Corporate Governance Of Banks Research Articles

Faktor – Faktor yang Mempengaruhi Efektivitas Audit Internal dalam Mewujudkan Good Corporate Governance (Studi Kasus pada Perbankan di Kota Padang Periode 2018 – 2020)

The influence of implementing auditor competence, the influence of independent auditors and audit committees on internal audit efficiency in fostering good corporate governance (a study of banking in the city of Padang). In this method, primary data is collected through questionnaires, making it a qualitative technique. The participants in this study were internal auditors from eleven different banks in Padang. Internal Audit Effectiveness in Realizing Good Corporate Governance is the dependent variable, and auditor competence, auditor independence, and audit committee independence are the independent variables used in this study. A statistical procedure called multiple regression analysis was used to check the information. Based on the findings, there is no relationship between the use of auditor competence and the effectiveness of internal audit in realizing good corporate governance in banking in the city of Padang. Likewise, there is no correlation between auditor independence and effectiveness, and there is a significant effect of independence on effectiveness. Audit delay, company size, financial health, and profitability are all relevant factors.

The Impact of Corporate Governance in Indonesia's Biggest Banks on Accounting Conservatism Through Audit Quality

The Impact of Corporate Governance in Indonesia's Biggest Banks on Accounting Conservatism Through Audit Quality

ISLAMIC CORPORATE GOVERNANCE AND ISLAMICITY PERFORMANCE INDEX ON FRAUD IN SHARIA COMMERCIAL BANKS

This study aims to impact Islamic corporate governance and fraud in Islamic banks. The Effect of Islamic Corporate Governance on Fraud in Islamic Commercial Banks. And Effect of Islamicity Performance Index on Fraud in Islamic Commercial Banks. This study uses quantitative methods and panel data on Islamic corporate governance variables. Islamicity Performance Index, and ICG and IPI Interaction. The results of this study The effect of positive ICG on fraud Regression Test Results The ICG variable has a coefficient of 4,377,977 and a probability of 0.015, more excellent than 0.05 based on the test. The ICG variable statistically means that the higher the ICG score, the more fraud cases increase, which results in a positive IPI influence on fraud. The results of the Regression Test Variable X1 has a coefficient of 3.536459 and a probability of 0.043, which is less than 0.05, while the variable X2 has a coefficient of -6.62755 and a probability of 0.003 is less than 0.05, which means that isn't it according to theory? If ICG and IPI increase, fraud will decrease, and Interaction Results in This Research Produce a new Variable. Regression Test Results Variable X1 has a coefficient of 17.47975 and a Probability of 0.007, which is less than 0.05, and Variable X2 has a coefficient of 4.735987 and a Probability of 0.406, which is more significant than 0.05 can be interpreted in the same direction and the Interaction Between X1, X2 ICG and IPI can be said to be Perfect that ICG Initially positive, from the ICG results, IPI becomes negative. Significantly, the higher the IPI score. An increase in ICG will reduce fraud cases.

The impact of green credit distribution on bank performance and influencing factors

This research aims to analyze the impact of green credit distribution by banks on bank performance and identify factors that can influence green credit. The study utilizes data from 46 banks in Indonesia during the 2018-2022 period, by using the panel data regression method. The findings indicate (i) that green credit does not have a significant influence on credit risk, as measured by the NPL (Non-performing Loan). The distribution of more green credit allocations does not result in a decrease in bank credit risk. Additionally, sustainable business borrowers do not exhibit better debt repayment performance compared to the non-sustainable business category. (ii) In terms of bank profitability, green credit does not impact ROE (Return on Equity) and NIM (Net Interest Margin), but it does have a negative effect on ROA (Return on Assets). Banks that allocate a significant portion of their credit distribution to green initiatives tend to experience a decline in their profits. (iii) Bank size has a positive impact on the allocation of green credit, with larger banks dedicating a greater portion to the distribution of green credit. Larger banks possess more capital and extensive networks, making them better equipped to address potential risks compared to smaller banks. (iv) Meanwhile, government ownership and good corporate governance in banks do not influence the proportion of green credit distribution. The author recommends that the government make corrections to existing green financing programs, to cultivate a green credit ecosystem in Indonesia. One concrete step that can be taken is to support government-owned banks in becoming pioneers in the distribution of green credit in Indonesia.

