Effect of Corporate Governance Practice on Private Banking in Iraq: Empirical research in private banking in Iraq

Abstract

The research will examine if private banks in Iraq practice principles of corporate governance which were suggested and confirmed by the Basel Committee on Banking Supervision (2000). The aims of the research are identify the role of BOD and CEO in corporate governance practice, role and experience of board directors in corporate governance practice, and the role of compliance policy in corporate governance practice. The research collected data by distributing 120 questionnaires randomly to high-level bank employees involved in corporate governance. The target population comprises credit risk managers, head departments, CEO, and board members. The researcher designed a questionnaire that include 92 closed questions. The research shows that private banks in Iraq, in general, are effective in applying the principles of corporate governance from the point of view of the respondents in general. The research finds also that the internal audit function assists effective manner senior management and the board of directors in the efficient and effective discharge of their responsibilities.