Apr 27, 2023The 13 revised principles provide a framework within which banks and supervisors should operate to achieve robust and transparent risk
The bank's board is responsible for overseeing the management of the bank's compliance risk. The board should establish an independent compliance function and approve the bank's policies and processes for identifying, assessing, monitoring and reporting, and advising on compliance risk.
It is of crucial importance therefore that banks have strong corporate governance. 9. From a banking industry perspective, corporate governance involves the
In general, good corporate governance refers to the
effective and proactive control of a bank’s fate by its board and senior management, i.e. it implies control and management and means that the bank’s top managers lead it in such a way that it can fulfil its corporate mission.Corporate Governance in Banking Sector “ Corporate Governance ” is the mechanism by which
managers are selected, motivated, and become accountable shareholders, and managers as well. Banks work differently in their financing, business model, and balance sheets from most non-financial firms.
While there is no single approach to good corporate governance, the Basel Committee's revised principles provide a framework within which banks and supervisors should operate to achieve robust and transparent risk management and decision-making and, in doing so, promote public confidence and uphold the safety and soundness of the banking system.