islamic banks. Besides, it also analyzes the effect of risk profiles, especially those that are directly related to bank financing, on the performance of Islamic Banks.Design/Methodology/Approach: Sharia banks that become the objects are Sharia Commercial Banks (SCB) and Sharia Business Units of Conventional Banks (SBU). This study uses data from 20 sharia banks (11 SCB and 9 SBU). The analytical tool used in this study is panel data regression.Research findings: The results show that the meeting frequency of the Board of Commissioners, Sharia Supervisory Board (SSB), Financing to Deposits Ratio (FDR), and bank size have a significant positive effect on the performance of Islamic banks. Non-Performing Financing (NPF) has a significant negative effect on the performance of Islamic banks.Theoretical contribution/Originality: This study utilized Stakeholders theory, Maqoshid Sharia concept, and corporate governance to investigate the role of Islamic corporate governance mechanisms and risk management on sharia Banks performance.Practitioner/Policy implication: The implication of this study is that SSB activities had a direct and robust influence on Islamic Banks, which have relatively larger assets. Hence, the task of the Sharia Supervisory Board should not be limited to only monitoring the conformity of transactions with sharia but also providing input so that banks can increase their profits in line with sharia.Research limitation/Implication: The limitation in this study is the number of corporate governance variables that was limited.
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Rohaya, Mat Rahim Siti, and Fauziah Mahat. "Risk governance: Experience of Islamic banks." Risk Governance and Control: Financial Markets and Institutions 5, no. 2 (2015): 31–40. http://dx.doi.org/10.22495/rgcv5i2art4.
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Risk governance has evolved tremendously in the banking industry. Risk governance recommends the imperative roles of Chief Risk Officer (CRO) to oversee risk. This study explores risk governance influence over the Islamic banks performances. Multivariate analysis techniques measure simultaneously via Structural Equation Modelling (SEM). This study employed cross-sectional sample of 200 Islamic banks across 21 countries for the year 2014. To examine risk governance and Islamic banks performance, the study captures seventeen variables developed from risk management and corporate governance (ROA, ROE, Profit Margin, CRO, Shariah committee member, CEO, board size, remuneration meeting, credit rating, external audit, accounting standard, loan loss provision, capital adequacy ratio, total deposit ratio, GDP, central bank lending rate and inflation). The simulation result reveals, risk governance act as mediating variables towards Islamic banks performance. This study has practical and significance contribution for Islamic banks to understand risk governance, aligning with the fundamental risk management and corporate governance.
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Ungureanu, Maria Cristina. "Banks: regulation and corporate governance framework." Corporate Ownership and Control 5, no. 2 (2008): 449–58. http://dx.doi.org/10.22495/cocv5i2c4p6.
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The banking sector industry is somewhat unique because it is simultaneously consolidating and diversifying. Banks’ major role in stabilising the financial systems of countries and in spurring their economic growth explains the particularities of their own corporate governance. The specificity of banks, the volatility of financial markets, increased competition and diversification expose banks to risks and challenges. The banking industry is heavily regulated and supervised in every country around the globe. This, in turn, establishes a particular corporate governance system. The paper lays out the specific attributes of banks that influence their regulatory and supervisory environment, which, in turn, creates a unique corporate governance framework for the banking industry. The paper emphasises the benefits and limits of regulations and supervision on banks’ corporate governance and focuses its empirical results on the European Union countries.
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Butzbach, Olivier, and Kurt E. von Mettenheim. "Alternative Banking and Theory." Accounting, Economics and Law - A Convivium 5, no. 2 (July 1, 2015): 105–71. http://dx.doi.org/10.1515/ael-2013-0055.
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AbstractUnlike business models of private banks based on profit maximization and shareholder-oriented governance, alternative banks (such as cooperative banks, government savings banks, and special purpose banks) share business models based on sustainable returns with longer time horizons, corporate missions that include social and public policy goals, and stakeholder-oriented governance. Strong evidence from recent research suggests that alternative banks often equal or outperform joint-stock banks in terms of efficiency, profitability, and risk management. This counters core ideas in contemporary banking theory and expectations of regulators about the superiority of private ownership and market-based banking. Concepts and theories from banking studies help explain how alternative banks outperform private banks in core functions such as creating and managing liquidity, pooling deposits, and reducing information asymmetries and agency costs. However, heterodox theories of the firm and institutional approaches to competitive advantage broaden the scope of analysis to explain further historical, social, and organizational advantages (and risks) in alternative banking. Alternative banks therefore require, and may inspire, alternative theories of banking and new approaches to bank regulation.
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Azani, Achuzia Somuawine, Mei Yu, and Osita Chukwulobelu. "Corporate governance compliance and its effectiveness in the Nigerian banking industry." Corporate Ownership and Control 10, no. 3 (2013): 63–75. http://dx.doi.org/10.22495/cocv10i3art6.
