IDEAS home Printed from https://ideas.repec.org/a/aat/journl/190.html
   My bibliography  Save this article

Corporate Governance – Determinant Of Moldovan Banking System Stability

Author

Listed:
  • Dorina CLICHICI

    (PhD, NIER)

  • Iulia LUPU

    (PhD, Financial and Monetary Research Centre “V. Slavescu” Romanian Academy, Romania)

Abstract

Recent events recorded in the banking sector of the Republic of Moldova – establishing special administration in three commercial banks by the National Bank of Moldova (NBM) – have highlighted the significant role which the quality of corporate governance presents for banking system. The aim of this paper is to identify the challenges of corporate governance for the stability of the Moldovan banking system and destabilizing effects of weak corporate governance structures within banking institutions and analyze the consequences of corporate governance deficiencies. For achieving the goal the author conducted a detailed analysis of normative acts regulating the banking system in order to identify the existing gaps regarding this subject and analyzed recent performances of commercial banks in Moldova. Despite some progress in addressing the recommendations of the International Monetary Fund (IMF) and the satisfactory reported performance of banks, there are serious governance problems in several banks including the largest ones.

Suggested Citation

  • Dorina CLICHICI & Iulia LUPU, 2015. "Corporate Governance – Determinant Of Moldovan Banking System Stability," Economy and Sociology, The Journal Economy and Sociology, issue 1, pages 93-96.
  • Handle: RePEc:aat:journl:190
    as