Mediating effect of corporate sustainability on corporate governance and performance of banks in Ghana: a post banking crisis perspective

Mediating effect of corporate sustainability on corporate governance and performance of banks in Ghana: a post banking crisis perspective

The role of responsibility accounting in activating corporate governance - an analytical study of the opinions of a sample of employees of some private banks listed on the Iraq Stock Exchange

The study aims to ascertain the significance of responsibility accounting in activating corporate governance in some private banks listed on the Iraq Stock Exchange (Ashur Investment Bank, Zain Iraq Islamic Bank, Asia Iraq Islamic Bank, Sumer Commercial Bank, Nour Iraq Islamic Bank). The approach was used (Descriptive-analytical) to analyze the nature of the relationship between the variables of the study. The questionnaire was used as a main tool for collecting data. (280) questionnaires were distributed to a random sample of (auditors working in the control and internal audit departments) in some private banks listed on the Iraqi Stock Exchange. The number of questionnaires retrieved was (272), of which (256) were valid for statistical analysis. The researcher employed many statistical tools and methodologies, including the arithmetic mean, standard deviation, correlation coefficient, and basic regression approach, to analyse the practical element of the study. The data was analysed using complex statistical software programmes, namely AMOS.V (.24), SPSS v.26, and Excel (2007). Theoretical findings indicate the presence of a knowledge gap about the function of responsibility accounting in promoting corporate governance, both in a general context and specifically within certain private banks listed on the Iraqi Stock Exchange. The study's practical findings indicate a moral correlation and a moral impact association between responsibility accounting and its dimensions, and corporate governance. The survey yielded several conclusions indicating a strong interest and enthusiasm among staff of certain private banks in prioritising corporate governance.

Employees perception on financial performance and corporate governance in commercial banks

Employees perception on financial performance and corporate governance in commercial banks

Urgensi Pelaksanaan Islamic Corporate Governance (Suatu Kajian Studi Literatur Pada Lembaga Keuangan Syariah)

Basically, companies and Islamic financial institutions are required to apply the principles of good governance. However, fraud in companies and institutions often occurs and cannot be avoided. In practice, Islamic banks still use the same principles as conventional institutions. This research is a literature study on the implementation of Islamic Corporate Governance in Islamic Financial Institutions, so that it can be seen what discussion has been researched and what discussion needs to be researched. This study uses a qualitative approach. There are 9 articles published in 2018 to 2022 which are grouped into three topics of discussion, namely: 1) Implementation of Islamic Corporate Governance in Islamic Banks, 2) Implementation of Islamic Corporate Governance in Non-Bank Institutions and 3) Implementation of Islamic Corporate Governance associated with Islamic Social Responsibility . Implementation of Islamic Corporate Governance in Islamic Banks is the most articles with a presentation of 44.4%. While the least discussed article is the Implementation of Islamic Corporate Governance associated with Islamic Social Responsibility, with a presentation of 22.2% of the overall theme of the Urgency of Implementing Islamic Corporate Governance in Islamic Financial Institutions. Discussions that need to be examined, such as: Islamic Corporate Governance principles that are in accordance with sharia and different from Corporate Governance principles in general are implemented in conventional institutions

Corporate Governance and Performance of Commercial Banks in Nepal

The purpose of this study was to examine the effect of corporate governance on performance of commercial banks in. It also examined the corporate governance practices of commercial banks. The study followed quantitative approach and descriptive research design. Multiple regression analysis was used to explore the causal relationship between corporate governance and financial performance of commercial banks. The study revealed a positive relationship of number of board meeting and foreign ownership and bank performance which shows higher the board meeting, foreign investment higher would be the bank performance. However, there was negative relationship of board size and capital adequacy ratio with bank performance indicating higher the board size, capital adequacy ratio would lead lower bank performance. Practices of corporate governance system of financial sector in Nepal is still infant stage however joint venture banks practices are more harmonizing rather than government banks and other banks.

ЭФФЕКТИВНОЕ КОРПОРАТИВНОЕ УПРАВЛЕНИЕ – КЛЮЧ К УСПЕШНОМУ ФУНКЦИОНИРОВАНИЮ БАНКОВСКОЙ ОРГАНИЗАЦИИ

The article discusses the main components of corporate governance in banks, which are crucial for maintaining the stability and reliability of the banking business. Particular attention is paid to the role of the Board of Directors, which is the main authority for overseeing the strategic course of the company and its activities. The issues of risk management, transparency and openness of information, shareholders' rights and compliance with regulatory requirements are also highlighted.

