SUBJECT- BANKING Corporate Governance is an integral part of the Management Control System (MCS) which directly...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
SUBJECT- BANKING Corporate Governance is an integral part of the Management Control System (MCS) which directly reflects in maintaining the image and the reputation of the company and its strategy because of global competition. In today's fast-growing economies, the reputation of an organisation has much important as its market value. Added to the financial crisis, the organizations are facing governance issues which are creating reputational and other risks. To overcome these, the corporate sector is focusing on a new concept called "Corporate Governance". Business ethics, Corporate Governance and Corporate Social Responsibility have become not only an integral part of the present globalised business environment, but also have changed the business model of banks and they are also enforcing such issues. Banks play an important role in the economic development of a nation as an intermediary in the financial sector. Banks also act as the trustees of the funds of the depositors. Thus, for efficient functioning and control in banks, an effective Corporate Governance practices should be an integral part of bank management. Banks should have good Corporate Governance in force which should be much more than complying with legal and regulatory requirements. The objectives of corporate governance in the banks must cover broadly: I. To protect and enhance shareholders value. II. To protect the interest of all other stakeholders consisting of customers, employees and society at large. III. To ensure transparency and integrity in communication and to make available full, accurate, clear information to all concerned whether public or the government or any other. IV. To ensure accountability of the employees for work performance and in giving customer services and to achieve excellence at all the levels of their work and services. The role of the Board of directors, Chairman and/or CEO and Committees of the board is not only important but crucial in governance matters. The Bank's Board of directors should meet regularly and to provide effective leadership and insight in business and functional areas. They also should monitor bank's performance of business. The Chairman and/or CEO have the responsibility for all aspects of executive management and is accountable to the Board for the ultimate performance of the bank and for implementation of the policies laid down by the Board. A senior executive is made responsible in respect of compliance issues. Board level committees are also formed, to assist the Board of directors in working and to function effectively. These committees provide effective professional support in the conduct of Board level business in key areas and also provide inputs for taking major decisions. A. Elaborate the role of the Board of directors, Chairman and/or CEO and Committees of the Board in governance matters. List some of the important committees of the Board constituted in banks for the purpose of compliance of governance. (6 Marks) B. State the sound corporate governance principles as outlined by the Basel Committee as have been approved by Reserve Bank of India (RBI) also.. SUBJECT- BANKING Corporate Governance is an integral part of the Management Control System (MCS) which directly reflects in maintaining the image and the reputation of the company and its strategy because of global competition. In today's fast-growing economies, the reputation of an organisation has much important as its market value. Added to the financial crisis, the organizations are facing governance issues which are creating reputational and other risks. To overcome these, the corporate sector is focusing on a new concept called "Corporate Governance". Business ethics, Corporate Governance and Corporate Social Responsibility have become not only an integral part of the present globalised business environment, but also have changed the business model of banks and they are also enforcing such issues. Banks play an important role in the economic development of a nation as an intermediary in the financial sector. Banks also act as the trustees of the funds of the depositors. Thus, for efficient functioning and control in banks, an effective Corporate Governance practices should be an integral part of bank management. Banks should have good Corporate Governance in force which should be much more than complying with legal and regulatory requirements. The objectives of corporate governance in the banks must cover broadly: I. To protect and enhance shareholders value. II. To protect the interest of all other stakeholders consisting of customers, employees and society at large. III. To ensure transparency and integrity in communication and to make available full, accurate, clear information to all concerned whether public or the government or any other. IV. To ensure accountability of the employees for work performance and in giving customer services and to achieve excellence at all the levels of their work and services. The role of the Board of directors, Chairman and/or CEO and Committees of the board is not only important but crucial in governance matters. The Bank's Board of directors should meet regularly and to provide effective leadership and insight in business and functional areas. They also should monitor bank's performance of business. The Chairman and/or CEO have the responsibility for all aspects of executive management and is accountable to the Board for the ultimate performance of the bank and for implementation of the policies laid down by the Board. A senior executive is made responsible in respect of compliance issues. Board level committees are also formed, to assist the Board of directors in working and to function effectively. These committees provide effective professional support in the conduct of Board level business in key areas and also provide inputs for taking major decisions. A. Elaborate the role of the Board of directors, Chairman and/or CEO and Committees of the Board in governance matters. List some of the important committees of the Board constituted in banks for the purpose of compliance of governance. (6 Marks) B. State the sound corporate governance principles as outlined by the Basel Committee as have been approved by Reserve Bank of India (RBI) also..
