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The Importance Of Corporate Governance In The Banking System

Author

Listed:
  • Alina HAGIU

    (Faculty of Economics and Law, University of Pitesti, Romania)

  • Marinela BÃRBULESCU

    (Faculty of Economics and Law, University of Pitesti, Romania)

Abstract

Corporate governance plays an essential role in the stability and efficiency of the banking sector, ensuring transparency, risk management and protection of stakeholders' interests. This article analyzes the importance of corporate governance in banks, with a focus on international regulations and particularities in Romania and Europe. It highlights the benefits of effective governance, such as increased financial stability and improved economic performance, but also the risks of weak governance, such as loss of trust and vulnerability of banking institutions. It also outlines mechanisms for improving governance, including transparency, internal control and ESG integration.

Suggested Citation

  • Alina HAGIU & Marinela BÃRBULESCU, 2023. "The Importance Of Corporate Governance In The Banking System," Scientific Bulletin - Economic Sciences, University of Pitesti, vol. 22(1), pages 49-56.
    • Handle: RePEc:pts:journl:y:2023:i:1:p:49-56
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    References listed on IDEAS

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    1. Hani El-Chaarani & Zouhour El-Abiad, 2022. "The impact of public legal protection on the internal corporate governance efficiency in banking sector," Journal of Economic and Administrative Sciences, Emerald Group Publishing Limited, vol. 40(3), pages 482-515, April.
    2. Francesca Arnaboldi, 2019. "Corporate Governance In The European Banking Sector: Some Remarks On Diversity," Journal of Financial Management, Markets and Institutions (JFMMI), World Scientific Publishing Co. Pte. Ltd., vol. 7(01), pages 1-10, June.
    3. Iyad Isbaita, 2020. "Corporate governance in banking institutions," Manager Journal, Faculty of Business and Administration, University of Bucharest, vol. 31(1), pages 75-85, December.
    4. Laeven, Luc & Levine, Ross, 2009. "Bank governance, regulation and risk taking," Journal of Financial Economics, Elsevier, vol. 93(2), pages 259-275, August.
    5. Dr. Abdullah Ahmed Aldaas & Dr. Suleiman Jamal Mohammad & Dr. Mohammad Yousef Abuhashesh, 2019. "Successful Implementation of Corporate Governance Mechanisms in Banks," Journal of Social Sciences (COES&RJ-JSS), , vol. 8(4), pages 692-710, October.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    corporate governance; banking sector; transparency; financial risk; banking regulation; sustainability;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

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