The Measurement Of Good Corporate Governance In Islamic Banking And Its Effect On Financial Performance (Empirical Study Of Islamic Commercial Banks In Indonesia)

This research aims to measure the quality of Good Corporate Governance (GCG) in Islamic Banking and examine its effect on financial performance. The independent variables examined include GCG Index, Board of Commissioner (BOC), Audit Committee (AC), Sharia Supervisory Board (SSB), Gender Diversity of BOC and SSB. The dependent variable includes financial performance determined by Return on Assets (ROA). This research uses samples of 11 Islamic Commercial Banks period of 2015-2019. They were selected using judgement sampling method. The data analysis method used panel data regression analysis with Fixed Effect estimation model. The result revealed that the GCG quality of Islamic Commercial Banks in Indonesia adheres to 90% of the indicator used in the GCG Index. Despite that, the GCG Index found no significant effect on financial performance. Moreover, the Good Corporate Governance implication in Board of Commissioner, Audit Committee, Sharia Supervisory Board and Gender Diversity also found no significant effect on Islamic banking’s financial performance.

Corporate Governance and Operational Performance of Banks in the MENA Region

This article aims to study the impact of corporate governance on the performance of banks operating in the MENA region over the period 2009-2020. The results, obtained using the maximum likelihood method and the system generalized method of moments (system-GMM), show that the size of the board of directors, CEO-chairman role duality, ownership concentration and the presence of remuneration and nomination committees have a significant impact on the performance of banks in MENA countries. In addition, the empirical results revealed that bank size, credit risk, capitalization ratio, economic growth and the quality of the institutional environment are indeed explanatory factors of bank performance. Our findings provide useful information to regulatory authorities to improve the governance mechanisms of banks in the MENA region.

Trend of the Research on Islamic Corporate Governance in Islamic Banking: A Bibliometric Analysis

Objective: Islamic Corporate Governance in Islamic Banking companies is a topic that is still poorly studied, and this study aims to test research trends regarding Islamic corporate governance in Islamic banking.   Methodology: This research is presented in literature by combining bibliometric (quantitative research)  and in the form of content (KualiTatif Research) analysis using 1040 Scopus articles, using several indicators of Islamic corporate governance in Islamic banking.   Result: The results of this study show a shift in the total number of publications regarding indicators of Islamic corporate governance in Islamic banking from 2017 to 2023. However, there are publications that have not increased from 2018-2022 due to the declining number of publications. The highest level of publication was in 2014, when the visualization was determined by the co occurance network by title and abstracts, with a minimum provision of 10 sentences from research related to Islamic corporate governance. In the diagram that appears in vosviewer shows that there are several sentence indicators that appear related to Islamic Banking including, corporate governance, Islamic economy, stability, trust, religiousity, brand role clarity, Islamic banking performance, personal financing and Islamic interbank benchmark and other determining indicators.   Conclusion: However, researchers find it difficult to trace islamic corporate governance indicators in analyzing bibliometrics in this study.

Characteristics Boards of Directors and Cash Dividend Policy

Purpose: The purpose of this study is to Explanation the relationship between the characteristics boards of directors (Board size, Board women's representation, Board independency, and Board diversity) and cash Dividend Policy.   Design/Methodology/Approach: The study uses a firm level panel data set of sample included 13 banks and insurance companies publicly traded firms on the Palestine Stock Exchange between 2012 and 2021. Cash Dividend Policy have been measured by (dividends per share), and the data analyzed within the framework of OLS regression technique.    Findings: The results of this study reveal no significant effects of all characteristics boards of directors on cash Dividend Policy at banks and insurance companies publicly traded on the Palestine Stock Exchange. The study recommended the need to control the application of corporate governance for commercial banks and insurance companies in Palestine.   Research, Practical & Social implications: The results of this study differ somewhat from most previous studies. The study emphasizes the necessity of activating internal governance factors related to the characteristics of the board of directors to support the process of making a decision to cash dividend Policy because of their important reflection on the analyzes and expectations of investors in the Palestine Stock Exchange.   Originality/Value: This study provides valuable insights to shareholders and stakeholders about activating internal governance mechanisms in the Palestinian financial sector and highlights the role of the characteristics boards of directors in making financial decisions, including cash dividend Policy, while giving a clearer picture to investors and analysts for building investment strategies.

