Reshaping Bank Leadership and Governance in the Context of New Normal

Abstract

The global banking industry is taking a changed shape. Innovation, technologyled disruption, convergence, and data analytics are reshaping the banking industry. Considering the market development and concerns associated with the Covid-19 crisis, banks should focus on capital, liquidity, operational capacity, customers’ preferences, financial infrastructure, business restructuring, regulatory compliance issues, financial crime, and cybersecurity concerns. A transformed and integrated strategy by the banking institutions to handle these issues is connected with effective business continuity measures and long-term business development. The transformation is necessary to sustain and avail the opportunity to leverage banks’ role in economic support programs to improve their reputation and speed up digitisation and digitalisation. In such a stage of transformation, demands from banks’ leadership have become exponentially more significant, which is not easy to meet. From the risk management standpoint, this is the time for adopting an enterprise approach to cope with the changing environment. Improved and reshaped corporate governance in banks might help handle the situation better in this complex situation. The paper’s objective is to sketch the reshaped leadership and governance practices for the banking industry in the wake of the Covid-19 scenario. The paper identified an indicative leadership-governance framework for the long-term sustainability of banks.