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This paper examines the extent of compliance to the Central Bank of Nigeria (CBN) 2006 Corporate Governance Code by 24 Nigerian commercial banks and reveals a compliance level of 76.6%. The major non-compliance areas include non-constitution of a board committee consisting of non-executive directors, that regulates the compensation for executive directors, and the non-inclusion of independent directors on the main boards of many banks. Furthermore, the analysis shows that the benefits resulting from the changes for compliance outweigh the additional layers of supervisory checks and bureaucratic overbearing associated with the Code. The Code has brought about more effective corporate governance, accountability and greater transparency despite a low frequency of supervision and examination of the banks by the CBN.
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Adeyemi, Babalola. "Corporate governance in banks: the Nigerian experience." Corporate Ownership and Control 7, no. 4 (2010): 34–41. http://dx.doi.org/10.22495/cocv7i4sip5.
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Recent failures/collapse of high profit institutions around the world such as Enron, Parmalat, Worldcom, Barings Bank to mention just a few have shown that no company can be too big to fail. A common trend that ran through these monumental failures was poor corporate governance culture, exemplified in poor management, fraud and insider abuse by both management and board members, poor asset and liability management, poor regulations and supervision among others. This paper examines the conceptual framework of corporate governance. Some of the components of corporate governance in general and in the Nigerian banking sector in particular were identified and observed. Secondary sources were basically consulted for the purpose of this work and simple percentages were also used to explain a few of the findings. The study revealed that the boards of directors of a good number of these banks were ineffective and that the internal controls were equally weak as a result of the overriding influence of the chairman/chief executive officers. It was also observed that there were instances of insider abuses such as granting of insider related credits, huge non-performing loans and so on. In addition, lack of transparency and non-disclosure of financial transactions were very rampant in the banking sector in Nigeria according to the study carried out. Recommendations made include total separation of ownership from management, sound internal control system, full disclosure of all financial transactions and strengthening the enforcement mechanism of the regulatory authorities.
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Riabichenko, Dmitriy. "Organizational peculiarities of bank liquidity management: international experience and Ukrainian practice." Corporate Ownership and Control 11, no. 1 (2013): 907–16. http://dx.doi.org/10.22495/cocv11i1c11p2.
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Organizational component of liquidity management system is certainly formed under the influence of existing organizational stracture and subordinational links between the main governance structures of the bank. Taking into account the fact that Ukrainian legislation is developing very fast in order to implement the main international principles and best practices of banking regulation. Hovewer, national regulatory framework in the sphere of corporate governance and risk management in banks is still very weak. The main aim of this paper is to highlight the organizational peculiarities of such governance structures in banks as the board of directors, board committees (which operates on the strategic level) and bank’s treasury (which is involved in day-to-day management process) and compare the Ukrainian practice of functioning of these structures with foreign experienceto give precise recommendations concerning the issues of development of the organizational component of bank liquidity management system in Ukraine.
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Barako, Dulacha G., and Greg Tower. "Corporate governance and bank performance: Does ownership matter? Evidence from the Kenyan banking sector." Corporate Ownership and Control 4, no. 2 (2007): 133–42. http://dx.doi.org/10.22495/cocv4i2p13.
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This paper provides an empirical analysis of banks performance in Kenya. The primary purpose of this study is to investigate the association between ownership structure characteristics and bank performance. Data utilised in the study is collected from the Financial Institutions Department of the Central Bank of Kenya, both on-site inspection reports and off-site surveillance records. Empirical results indicate that ownership structure of banks significantly influence their financial performance. In particular, board and government ownership are significantly and negatively associated with bank performance, whereas foreign ownership is strongly positively associated with bank performance, and institutional shareholders have no impact on the performance of financial institutions in Kenya. The study makes a significant contribution to financial research by extending examination of banks performance to a developing country context beyond the usual confines of the developed western economies, and adds to the small number of similar studies in the African context. The results are consistent with prior research findings, and more importantly, presents statistical justification for pursuing further corporate governance reforms with respect to banks’ ownership structure to enhance the financial stability of the sector
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Orazalin, Nurlan. "Corporate governance and corporate social responsibility (CSR) disclosure in an emerging economy: evidence from commercial banks of Kazakhstan." Corporate Governance: The International Journal of Business in Society 19, no. 3 (June 3, 2019): 490–507. http://dx.doi.org/10.1108/cg-09-2018-0290.
