Corporate Governance of Banks
Corporate governance is an important aspect of managing the corporate form of the organizations. Of late it has assumed greater significance and researchers, practitioners and policy makers have been exploring ways in which modern corporation should be managed to meet the economic, social and legal needs of different socio-political systems. Different bodies in different countries has studied the issue of corporate governance and recommended the ways in which corporates should be managed. They have highlighted the issues like shareholder protection, transparency, reporting, related party transactions etc. Means through which they wish to achieve desired objectives are board structure, shareholding patterns, role of gate keepers, CEO renumeration, and external market for corporate control etc. Of late researchers realized that the governance of bank is different as compared to other forms of corporate organizations. This paper attempts to understand this difference of corporate governance at banks and attempts made by different bodies to improve the corporate governance at banks. A special emphasis has been made to understand this issue for Indian banks.
Keywords - Corporate Governance, Banks, Indian Banks, Corporate Governance of Indian Banks.