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Corporate governance of banks – present and perspectives

Author

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  • Clara-Iulia ZINCA

    (The Bucharest Academy of Economic Studies)

Abstract

The present financial crisis revealed serious deficiencies in the banking corporate governance and emphasized the need of major improvements in their corporate governance techniques. In this respect, we believe that it is crucial for the banks to stop focusing on what they considered important before the crisis, namely on shareholders interested in obtaining big profits, and to concentrate on improving the relationships with the stakeholders and on regaining of the trust in the reliability of the banking system. By using adequate research methods, namely non-interactive observation, document analysis, comparison, interpretative methods and the empirical method of the survey, this article is intended to: present the concept of corporate governance in general and characteristics of this concept in the banking system; to present the new corporate governance regulatory frame in general and from the viewpoint of the supervisors of the financial stability; to discuss the characteristics of the corporate governance of banks in Romania, highlighting the structures of the corporate governance in the banking activity, remuneration policies, stakeholders’ position, transparency and ethics; and finally to present a series of conclusion regarding the lessons that the present financial crisis can teach us in order to consolidate the corporate governance of banks.

Suggested Citation

  • Clara-Iulia ZINCA, 2012. "Corporate governance of banks – present and perspectives," Anale. Seria Stiinte Economice. Timisoara, Faculty of Economics, Tibiscus University in Timisoara, vol. 0, pages 278-286, May.
    • Handle: RePEc:tdt:annals:v:xviii:y:2012:p:278-286
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    References listed on IDEAS

    as
    1. Shleifer, Andrei & Vishny, Robert W, 1997. "A Survey of Corporate Governance," Journal of Finance, American Finance Association, vol. 52(2), pages 737-783, June.
    2. Levine,Ross Eric, 2004. "The Corporate Governance of Banks - a concise discussion of concepts and evidence," Policy Research Working Paper Series 3404, The World Bank.
    3. René M. Stulz, 2008. "Risk Management Failures: What Are They and When Do They Happen?," Journal of Applied Corporate Finance, Morgan Stanley, vol. 20(4), pages 39-48, September.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    corporate governance; stakeholder; remuneration; transparency; ethics.;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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