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Purpose This paper aims to explore the extent and nature of corporate social responsibility (CSR) reporting practices in the banking sector of Kazakhstan and investigates the effects of board characteristics on CSR disclosures in the given emerging economy. Design/methodology/approach Data on CSR disclosures were manually collected from annual reports of all commercial banks listed in the Kazakhstan Stock Exchange (KASE) for the period 2010-2016. Financial data were obtained from audited financial statements available on bank websites and the Web page of the National Bank of Kazakhstan. Findings The empirical results reveal that board gender diversity has a positive influence on CSR reposting, while board size and board independence have no impact on the level of CSR disclosures. Furthermore, the results show that bank size and bank age are significant factors in the dissemination of CSR disclosures. Additionally, the findings suggest that banks with a share of foreign ownership disclose more extensive and transparent information on CSR activities than banks owned by local investors and state-owned banks. Originality/value The study provides evidence on the relationship between corporate governance and the level of CSR in the context of an emerging economy such as Kazakhstan, representing the Central Asian region. The study contributes to the current literature by focusing on the banking sector of Kazakhstan as a research context due to its substantial representation in the capital market of the given emerging economy.
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Jumaa, Muhamad AbdulAziz Muhamad Saleh. "The Effect of Corporate Governance on Bank Performance Evidence From UAE." International Journal of Corporate Finance and Accounting 7, no. 1 (January 2020): 16–38. http://dx.doi.org/10.4018/ijcfa.2020010102.
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Banks in UAE vary in their sizes, growth, market share, levels of market competition, complexity of financial instruments, etc. that impact their profitability. This reflects their management activities and, more generally, the way they develop and implement banking strategies that ensure growth and value creation and balancing out interests of all stakeholders involved. The researcher has a desire to have an in-depth understanding of banks in UAE. Considering how the banks are risk tolerant, manage different operations and departments, formulate strategy, and incorporate appropriate corporate culture, the researcher attempted to know the effect of corporate governance on banks performance. The area of this research is not easy to find a comprehensive topic in, at least not in the Middle East. The motivation behind this paper is to explore the UAE national banks' practices of corporate governance. The researcher analyzed corporate governance framework in UAE banks to study whether it help develop a sustainable risk/reward strategy for the banking industry in UAE. In order to examine the relationship between corporate governance and performance in UAE banks, the researcher prepared a detailed questionnaire to and collected data from the respondent. The research hypothesis was there is no correlation between the indicators of CG and the indicators of profitability in UAE commercial banks for 2017. The importance of this study revolves around the fact that the relationship between stakeholders and return levels are highly related to the finance and banking sector, and governance structure of any bank is fundamental to its existence; therefore, the role of CG is of great importance, and conducting practices and processes and formulating appropriate actions that could adapt to any risk level and provide the right alternative set of actions is important. The researcher attempted to study and test the causes that CG has on the bank performance. This causal study type of research leads us to classify it mainly into the explanatory type. Even though there is a description at the beginning about CG and profitability of banks, the ultimate goal is to test the impact of CG on banks profitability. The researcher employed the CG Index, descriptive statistics, correlation matrix, and multivariate regression to analyze the relationship between CG implementation and UAE banks' performance and test the hypotheses. Findings of the study revealed that several banks in UAE handle CG in a “checklist” approach, different from other regions which apply governance into practice. CG also handles the non-financial aspects. An important CG model has been developed by COSO that helps banks achieve their performance objectives in a management-adjusted way. It is assumed under normal conditions that the CG enhances bank performance. However, this depends on the quality of corporate governance implemented. The variables taken into account that would have a positive effect on performance were all the control variables. The regression models that were used to test the hypotheses did not support it. The effect of CG indexes showed that CG does not automatically result in better performance. Validity tests showed that model has to be improved, considering some moderate evidence on ROE. Forty percent of the variation in the ROE and a small amount of variation in ROA and PM are explained by the predictor variables used. An important CG model has been developed by COSO that helps banks achieve their performance objectives in a management-adjusted way. It is assumed under normal conditions that the CG enhances bank performance.
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Ginena, Karim. "Sharī‘ah risk and corporate governance of Islamic banks." Corporate Governance 14, no. 1 (January 28, 2014): 86–103. http://dx.doi.org/10.1108/cg-03-2013-0038.
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Purpose – The purpose of this paper is to help directors, senior management, and stakeholders of Islamic banks understand sharī‘ah risk, a crucial consideration in the corporate governance of Islamic banks, and its impact on these banks. Design/methodology/approach – This conceptual paper links dispersed insights drawn from the emerging body of sharī‘ah governance literature, and the guidance issued by the Basel Committee on Banking Supervision (BCBS), the Islamic Financial Services Board (IFSB), and the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) with new insights to clarify the sharī‘ah risk that Islamic banks face. Findings – Sharī‘ah risk, an operational risk, poses a credible hazard to Islamic banks and their stakeholders. Possible consequences of sharī‘ah non-compliance include higher costs, financial losses, liquidity problems, bank runs, bank failure, industry smearing and financial instability. This study defines shariah risk, identifies credit, legal, compliance, market, and reputational risk that it may evoke, and categorizes its causes and events. Research limitations/implications – Future research could empirically test the ideas posited. In this paper claims were substantiated by logic and examples. Practical implications – The study devises an instrument for assessing sharī‘ah risk, and suggests measures for directors, senior management, and regulators to mitigate this risk. Originality/value – This is the first study to focus on the implications of sharī‘ah risk, delineate examples of events and incorporate them within the BCBS operational risk causes, and develop a tool for measuring sharī‘ah risk.
