Corporate Governance In Banking Sector Research Articles

КОРПОРАТИВНОЕ УПРАВЛЕНИЕ В БАНКОВСКОМ СЕКТОРЕ РОССИИ В УСЛОВИЯХ НЕБЛАГОПРИЯТНЫХ ФАКТОРОВ ВНЕШНЕЙ СРЕДЫ

The article presents an assessment of the impact of adverse environmental factors on corporate governance in the Russian banking sector. The specifics of national banking corporate governance are revealed. It is concluded that it is necessary to use built-in adaptation mechanisms in the corporate governance system of the banking sector. The main threats from the external environment related to the impact of the package of US and EU sanctions on the financial system of the Russian Federation are identified. Possible ways of using corporate governance tools to smooth out negative influences and reduce the degree of risk in the banking sector are considered. A proactive approach and a focus on maintaining a balance of interests of all interested groups are proposed as the main vectors for the development of corporate governance in the banking sector.

The Analysis of Corporate Governance on Non-Performing Loans: Evidence from Indonesia

Objective – This study aims to know the impact of corporate governance mechanisms on the non-performing loan of a bank. This study also aims to analyze which corporate governance aspects are significant to the banks’ non-performing loans in Indonesia. Another objective of this study is to examine whether the relationship between corporate governance and non performing loan depends on bank ownership. This study’s corporate governance variables are the board size, board independence, and bank ownership category. This study focuses on the non-performing loan of the banks in Indonesia.
 Methodology – This study will examine 26 banks in Indonesia listed on the Indonesian Stock Exchange (IDX). It includes both foreign-owned (foreign bank) and domestic banks. The length of the period of observation is seven years, from 2012 to 2018. Panel data of these banks are analyzed using the fixed-effect regression.
 Findings – The regression result shows that board size and bank ownership category have no significant impact on the non-performing loan, while the board independence impacts non-performing loans negatively.
 Novelty – This study contributes to the academic literature, specifically on the issue of corporate governance in the banking sector. This study’s result and findings could be used as the reference for other studies and further research on the corporate governance issue. This study will also expand the literature about corporate governance in the Indonesian banking sector since there are still a limited number of studies that discussed this specific matter.

Change in Scenario in Corporate Governance in Banking Sector in India

Change in Scenario in Corporate Governance in Banking Sector in India

Principi korporativnog upravljanja u bankama i legislative Republike Srbije

Complex relations, a frequent separation of ownership, management, and control functions in banks, as well as turbulent and changeable market conditions make responsible, fair, and transparent corporate governance mechanisms extremely important for these financial institutions. "the culture" of the corporate governance is incorporated into the banking sector of Republic of Serbia and it is based on the national legislation and international governance standards. The aim of the research is to analyze the level of the implementation of international principles of corporate governance in the Serbian banking sector and to assess the adequacy and strength of the national legal and regulatory framework to enable and support such an act. The descriptive method, an analysis and synthesis technique, as well as the analysis of the content of laws, reports, and available national and foreign literature in the field of corporate governance, were used for the preparation of this paper. The result of the research implies the confirmed assumption that the legal and regulatory framework of corporate governance in the banking sector of Republic of Serbia makes the implementation of the international principles of corporate governance possible and sufficiently supports it.

CORPORATE GOVERNANCE IN THE COOPERATIVE BANKING SECTOR IN POLAND

The corporate governance principles in the cooperative banking play crucial role in complementing institutional supervision and supporting internal controls. This paper discusses the selected issues of corporate governance in the cooperative banking sector in Poland. It outlines the contemporary challenges of corporate governance principles in the Polish cooperative banking sector related to external and internal supervision of banking activity. In addition, this paper aims to answer the question whether and to what extent the Polish cooperative banks have adopted the recommendation of the Polish Financial Supervisory Authority with regard to corporate governance in the banking sector and the extent to which internal rules for the organization of these banks affect the efficiency and effectiveness of the market. As a result, the following hypothesis was put forward: implementation of the corporate governance principles in the Polish cooperative banks has not contributed significantly to the improvement of their efficiency and has not enhanced the institutional supervision and internal controls in the cooperative banks. According to the authors, despite the existence of corporate governance principles in all Polish cooperative banks, there is still problem with the effectiveness of these institutions. Cooperative banks in Poland have experienced the phase of lethargy since 2013 and reported weaker and weaker financial results. Having in mind the fact that in 2015, that is after 14 years of stability in the sector, one of the Polish largest cooperative banks, SK-Bank, got bankruptcy, nobody predicted this event. It concludes that when it comes to the corporate governance principles the management bodies, regulators as well as supervisors require more effectively cooperation. The results in this paper confirmed that the model of credit cooperative movement adopted in Poland requires implementation of a couple of basic changes that are directly related to the utilization of the principles of a good corporate governance. The current corporate governance rules in Polish cooperative banks lead to having standardised governance without any substantial improvements and promoting better governance.

Role of Corporate Governance in Banking Sector: Evidence from All Over the World

Authors: Anastasia N. Stepanova National Research University The Higher School of Economics, anstepanova@hse.ru
 Olga Mikhailovna Ivantsova
 This paper is focused on the recent research in the area of performance effect of corporate governance in banking sector. We review the results of studies devoted to two key nonfinancial characteristics of a commercial bank influencing its performance. In the first part of the paper we analyze the evidence on board of directors structure impact on bank performance. We focus on the performance effect of board size, independent directors and gender diversity of the board. In the second part we discuss the issue of bank ownership structure. In this paper we pay special attention to the difference between performance drivers in developed and emerging markets as well as to the performance drivers changes in times of financial crisis.

Corporate Governance in Banking Sector: A Case study of State Bank of India

The issue of corporate governance has come up mainly in the wake up economic reforms characterized by liberalization and deregulation. Corporate governance has at its backbone a set of transparent relationships between an institution's management its board, shareholders and other stakeholders. The objective of the research paper is to evaluate the corporate governance practice in banking sector particularly in the State Bank of India. For evaluation purpose, this research paper is divided into two parts. With the help of secondary data, this work was analyzed and based on different elements of the practice of corporate governance evaluated in State Bank of India. The Indian banking system is among the healthier performers in the world. In the liberalized economic environment and integration of the country at present the banking sector in India cannot ignore the importance of corporate governance. The corporate governance philosophy of banks is the pursuit of sound business ethics and strong professionalism that aligns the interests of all stakeholders and the society. The State Bank of India is the largest bank amongst all public and private sector banks in India. It is the second largest bank in the world measured by the number of branch offices. The bank provides various domestic, international and NRI products and services through its vast network in India and overseas. State Bank of India needs to ensure good corporate governance in order to achieve excellence,