Women in Corporate Governance in Banking: A Bibliometric Analysis

Abstract: 
 The vital players on the financial market in developing countries, banks, need strong corporate governance to ensure better performance and stability. This is the first study that investigates the impact of women in corporate governance in the banking industry and identifies research hotspots. The focus is on journal-published papers indexed in the Web of Science (WoS) database. Descriptive analytics is used to show how papers are distributed in the observed period as well as by publisher, category in the WoS, and the most cited authors and papers. Content analysis is used to examine how women impact corporate governance in the banking industry. By mining the abstracts, research hotspots are identified for the entire examined period and for the last five years. In the last five years, 70.4% of papers have been published, indicating that researchers' interest in this area is growing. Emerald Publishing Group LTD is the top publisher, while the most cited authors are Berger, A.N., Kick, T., and Schaeck, K. The keywords "approach, responsibility, difference, institution, commitment, financial performance, and risk" were the most frequently used in the whole analyzed period, while in the last five years, the most commonly used keyword is "value". The positive impact of women in corporate governance prevails, especially on CRS disclosure data, bank performance, stability, and value. Our findings may serve as a starting point for further research for academics, researchers, and banking professionals, as well as for shareholders and regulatory bodies when composing the bank boards.

Risk Management Governance and Sustainable Financial Performance

Purpose: The paper analyzes the efficacy of risk management governance, which takes the form of a dedicated risk governance committee and the executive board with the CRO. It illustrates which aspects of risk management and governance are crucial for the banks' financial performance. It also emphasizes financial sustainability through risk management and governance. Design/Methodology/Approach: A quantitative research approach is employed with secondary data from published and reliable sources. Regression analysis is employed for estimating the impact, and a t-test is performed for estimating the difference. Findings: It concludes that the financial performance measured using returns ratio significantly differs among the banks with the executive board having a CRO and the executive board having an absence of a CRO. The financial performance variable taken as a function of the bank's corporate governance variables assumes a positive and significant impact. It infers that risk governance can lead to sustainable financial performance. Research Limitations and Implications: This study contributes to the risk governance structure of banks. The future work should consider different samples and extended risk-based variables for more implications. Originality: The banks performance with a risk management approach in South Asian economies after the global crisis is a valuable addition to the corporate governance of banks in the studied countries. The comparative analysis of banks with and without the role of the CRO is a unique contribution in the provided setting.

Application of Good Corporate Governance (GCG) Principles Between State-owned Banking and Private Banking

Good Corporate Governance (GCG) in Indonesian banking on the level of soundness and competitiveness, to find out differences between the financial performance of Government-Owned Commercial Banks (BUMN), National Private Commercial Banks, Regional Development Banks and Foreign Banks with a risk profile approach, good corporate governance, earnings, and capital. The banking sector selected as the population used for this study is a bank registered in Indonesia. The research method used is the normative juridical method, the results of research on differences in the level of soundness between BUMN Banks, Private Banks, Loan to Deposit Ratio, Non Performing Loans, Good Corporate Governance, Return on Assets, Operating Expenses to Operating Income, and Capital Adequacy Ratio. The population of this study are state-owned banks, private banks in Indonesia which provide annual reports and corporate governance reports. Research results The implementation of good corporate governance has become a central issue in supporting economic recovery and growth

The Effects of Internal Governance Factors on Lending Portfolio Composition in Islamic Banks

Recent studies indicate that lending portfoliocomposition in Islamic banks is concentrated towardsdebt-based lending portfolio; however, the ideal lending portfoliocomposition in Islamic banks should be an equity-based lending portfolio. This article explores the effects of the internal governance factors on lending portfolio compositionofIslamic banks in the GCC Region. The internal governance factors investigated are board of directors’ characteristics (size and independence), Shariah supervisory board attributes (size and cross-membership), and ownership structure (family and government). The generalized least squares (GLS) method is used to examine the relationship between the study variables. The results indicate that two characteristics of the board of directors, size and independence, and two attributes of the Shariah supervisory board, Shariah board size and Shariah board cross-membership, have significant effects on lending portfolio composition of Islamic banks in the GCC Region. However, the rest of the internal governance factors have no effects on lending portfolio composition of Islamic banks in the GCC Region. These significant results add new contributions to the literature in the area of internal corporate governance of Islamic banks. The article concludes with suggestions for regulators and policy makers in the GCC Region with regard to the ideal characteristics of the board of directors and the optimal attributes of the Shariah supervisory board in Islamic banks as well as directions for future studies in this area of research.