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Badrul Muttakin, Mohammad, and Md Shahid Ullah. "Corporate governance and bank performance: Evidence from Bangladesh." Corporate Board role duties and composition 8, no. 1 (2012): 62–68. http://dx.doi.org/10.22495/cbv8i1art5.
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The study investigates the relationship between the corporate governance structure and performance of listed banks in Bangladesh. We find that board independence and board size have a significant positive impact on performance. However, female directors appear to have no impact on performance. Our evidence indicates that the extent of the managerial ownership level has a significant negative impact on bank performance. These results suggest that better corporate governance mechanisms are imperative for every banking company and should be encouraged for the interest of the investors and other stakeholders.
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Scherbina, Tatiana, Olya Afanasieva, and Yulia Lapina. "Risk management, corporate governance and investment banking: The role of chief risk officer." Corporate Ownership and Control 10, no. 3 (2013): 313–30. http://dx.doi.org/10.22495/cocv10i3c2art5.
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This paper focuses on the defining the role of CRO in corporate governance and to show the interrelation between the way of CRO subordination and performance of investment bank. The sample consists of observations over a period of 2011 for 29 biggest investment banks (by amount of assets) implementing world-wide investment activity. The banks are originated in the USA (8), Eastern Europe (14), China (2), Japan (2), Canada (2), and Australia (1). With the aim to evaluate and compare financial performance of selected banks the construction of synthetic key performance indicator (SKPI) is worked out. The empirical analysis of risk management in the research is based on two different groups of factors, which could be used to evaluate the effectiveness of risk management in this sphere: analysis of CRO impact - Risk Management Committee factors and CRO factors, and Evaluation of Financial Performance. Results show that the CRO presence in investment banks effect positively on the financial performance.
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Dibra, Rezart, and Jetmir Bodini. "Corporate governance in Balkan financial institution, case of Albania." Risk Governance and Control: Financial Markets and Institutions 3, no. 2 (2013): 30–38. http://dx.doi.org/10.22495/rgcv3i2art2.
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Corporate governance has at its backbone a set of transparent relationships between an institution’s management, its board, shareholders and other stakeholders. In this article, in the first part, the nature and purpose of corporate governance has been discussed with special emphasis on the problems of banks in the field of corporate governance. Corporate governance involves regulatory and market mechanisms, and the roles and relationships between a company’s management, its board, its shareholders and other stakeholders, and the goals for which the corporation is governed. Lately, corporate governance has been comprehensively defined as "a system of law and sound approaches by which corporations are directed and controlled focusing on the internal and external corporate structures with the intention of monitoring the actions of management and directors and thereby mitigating agency risks which may stem from the misdeeds of corporate officers. The financial crisis exposed flaws throughout financial markets and prompted much investigation into the way banks work. The ‘2008 crisis in the financial industry, among other causes, brought to light the conflict of interest between achieving aggressive results by the executives in order to obtain bonuses and the long-term risk associated with the commercial company in its business. This paper focuses on one line of investigation - the corporate governance of banks. It examines why governance of banks differs from governance of nonfinancial firms and where the governance of banks failed during the crisis; it also offers recommendations for improving the governance system. Bank governance has been the topic of much recent academic work and policy discussion (Senior Supervisors Group 2008, 2009; Walker Report 2009; Committee of European Banking Supervisors 2010). Because of their contemporaneous nature, there has been little connection between the academic approach and policy analysis. The purpose of this paper is to make such connections and ground the policy debate on scientific evidence. The Corporate Governance in banks is one of the most important discussions overall the world, being reinforced especially after the crises period. It is related with the sensitive situation and the stage of developments of the local economy and moreover with the impact of the crises that is still ongoing. As an answer, during late 2008 and beginning 2009, it has been noticed a fast reaction and total focus from all banks on building (if missing) and improving their structures of Corporate Governance. The liquidity problems suddenly affecting the banking sector constrained Banks to enlarge their activities / operations and forced them in better evaluating their investments. The importance of a strong financial sector in impacting the country’s economy growth through both level of banking development and stock market liquidity (Levine and Sara Zervos 1996, 1998) is quite evident even in the developing countries. Moreover, Peter Rousseau and Watchel (2000) findings’ confirm the positive impact of the stock market activity and the banking development. For this reason the governments in the developing countries are insisting in increasing credits of banks towards the private firms. The banking system in Bulgaria, Romania, Serbia and Albania has certain similarities in terms of development stage, related with the economic growth rate as well. The banking system, there is operating for more than 100 years instead of 15-20 years of development in the remaining countries.
