Corporate Governance ensures to bring transparency, accountability and professionalism in the management system of a corporate body that enhances the credibility and acceptability to the shareholders, employees, potential investors, customers, lenders, governments and all other stakeholders. This is truer in case of Banking Industry. Since Banks deal in public money, public confidence is of outmost importance in this Industry.
From a banking industry
perspective, corporate governance involves the manner in which the business and
affairs of banks are governed by their boards of directors and senior
management, which affects how, they:
·Set
corporate objectives;
·Operate the bank’s business on a day to day basis;
·Meet the obligation of accountability to their shareholders
and take into account the interests of other recognized stakeholders
·Align corporate activities and behavior with the expectation
that banks will operate in a safe and sound
manner, and in compliance with applicable laws and regulations; and
·Protect
the interests of depositors.