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CORPORATE GOVERNANCE IN FINANCIAL INSTITUTIONS ON TRANSITION ECONOMIESDownload This Article
The corporate governance structure specifies the distribution of rights and responsibilities among different participants in the corporation, such as the board, managers, shareholders and other stakeholders, and spells out the rules and procedures for making decisions on corporate affairs. By doing this, it also provides the structure through which the company objectives are set, and the means of attaining those objectives and monitoring performance.
Corporate governance in financial institutions is the set of standards and principals used to create a system of checks and balances over the management of banks and financial intermediaries. It establishes the way financial institutions are directed and controlled, ordinarily through standards set for the conduct of the board of directors and senior management.
Countries have different political and regulatory environments, business standards and customs. Additionally, independent legal systems varying from country to country cause significant differences in corporate governance practices. There is, however, an international movement toward universal standards for all multinational financial institutions that has been gaining traction since the late 1990s. The topic of corporate governance of financial institutions and its role in stabilizing the industry has reached new levels of importance since the mid 1990s as a result of the globalization of financial markets, deregulation and technological change.
The Corporate Governance in banks is one of the most important discussions overall the world, being reinforced especially after the crises period.
This paper (discusion in conference) aims to evaluate the impact of corporate governance on financial performance, in the same time we are analyses corporate governance with focus in financial institution buth with importance of corporate governance in all aspects as a part of transition economies that has implement this CG.
Keywords: Corporate Governance, Banking Sector, Financial Institution, Board of Directors
How to cite this paper: Brahimi, F., Dibra, R., Prodani, G., Halili, K. & Dika, I. (2013). Corporate governance in financial institutions on transition economies. Corporate Ownership & Control, 11(1-2), 223-232. https://doi.org/10.22495/cocv11i1c2art1