CORPORATE GOVERNANCE IN BANKING SYSTEM :

Banks play an important role in the economic development of a nation. As intermediaries in the Financial Sector, banks also act as trustees of the funds of the depositors. As such for efficient functioning of banks an effective Corporate Governance practices should be an integral part of bank management.

Banks should have good Corporate Governance which should be much more than complying with  legal and regulatory requirements. Good governance facilitates effective management and control of business, enables the Banks to maintain a high level of business ethics and to provide value additions to all their stakeholders.

The objectives of corporate governance would cover:

1. To protect and enhance shareholder value

2. To protect the interest of all other stakeholders such as customers, employees and society at large

3. To ensure transparency and integrity in communication and to make available full, accurate and clear information to all concerned

4. To ensure accountability for performance and customer service and to achieve excellence at all levels