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Ghosh, Saibal. "Corporate governance reforms and bank performance: evidence from the Middle East and North Africa." Corporate Governance: The International Journal of Business in Society 17, no. 5 (October 2, 2017): 822–44. http://dx.doi.org/10.1108/cg-11-2016-0211.
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Purpose The purpose of the study is to understand the importance of corporate governance reforms for the Middle East and North Africa (MENA) country banks. To address this issue, the author combines the staggered timing of corporate governance reforms for banks across MENA countries with bank-level data for the period 2000-2012 and examine the impact on bank performance. Design/methodology/approach The author employs fixed effects regression within a difference-in-differences specification for the analysis. Findings The analysis suggests that not all governance characteristics are equally effective and some of these characteristics exert a more pronounced effect on bank performance as compared to others. These results also vary across oil-exporting and -importing nations and differ during the crisis. Besides, the authors find that improved operating efficiency and access to finance are the key channels through which governance improves bank performance. Practical implications Corporate governance reforms in the MENA countries need to be carefully tailored, taking into account the inherent economic characteristics of the country for it to exert durable impact. The challenge for policymakers is to find the right balance that can ensure maximum benefits for the banking sector, while minimizing the challenges involved in its implementation. Originality/value To the best of the authors’ knowledge, this is one of the earliest studies for MENA country banks to examine the interface between corporate governance reforms and bank performance, while controlling for the possible endogeneity of such reforms on performance.
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Hafez, Hassan M. "Corporate governance and financial performance: An empirical study on Egyptian banks." Corporate Ownership and Control 13, no. 1 (2015): 1359–74. http://dx.doi.org/10.22495/cocv13i1c11p8.
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There is a distinct lack of research into the relationship between corporate governance and banks’ financial performance in the banking sector in Egypt. This research paper tries to fills this gab by examining the impact of corporate governance, with particular reference to the role of board of directors and ownership concentration, on the financial performance of Egyptian banks. Using a sample of 39 banks represent all commercial banks operate in Egypt for the period 2004– 2015 and controlling banks size and age. The study relied on the data through the annual reports of the respective banks, website of the central bank of Egypt and Data scope. The banks were selected for the study cutting across the local Islamic and Conventional banks, foreign Islamic and conventional banks, and regional Islamic and conventional banks. The results showed that banks ownership either foreign or national has an obvious effect on the banks’ financial performance. Board size has no significant effect. However, the hierarchy of the board of directors and the duality of the CEO has a direct effect on the banks financial performance in Egypt.
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Matuszak, Łukasz, Ewa Różańska, and Małgorzata Macuda. "The impact of corporate governance characteristics on banks’ corporate social responsibility disclosure." Journal of Accounting in Emerging Economies 9, no. 1 (February 4, 2019): 75–102. http://dx.doi.org/10.1108/jaee-04-2017-0040.
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Purpose The purpose of this paper is to investigate the extent and trend of corporate social responsibility (CSR) reporting in commercial banks in Poland and examine the link between corporate governance characteristics, namely size of the bank, ownership, boards size, board diversity and CSR disclosures in the banks. Design/methodology/approach The annual reports and CSR reports of the banks were examined between 2008 and 2015 using content analysis and panel data analysis. Findings The results indicate that banks improved their CSR reporting practices during examined period. There are statistically significant differences in the level of CSR disclosures between banks with a different ownership structure. Both foreign majority shareholder group as well as state majority shareholder group have a positive influence on CSR as compared with Polish majority shareholder (PMS) group (excluding State). Moreover, being listed on stock exchange has a positive influence on CSR as compared with not being listed. Further, the results also revealed that there is a significant positive effect of almost all variables related to the management board, namely, size, female board leadership and foreign board members on CSR disclosure, whereas all supervisory board variables and all considered ownership variables have no statistically significant impact on CSR disclosure. Originality/value This research contributes to the existing literature because the banking sector is often excluded from CSR studies due to its specific legal regulations and seemingly little environmental impact. Moreover, there are only few studies analysing the effect of boards characteristics on the banks CSR disclosure, especially in emerging countries. This study is also the first of this kind focusing on the two-tier system. Furthermore, the study provides the instrument to measure CSR in the banking industry. Finally, the research stresses the crucial implications for banking sector, shareholders and regulatory bodies.