Expert Answer:
Answer rating: 100% (QA)
A The role of the Board of Directors Chairman andor CEO and Committees of the Board in governance matters The Board of Directors is the highest authority in the organization and is responsible for the ... View the full answer
Related Book For
Introduction to Business Law
ISBN: 9780324826999
3rd Edition
Authors: Jeff rey F. Beatty, Susan S. Samuelson
Posted Date:
Students also viewed these finance questions
-
Did Professor Angevine have a reasonable expectation of privacy in his office computer?
-
Would the case have been decided differently if the project built only a large industrial park? Why or why not?
-
1. Did Dr. Ortega have a reasonable expectation of privacy, at least as to his desk and file cabinets? 2. Why didnt the Supreme Court require that the employer have a warrant based on probable cause...
-
On 1 June 2019, Manchester United Ltd bought 48 million ordinary shares in Chelsea FC Ltd paying GHS 280 million cash. The summarised statement of financial position for the two entities as at 31...
-
Why does a foreign security with a high expected domestic return relative to what an investor could earn in his or her home country not necessarily have a high expected foreign return for that...
-
An open tube, 1 mm in diameter and 6 in. long, has pure hydrogen blowing across one end and pure nitrogen blowing across the other. The temperature is 75C. (a) For equimolar counterdiffusion, what...
-
Using only the factor formulas given in Table 2.6, derive Equation 7.5 starting with Equation 7.3. TABLE 2.6 Summary of Discrete Compounding Interest Factors. To Find Given Factor Symbol Name P F...
-
The financial statements of P&G are presented in Appendix 5B or can be accessed at the books companion website, www.wiley.com/college/kieso. Instructions Refer to P&Gs financial statements and the...
-
Tina is aware that thousands of children starve to death every day, but only after reading a story about a single starving child did she decide to donate money to a charitable organization. Tina's...
-
Jack Tasker opened his Auto Repair Shop in November 2023. The balance sheet at November 30, 2023, prepared by an inexperienced part-time bookkeeper, is shown below. Required Prepare a correct balance...
-
1. (Elasticity Related Question) The following Table-1 shows the price and quantity demanded for good X and good Y and the income of the consumer. Using this table answer the following questions....
-
Suppose on January 15, 2018, the U.S. Treasury issued a ten-year inflation indexed note with a coupon of 6%. On the date of issue, the CPI (consumer price index) was 225. By January 15, 2028, the CPI...
-
Pams company wants to get rid of an old company car, but they need to know the book value first. The car was originally purchased for $32,000. The accumulated depreciation is $12,000. This car was...
-
Arturo is ineligible for his employer's health insurance plan. He has the option of either a high or low deductible plan. Arturo is relatively healthy and can afford to self-insure more of his...
-
Identify common organization citizenship behaviors and talk about their correlation with job satisfaction
-
10)Consider two firms producing the same good for a common market. Firm 1 has the cost function ofc(q1)=2q1 and firm 2 has the cost function of c(q2)=q2. Assuming they compete as Bertrandduopolists,...
-
Briefly discuss the meaning of "lobbyist" in America and explain 3 pros and 3 cons.
-
In Exercises evaluate the limit, using LHpitals Rule if necessary. lim 07x cos x X
-
Did Kelly violate the RCRA?
-
Why would anyone argue that We didnt do it but if we did we had a right to. Doesnt the second half undercut the first half?
-
Why does that make a difference?
-
True or false? Economic theory argues that discrimination should be eliminated. Why?
-
Why is discrimination based on characteristics that affect job performance difficult to eliminate?
-
Visit the Suzy Lamplugh Trust website at http://www.suzylamplugh.org and the Social Research Association at http://the-sra.org.uk/sra_resources/safety-code/ . Browse the guidance leaflets/web pages...
Study smarter with the SolutionInn App