    Download full text from publisher

    File URL: http://brtsbiblioteca.socionet.ru/files/14.Clichici.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Johan Devriese & Mathias Dewatripont & Dirk Heremans & Grégory Nguyen, 2004. "Corporate governance, regulation and supervision of banks," Financial Stability Review, National Bank of Belgium, vol. 2(1), pages 95-120, June.
    2. Hamid Mehran & Lindsay Mollineaux, 2012. "Corporate Governance of Financial Institutions," Annual Review of Financial Economics, Annual Reviews, vol. 4(1), pages 215-232, October.
    3. Caprio, Gerard & Laeven, Luc & Levine, Ross, 2007. "Governance and bank valuation," Journal of Financial Intermediation, Elsevier, vol. 16(4), pages 584-617, October.
    4. Hamid Mehran & Alan Morrison & Joel Shapiro, 2011. "Corporate governance and banks: what have we learned from the financial crisis?," Staff Reports 502, Federal Reserve Bank of New York.
    5. Renee B. Adams & Benjamin E. Hermalin & Michael S. Weisbach, 2010. "The Role of Boards of Directors in Corporate Governance: A Conceptual Framework and Survey," Journal of Economic Literature, American Economic Association, vol. 48(1), pages 58-107, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bushman, Robert M., 2014. "Thoughts on financial accounting and the banking industry," Journal of Accounting and Economics, Elsevier, vol. 58(2), pages 384-395.
    2. Catarina Fernandes & Jorge Farinha & Francisco Vitorino Martins & Cesario Mateus, 2018. "Bank governance and performance: a survey of the literature," Journal of Banking Regulation, Palgrave Macmillan, vol. 19(3), pages 236-256, July.
    3. Mollah, Sabur & Liljeblom, Eva, 2016. "Governance and bank characteristics in the credit and sovereign debt crises – the impact of CEO power11We are grateful to the Editor, Prof. Iftekhar Hasan and three anonymous referees for valuable com," Journal of Financial Stability, Elsevier, vol. 27(C), pages 59-73.
    4. Dong, Yizhe & Girardone, Claudia & Kuo, Jing-Ming, 2017. "Governance, efficiency and risk taking in Chinese banking," The British Accounting Review, Elsevier, vol. 49(2), pages 211-229.
    5. Iqbal, Jamshed & Strobl, Sascha & Vähämaa, Sami, 2015. "Corporate governance and the systemic risk of financial institutions," Journal of Economics and Business, Elsevier, vol. 82(C), pages 42-61.
    6. Kutubi, Shawgat S. & Ahmed, Kamran & Khan, Hayat, 2018. "Bank performance and risk-taking — Does directors' busyness matter?," Pacific-Basin Finance Journal, Elsevier, vol. 50(C), pages 184-199.
    7. Ibáñez-Hernández, Francisco J. & Peña-Cerezo, Miguel A. & Araujo-de-la-Mata, Andrés, 2019. "Corporate governance and procyclicality in a banking crisis: Empirical evidence and implications," Finance Research Letters, Elsevier, vol. 30(C), pages 271-275.
    8. Stulz, Rene M., 2014. "Governance, Risk Management, and Risk-Taking in Banks," Working Paper Series 2014-10, Ohio State University, Charles A. Dice Center for Research in Financial Economics.
    9. Agarwal, Samanvaya & Kamath, Saipriya & Subramanian, Krishnamurthy & Tantri, Prasanna, 2022. "Board conduct in banks," Journal of Banking & Finance, Elsevier, vol. 138(C).
    10. César Portalanza Chinguel, 2021. "Gobierno corporativo y desastre financiero en el sistema financiero. El caso de una microfinanciera," Revista de Análisis Económico y Financiero, Universidad de San Martín de Porres, vol. 4(01), pages 25-30.
    11. Olivier De Jonghe & Mustafa Disli & Koen Schoors, 2012. "Corporate Governance, Opaque Bank Activities, and Risk/Return Efficiency: Pre- and Post-Crisis Evidence from Turkey," Journal of Financial Services Research, Springer;Western Finance Association, vol. 41(1), pages 51-80, April.
    12. Maria Gaia Soana & Laura Barbieri & Andrea Lippi & Simone Rossi, 2021. "The Effect of Multiple Large Shareholders on Banks’ Profitability and Risk," Sustainability, MDPI, vol. 13(4), pages 1-15, February.
    13. Berger, Allen N. & Kick, Thomas & Schaeck, Klaus, 2014. "Executive board composition and bank risk taking," Journal of Corporate Finance, Elsevier, vol. 28(C), pages 48-65.
    14. Wilson, John O.S. & Casu, Barbara & Girardone, Claudia & Molyneux, Philip, 2010. "Emerging themes in banking: Recent literature and directions for future research," The British Accounting Review, Elsevier, vol. 42(3), pages 153-169.
    15. Vittoria Cerasi & Tommaso Oliviero, 2014. "Managerial compensation, regulation and risk in banks: theory and evidence from the financial crisis," Working Papers 279, University of Milano-Bicocca, Department of Economics, revised Jul 2014.
    16. Switzer, Lorne N. & Tu, Qiao & Wang, Jun, 2018. "Corporate governance and default risk in financial firms over the post-financial crisis period: International evidence," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 52(C), pages 196-210.
    17. Robert M. Bushman & Bradley E. Hendricks & Christopher D. Williams, 2016. "Bank Competition: Measurement, Decision‐Making, and Risk‐Taking," Journal of Accounting Research, Wiley Blackwell, vol. 54(3), pages 777-826, June.
    18. Fadun, Olajide Solomon, 2017. "Corporate governance, a risk management tool for enhancing organizational performance: Study of Nigeria Stock Exchange(NSE)listed companies," International Journal of Finance & Banking Studies, Center for the Strategic Studies in Business and Finance, vol. 6(4), pages 12-27, April.
    19. Papadimitri, Panagiota & Staikouras, Panagiotis & Travlos, Nickolaos G. & Tsoumas, Chris, 2019. "Punished banks' acquisitions: Evidence from the U.S. banking industry," Journal of Corporate Finance, Elsevier, vol. 58(C), pages 744-764.
    20. Bowo Setiyono & Amine Tarazi, 2018. "Does Diversity of Bank Board Members Affect Performance and Risk? Evidence from an Emerging Market," CSR, Sustainability, Ethics & Governance, in: Belén Díaz Díaz & Samuel O. Idowu & Philip Molyneux (ed.), Corporate Governance in Banking and Investor Protection, chapter 0, pages 185-218, Springer.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aat:journl:190. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Iordachi Victoria (email available below). General contact details of provider: https://edirc.repec.org/data/iefscmd.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.