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Handa, Rekha. "Does Corporate Governance Affect Financial Performance: A Study of Select Indian Banks." Asian Economic and Financial Review 8, no. 4 (March 21, 2018): 478–86. http://dx.doi.org/10.18488/journal.aefr.2018.84.478.486.
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Need of corporate governance in present times is intense especially when the global instances of corporate failures and mismanagement are many. The eminence and uniqueness of banking firms necessitates the need of rational corporate governance practices more so with the added emphasis of Basel Committee on Banking Supervision. The study attempts to examine the role of board structures in the financial performance of select banks over a time span of 2008-15 in India where banking and governance both have hogged the limelight sadly for not very pleasant reasons. Analyzing a small sample of 70 firm entries through panel regression, the study establishes Chairman-CEO duality, average remuneration of directors, board committees and female directors as significant influencers of bank performance. Certain limitations of the study though challenge the generalization of results but it forms a good basis for further research.
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Nobanee, Haitham, and Nejla Ould Daoud Ellili. "The impact of the mandatory corporate governance disclosures on the banking growth in UAE: Islamic versus conventional banks." Corporate Ownership and Control 12, no. 1 (2014): 717–22. http://dx.doi.org/10.22495/cocv12i1c8p4.
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The aim of this paper is to measure the degree of mandatory corporate governance disclosure and examine its impact on the bank’s growth using annual data for listed banks on the UAE financial markets during the period 2003-2013. Our empirical results show that the degree of mandatory corporate governance disclosure of conventional banks is significantly higher than the Islamic banks. In addition, the degree of mandatory corporate governance disclosure is significantly and positively related to the growth of deposits for both Islamic and conventional UAE listed banks
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Malik, Maria, Difang Wan, Muhammad Ishfaq Ahmad, Muhammad Akram Naseem, and Ramiz Ur Rehman. "Role Of Board Size In Corporate Governance And Firm Performance Applying Pareto Approach, Is It Cultural Phenomena?" Journal of Applied Business Research (JABR) 30, no. 5 (August 27, 2014): 1395. http://dx.doi.org/10.19030/jabr.v30i5.8795.
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<p>This paper examines the relationship between board size and firm performance. This relationship is tested in the light of Pareto Approach for Pakistani banking sector. For this purpose a sample of fourteen listed commercial banks of Pakistan are taken for analysis from 2008-2012 on the basis of their performance. Different econometric models are applied to test the relationship between bank performance variables and corporate governance practices in these banks. The results of this study are contradictory with the existing literature of corporate governance variables and firm performance. The most prominent result of this paper is the significant positive relationship between board size and bank performance. It is concluded in the findings that a large board size can enhance the bank performance in Pakistani scenario.</p>
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Gunay, Suleyman Gokhan, and Mustafa Heves. "The impact of corporate governance on Turkish banking sector during economic crisis: The test of instrumental stakeholder theory." Corporate Ownership and Control 8, no. 3 (2011): 28–41. http://dx.doi.org/10.22495/cocv8i3p3.
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The aim of this paper is to show the relationship between corporate governance and bank financial performance during economic crisis. In other words, a stakeholder governance model is developed in order to test the instrumental stakeholder theory during economic crisis. It is found that the average return on equity for the group of banks that use stakeholder governance model is approximately 70% higher than the group of banks that use stockholder governance model in Turkey during the economic crisis period (2007-2009). These findings show the importance of stakeholder governance model during the economic crisis. In other words, it is found that banks immunized themselves against the effects of economic crisis in terms of their financial performance
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Lesmana, Iwan. "RISIKO OPERASIONAL BANK DAN PERMODELANNYA." INDONESIAN JOURNAL OF ACCOUNTING AND GOVERNANCE 1, no. 1 (December 10, 2019): 28–43. http://dx.doi.org/10.36766/ijag.v1i1.2.
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Managing bank’s operational risks becoming an important feature of sound risk management practice in modern financial markets. The most important types of operational risk involve breakdown in internal controls and corporate governance, which could lead to financial losses through fraud, error or failure to perform. Development of statistic has accelarated banks to create internal operational risk models in different ways. Although those models created in different ways, they surely use the pattern of risk management that is developed by Basel Committee on Banking Supervision. Basel Committee on Banking Supervision has proposed three increasingly sophisticated approaches of operational risk, i.e basic indicator approach, standardized approach and advanced measurement approach. Applying those approaches will help banks to eliminate the operational risk, that will lead them to a better intermediation process.
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Taşkin, F. Dilvin. "Bank governance and bank performance in Turkish banking industry: the analysis of static, selection and dynamic ownership effects." Corporate Ownership and Control 7, no. 4 (2010): 42–48. http://dx.doi.org/10.22495/cocv7i4sip6.
