COMMERCIAL BANKING

CORPORATE GOVERNANCE

 Corporate governance is the set of processes,

customs, policies, laws or institutions affecting the
way in which a corporate is directed,
administered and controlled
 The principle players are the shareholders,
management and the board of directors
 It also include stakeholders (employee,
customers, bank and other lender regulations etc)
 Corporate governance is an important
theme which deals with issues of
accountability, implementation of guidelines
to ensure good behaviour and protect
shareholders
 There has been considerable interest in
corporate governance practices of modern
co-operations
 Board of members are those with
responsibilities for corporate
governance are increasingly rising
services of external providers to
conduct anti-corruption, auditing, due
diligence and training.
 Key elements of good corporate
governance provides principles
including honesty, trust and integrity,
openness, performance, orientation,
responsibilities and accountability,
mutual respect and commitment to the
organisation
 Corporate governance stresses on rights and
equitable treatment of shareholders, interest
of other stake holders, roles and
responsibilities of the board

1. Integrity and Ethical Behaviour

2. Disclosure and Transperancy
ISSUES INVOLVED IN CORPORATE
GOVERNANCE

 Oversight of the preparation of entities

in financial management
 Internal controls and the independence
of the entity auditors
 Review of the compensation
arrangements for CEO’s and other
executives
 The way in which individuals are
nominated for the positions on the
board
 The resource made available to the
directors in carrying out their duties
a) Management of risk
b) Dividend policy