Sources of Legal Regulation of Compliance in Ukrainian Banks

Problem setting. The banking sector plays a crucial role in the economy and therefore needs to function in a comprehensive and effective legal environment. In order to monitor compliance with current requirements, banks organize compliance offices, whose activities are regulated by numerous scattered provisions of national and international law. Analysis of recent researches and publications. The legal regulation of banking activity is constantly becoming the center of attention of practitioners, government experts and scientists, in particular E. Dmytrenko, L. Kasianenko, I. Tovkun. The legal regulation of compliance in banking and financial institutions has not yet received adequate coverage in legal studies, but certain aspects of it were considered in their works by M. Mozharovskyi, A. Mulyk, and N. Patsuriia. Purpose of the research is to systematize and analyze the sources of legal regulation of compliance in Ukrainian banks. Article’s main body. Banking activity in Ukraine is regulated by more than 2,500 regulatory and legal acts, which causes serious difficulties both for the sector itself and for regulatory and supervisory authorities. Legal norms, which form the institution of compliance, create the system, so they should be summarized using a hierarchical approach. Although the act of the highest legal force – the Constitution of Ukraine – does not directly mention either compliance or meeting the requirements in the banking sector, its individual provisions in one way or another relate to the necessity and importance of compliance with current norms: this is Art. 6, which defines the obligation to fulfill the requirements of legislation at the national level; Art. 13, 19, 41, 47, 65, which refer to personal compliance in certain spheres of public life. An important place in the system of sources of legal regulation of banking compliance is occupied by foreign legislative acts, with which Ukraine has brought national laws into compliance – in particular, documents from the EU Acquis. Thus, Directive 2015/849 specifies that banks must develop an internal compliance management policy, appoint a special manager, and can exchange information on compliance control between officials within the same bank or banking group. In 2021, for the first time, a holistic concept of the organization and operation of the compliance service within the bank was enshrined in legislation. Amendments to the Law “On Banks and Banking Activity” determine the obligation to form a compliance unit, the exclusive competence of the Bank’s Council regarding it, qualification requirements, status and powers of the Chief Compliance Manager. The leading normative document that defines the organizational and legal foundations of the service for ensuring the fulfillment of requirements is the Regulation of the NBU On the Organization of the Risk Management System in Ukrainian Banks and Banking Groups. It complements and expands the norms of the relevant Law regarding the appropriate status and qualifications of the Chief Compliance Manager, approaches to compliance risk management, and the place of the compliance department in the bank’s risk management system. Other regulatory documents of the National Bank of Ukraine, including the Regulation on the Organization of the Internal Control System in Ukrainian Banks and Banking Groups and the Regulation on Licensing of Banks, extend compliance regulation to related areas of bank activity. Mainly, these sources are harmonized with the international legal standards on this issue, first of all – with the Principles of Corporate Governance in Banks of the Basel Committee on Banking Supervision. Conclusions and prospects for the development. Therefore, the sources of legal regulation of compliance form a complex system of international standards, Ukrainian laws and by-laws of the NBU. Dispersion of relevant norms complicates and further weakens the effectiveness of state influence on relations regarding compliance with applicable requirements in the banking sector. Therefore, the codification of these sources is a promising direction of scientific and applied studies

Board Composition and Non-Performing Loans among Commercial Banks in Tanzania

Objective – This paper investigates the effect of board composition on non-performing loans (NPLs) for a sample of 31 commercial banks in Tanzania.Design/methodology – A quantitative study methodology was employed using annual data covering the period of 2011-2020. The authors used a one-step generalised method of moments (GMM) approach to estimate the effect of board composition on the percentage growth of NPLs in Tanzania.Results – The paper concludes that the number of board members with financial expertise, the board size, the audit committee, and the presence of female directors significantly negatively impact the bank’s NPLs and hence aid in lowering the bank’s NPLs. In contrast, an increase in board size, lagged NPLs, credit committees, independent directors, board meetings, and advances in deposit ratio significantly increases the level of NPLs, which is consistent with the agency theory.Research Limitations/Implications – Inconsistencies in the reported variables from various databases during the study and afterwards, as well as a lack of data for some banks in specific years. Shareholders should actively establish good corporate governance in the commercial banks (CBs) they own to reduce NPLs at an acceptable rate of less than 5%. Also, the Central Banks of Tanzania should encourage CBs to implement effective corporate governance practices by enacting rules and regulations to reduce NPLs. To minimize loan losses, authorities should impose micro-prudential supervision on commercial banks’ lending behavior. Novelty/Originality – The paper includes bank size and ownership using a one-step difference and one-step system (GMM) approach to measure the effect, which is usually not the case with most studies.