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Turkish banking has undergone a rapid consolidation process in the forms of domestic mergers and acquisitions and foreign acquisitions. This paper analyzes the effects of corporate governance on the performance of the Turkish commercial banks, using the data from 1995 to 2008. The paper considers the static, selection and dynamic effects of domestic, foreign and state-ownership on bank performance. The results show that state-owned banks have strong long-term performance, whereas the foreign banks have poor long-term performance. The selected banks for domestic M&As and for foreign acquisitions tend to perform better. The dynamic indicators show that the merged banks show inferior performance than their counterparts.
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Mizuno, Mitsuru. "Evolution of corporate governance of banks in Japan: Some lessons for other countries." Corporate Ownership and Control 8, no. 2 (2011): 6–13. http://dx.doi.org/10.22495/cocv8si1p1.
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This paper describes the evolution of corporate governance of banks in Japan. Banks had no serious problems and governance of banks was not paid so much attention until the banking crisis in the 1990s due mainly to the strict regulation by the government. However, it became apparent that non-performing loans had something to do with the governance of banks. The stakeholders of banks are different from those of non-financial institutions: the regulators and depositors play an important role as monitors of banks. The stakeholders as well as the banks’ themselves have undertaken to enhance the governance system in order to increase accountability and transparency. In this process, competitive banking sector, adequate banking regulation, and deposit insurance with limited amount of depositor’s protection system have become essential in strengthening the governance mechanism of banks.
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Surifah. "The effect of the type of controlling shareholders and corporate governance on real and accruals earnings management." Corporate Ownership and Control 13, no. 1 (2015): 917–35. http://dx.doi.org/10.22495/cocv13i1c8p10.
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This research investigates the relationship between corporate governance and preference of earnings management selected by Indonesian banking controlling shareholders. This study uses all banks listed on Indonesian Stock Exchange from 2006 until 2011 as samples. The result shows higher real earning managements and lower accruals discretionary in family-controlled banks and private institution compared to government-controlled banks. Government-controlled banks prefer accrual-based earnings management and real activity-based earnings management through operating cash flow. In the other hand, family-controlled banks and private institutions prefer real earnings management through interest expense and discretionary expenses. Foreign-controlled- banks choose earnings management through discretionary expenses. The implementation of corporate governance in Indonesia banking is high and giving negative impacts both to accrual and real-based earnings management. Concentrated ownership gives positive influences toward the accrual earning management and real earning management through discretionary expenses. The bank size has a positive and significant influence on accrual earnings management, yet its effect is negative and significant on real earning management through interest expenses. The findings contribute to the development of financial accounting literatures because there are small numbers of previous research on accrual discretionary on family-owned companies. Company does not indicate the increase of earnings quality, but it is indeed indicating that controlling family pays more attention on choosing the real activity-based earnings management to cover the expropriation. Accrual discretionary-based earnings management is intra-period reversely thus it cannot cover the permanent expropriation of controlling owners. The research also contributes to the studies of real-based earnings management measurement in banking system which has not been become a concern of research on previous studies.
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Hoti, Arber, and Arben Dermaku. "Corporate Governance in the Banking Industry of Kosovo." International Journal of Finance & Banking Studies (2147-4486) 7, no. 3 (February 25, 2019): 20–34. http://dx.doi.org/10.20525/ijfbs.v7i3.184.
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The main purpose of this research is to study the impact of corporate governance on the financial performance of the banking sector in Kosovo. To analyze this impact, the Pearson correlation coefficient, multiple regression analysis related to the board size and board independence and banking sector performance in Kosovo were applied. The key corporate governance variables that have been studied in this research are: (i) size of the board of directors, (ii) the independence of the board of directors (the ratio between non-executive directors and the total number of board members). The data for this research were collected from the annual reports and audited financial statements of commercial banks in Kosovo for the 12 year period (2006-2017) and from questionnaires addressed to board members of commercial banks in Kosovo as well as other publications from relevant local institutions such as the Central Bank of Kosovo (CBK), Statistical Office of Kosovo (SOK), Tax Administration of Kosovo (TAK), etc. The results of the multiple regression analysis regarding the influence of the board of directors on the financial performance of the banking sector indicate that: the size of the board of directors and the independence of the board of directors have a positive and significant impact on the financial performance of the banking sector in Kosovo, expressed through return on assets (ROA) and return on equity (ROE). Findings of this research are in line with the findings of other researchers in this field and confirm the assertion that the management of the above variables improves and has a positive impact on the financial performance of banks in Kosovo.
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Nugraheni, Ponti Primastuti Aulia. "PENERAPAN CORPORATE GOVERNANCE DENGAN MENGGUNAKAN BALANCE SCORECARD PADA BANK MANDIRI JEMBER." BISMA 11, no. 3 (January 3, 2018): 378. http://dx.doi.org/10.19184/bisma.v11i3.6478.
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Abstract: Good corporate governance is a barometer of for a company accountability. A poor corporate governance implementation is presumed as one of the causes of various corporate financial business scandals. Banking companies deal directly with the provision of goods and services to meet the wants and needs of the community. In this case, the community is the customer that must be served well in order to meet their satisfaction by applying a good organizational management mindset to improve the customer (community) satisfaction. Applying the Balanced Scorecard (BSC) approach, banks will be able to explain their mission to the community, identify the indicators of public satisfaction more transparently, objective, and measurable, and identify the work processes and the quality of human resources needed to achieve their mission and vision. In the implementation process, the banking activities will produce a community-oriented strategic management system.
Keywords: Corporate Governance, Bank, BSC.
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Sorour, M. Karim, and Kerry E. Howell. "Corporate governance, substantive theory and sociological institutionalism: The case of the Egyptian banking sector." Corporate Ownership and Control 10, no. 1 (2012): 647–58. http://dx.doi.org/10.22495/cocv10i1c7art1.
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Banking organizations have peculiar characteristics that make it difficult for them to adopt and apply traditional corporate governance models. However, little attention has been given to understanding and theorizing banking corporate governance. Deploying a grounded theory methodology this paper develops a substantive theory of banking corporate governance within Egypt. Subsequently, through sociological institutionalism the substantive theory is further analyzed and assessed; findings indicate that banking corporate governance is an evolving context or contingency based phenomenon. Corporate governance for banks in Egypt involves an institutionalization process based on regulative and normative pressures that looks to ensure legitimacy from shareholders, regulators and depositors. This said, to maintain legitimacy banks either comply or disguise their non-compliance. Overall, this paper contributes to non-traditional corporate governance theorizing and offers policy-makers a distinct in-depth understanding of the phenomenon.
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Yeshchenko, M., and I. Safronska. "Corporate management in the banking sector of the national economy: problems and solutions." Galic'kij ekonomičnij visnik 70, no. 3 (2021): 148–57. http://dx.doi.org/10.33108/galicianvisnyk_tntu2021.03.148.
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Current trends in the development of Ukrainian banks are associated with the intensification of financial globalization processes. Under the influence of the growing presence of foreign capital, Ukrainian banks have faced increased competition and an exacerbation of the problem of limited financing in the domestic market. In the open national market, banks are forced to look for competitive advantages in order to improve access to financial resources and implement effective long-term partnerships with foreign investors. The creation of quality corporate management under international standards is an important advantage for the investors. The need to increase the level of corporate management according to the best international practices determines the importance of the investigation and substantiation of the areas for improvement based on the analysis of internal factors and conditions of banking business development. Conflict of interest is a major problem of corporate management. The investment community, professional circles, as well as regulatory authorities of the countries pay great attention to the problems of organizing relations of companies and banks with shareholders and other stakeholders. There are some approaches to determining the range of stakeholders. Managers and shareholders are considered in the narrow sense. In the broad sense, the list can include all the possible stakeholders. High quality of corporate management is one of the key conditions for bank efficiency. The interests of the owners are completely consistent with the achievement of high profitability, which is the main criterion of efficiency. In turn, the requirements of creditors to the level of risk on the operations of the credit institution is largely the factor of its sustainability in the long run. The ways of solving problems of corporate governance in banks are proposed in this paper. The theoretical foundations of corporate management in banks are substantiated. The specifics of the organization of relations between the participants of corporate relations in the bank are highlighted. It is noted that many issues related to corporate management in credit institutions lie outside the legal system and are ethical rather than legal.
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Khudoliy, Lyubov, and Oleg Bronin. "Transformation of the Ukrainian banking system regulation: a new horizon of compliance with the international framework." Banks and Bank Systems 14, no. 4 (November 28, 2019): 22–33. http://dx.doi.org/10.21511/bbs.14(4).2019.03.
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This article discusses the latest methodological recommendations of the Basel Committee on Banking Supervision developed in response to the effects of the global financial crisis and known as Basel III. The purpose of the study is to explore scientific approaches to justifying bank regulation as a key condition for overcoming the economic crisis and improving financial sustainability. The object of research is Basel III instruments that will be implemented in the bank regulatory policy of Ukraine. The systematic approach and systemic thinking used in the article allow one to substantiate the expediency of Ukrainian banking institutions’ governance based on the risk-oriented approach and to determine the strategy of bank supervision for the next 1-3 years. The study evaluates the results of stress testing of the largest banks in Ukraine. Thus, the results confirm that the banking sector in Ukraine is sufficiently capitalized in the absence of macroeconomic shocks, but in case of a crisis, some of these banks are not protected. Therefore, the article formulates recommendations for improving the regulation of these banks, the phased implementation of Basel III, the application of new principles, standards, tools and methods, corporate governance and risk management in Ukrainian banks.